Offshore oil, gas exploration: Pakistan, Russia sign MoU

Pakistan and Russia signed a memorandum of understanding (MoU) to implement US $10 billion offshore gas pipeline agreement here at Petroleum Division on Wednesday. In this respect, Managing Director Inter State Gas Systems Pakistan, Mobin Saulat, and Vitaly A Markelov of Gazprom signed an inter-corporate agreement (between companies).

The Russian delegation headed by Vitaly A Markelov, Deputy Chairman of the Management Committee, PJSC, Gazprom International, visited the Petroleum Division. Federal Minister for Petroleum Division, Ghulam Sarwar Khan appreciated the expanding trajectory of bilateral relations between Russia and Pakistan.

He welcomed Gazprom”s interest in offshore gas pipeline project and termed it a manifestation of multifaceted cooperation between both the countries. This project envisages transporting of gas molecules from Gazprom”s sources in the Middle East onwards to Pakistan with a possibility in extending it further to South Asian countries.

The pipeline would follow an integrated approach including other ancillary projects such as under ground gas storage, desalination and other power projects.

Pakistan will import some 500 million to 1 billion cubic feet of gas from Russia daily, which would be transported via sea link, the agreement stipulates. The pipeline construction is expected to be completed in three to four years.

The Russian side thanked their Pakistani counterparts for the facilitation being extended in preparing necessary groundwork for the project and renewed their commitment to deepening energy cooperation between both sectors.

The Russian side invited the federal minister to visit Russia at mutually convenient dates.