ISLAMABAD:

The circular debt has deteriorated the financial position of oil and gas exploration companies, leaving them unable to invest in exploration activities. Additionally, the companies have been facing cash flow problems as gas is curtailed due to LNG imports that have flooded into the country.

The exploration companies have repeatedly raised the issue of circular debt in the gas sector, arguing that it has compromised their financial health and restricted their ability to move ahead on their investment plan. The government has recently awarded 23 offshore licences to oil and gas exploration companies, mainly state-owned firms like OGDCL and PPL. Blocks were also awarded to Mari Energies.

These companies require substantial finances to execute their plans for drilling offshore fi

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