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Pakistan Petroleum, Oil & Gas, Win Southwest Blocks

Pakistan's government says insurgents have attacked pipelines and key installations in the province in the past. Tribal leaders deny the attacks saying they are demanding royalties on minerals and fuels discovered in their region.

Oct. 2 (Bloomberg) -- Oil & Gas Development Co., Pakistan's largest explorer, and Pakistan Petroleum Ltd. won eight licenses to search for oil and gas in southwestern Baluchistan province, where facilities have previously been hit by an insurgency.

Oil & Gas has been awarded five blocks and Pakistan Petroleum, the biggest gas producer, won three out of the total 14 onshore licenses given in Baluchistan on Sept. 30, according to a report by the Petroleum Ministry.

Oil & Gas plans to drill at least nine wells in Baluchistan for the first time in six years, tapping a region that borders Iran and Afghanistan and holds half of Pakistan's gas reserves, Chief Executive Zahid Hussain said in an interview in July. Pakistan Petroleum has operated Sui, the nation's biggest gas field, in the province since 1955.

Oil and Gas shares, which account for about one fifth of the benchmark Karachi 100 Index, fell 0.2 percent to 106.85 rupees at 10:39 a.m. local time in Karachi. Pakistan Petroleum shares dropped 1.1 percent to 185.25 rupees.

Pakistan's government says insurgents have attacked pipelines and key installations in the province in the past. Tribal leaders deny the attacks saying they are demanding royalties on minerals and fuels discovered in their region.

Nawab Akbar Bugti, a Baluch tribal chief, was killed in August 2006 in a military operation ordered by the country's former military ruler, Pervez Musharraf. Interior Minister Rehman Malik said in April Brahamdagh Bugti, Akbar's grandson, is now leading the rebellion.

To contact the reporters on this story: Khalid Qayum in Islamabad at kqayum@bloomberg.net; Khaleeq Ahmed in Islamabad at paknews@bloomberg.net.


Writer: By Khalid Qayum and Khaleeq Ahmed

Source: http://www.bloomberg.com/apps/news?pid=20601091&sid=azCAsJcPATEI#

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