Militants in Pakistan kill six at oil and gas production site

Police stand guard along a road they blocked after Taliban militants seized a police station in Bannu on December 19, 2022. (AFP/File)
Short Url
Updated 24 May 2023
Follow

Militants in Pakistan kill six at oil and gas production site

  • Attack by up to 50 militants took place at facilities run by MOL Pakistan Oil and Gas Company, unit of Hungary’s MOL
  • Police said the militants targeted two wells, known as M-8 and M-10, with heavy weapons, including rocket-propelled grenades

PESHAWAR: Militants stormed natural gas and oil production facilities in northwest Pakistan on Tuesday, killing four police and two private guards, police and the operator said.

The attack by up to 50 militants took place at facilities run by MOL Pakistan Oil and Gas Company, a unit of Hungary’s MOL, in Hangu district near the Afghan border, police official Irfan Khan said.

Police said the militants targeted two wells, known as M-8 and M-10, with heavy weapons, including rocket-propelled grenades.

The Tehreek-e-Taliban Pakistan (TTP) — also known as the Pakistani Taliban — claimed responsibility for the attack.

The TTP have operated for years from remote mountains in the northwest, launching attacks on security forces and infrastructure in their campaign against the state.

“No MOL employee was present at the scene of the attack, six members of the security forces guarding the area were killed,” MOL said, saying the members of the security forces included Pakistani soldiers and third party contractors.

The company also said in its statement to Reuters that production from the wells had been temporarily shut down by remote access and they were now secured, pending completion of an on-site regulatory investigation.

It said production from other wells continued and the incident had not affected MOL’s production in Pakistan.

“The security guards at M-8 repulsed the terrorists’ attack but the casualties took place at M-10,” police official Khan said, adding that they also damaged a solar power plant at the gas power plant.

He said the militants then fled to adjoining North Waziristan, from they had originally come.

Fahad Rauf, head of research at Ismail Iqbal Securities, said oil and gas output in Pakistan had been falling in part because there had been no major discoveries, amid poor security, rising debt problems and a lack of local technical expertise.

He said oil output had dropped 18 percent in 2022 compared to 2019, while gas production was down 14 percent in the same period.

“The country has exploited much of the existing producing areas but is not able to explore belts near the Afghan border due to the security situation,” he said.

He said foreign investment and exploration activity had picked up in the Waziristan belt but the situation had worsened since the US withdrawal from Afghanistan.

With foreign firms exiting, he said that “Pakistan lacks the expertise and funds to tap unconventional reserves despite having one of the highest shale reserves in the world.”


Islamabad says Nestlé to invest $60 million in Pakistan, expand operations

Updated 14 sec ago
Follow

Islamabad says Nestlé to invest $60 million in Pakistan, expand operations

  • Pakistan finance minister chairs roundtable conference featuring CEOs, leaders of various multinationals at Davos
  • Nestlé official says company intends to use Pakistan as regional export, manufacturing hub, Pakistan Finance Division says

ISLAMABAD: Global food and beverage company Nestlé has announced it would invest $60 million in Pakistan and expand its operations in the country, Pakistan’s Finance Division said in a statement on Thursday. 

The development took place in Davos at the sidelines of the World Economic Forum summit in Davos. Finance Minister Muhammad Aurangzeb chaired a high-level Business Roundtable featuring various chief executive officers and senior leaders of global corporations to discuss Pakistan’s reform trajectory, investment climate and growth potential. 

“A major highlight of the discussion was the announcement by Mr. Remy Ejel, Executive Vice President and Chief Executive Officer for Asia, Oceania, and Africa at Nestlé, of an additional investment of USD 60 million in Pakistan,” the Finance Division said.

“Mr. Ejel stated that Nestlé will undertake a robust expansion of its operations in the country, reaffirming its long-term commitment to Pakistan.”

Ejel further announced that Nestlé intends to use Pakistan as a regional manufacturing and export hub, exporting products to 26 countries from here, the statement said. 

In August last year, a high-level Nestlé delegation met Aurangzeb and outlined the company’s strategy centered on localization, advanced manufacturing, sustainability and agricultural transformation in the country. 

Ejel noted that Pakistan’s demographic profile, growing nutrition needs and “underpenetrated value-added food segments” closely mirror successful growth trajectories seen in Southeast Asia, the Finance Division said. 

The Pakistan finance minister welcomed Nestlé’s announcement, describing it as a “strong vote of confidence” in the country’s economic reforms and formalization drive. 

“He reaffirmed the Government’s commitment to strengthening the tax ecosystem, ensuring policy consistency, and facilitating responsible long-term investment through continued engagement with the private sector, including via the Tax Policy Office established within the Finance Division,” the statement said.