Pakistan Oil Fields plans on drilling another exploratory well, Bela-1 in Meyaland Dhulian field. MOL, the operator of Tal block and in which POL owns 21.05% stake is in the process of drilling and talks about encouraging results.
The overall production outlook of the company is more positive than it has been for a long time. It still has problems at the Pindori field.
Oil production contributes to more than 56% of revenue, so it is enjoying the high oil price. The government has announced 'Petroleum Policy 2007'and has removed the $36 per barrel cap. The new policy holds incentives for the E&P companies, especially those companies, which are pursuing aggressive exploration activities. The policy will lead to a 6-8% increase in the oil and gas production prices.