Karachi: The government is likely to offer an additional incentive of 67% higher prices on oil production and 33% on gas production to increase the pace of oil and gas exploration.
According to the Alfalah Securities Limited, the government would offer USD 1 per mmcf on first three offshore gas discoveries while USD 2 per mmcf on first three shale gas discoveries, both to be above the existing USD 6 per mmcf conventional gas producer price. This would also enable the floor on oil production to increase from the existing USD 30 to USD 50 per barrel. Alfalah Securities expects OGDC, PPL and POL to benefit the most as the additional incentives would result in a positive impact on their earnings per share.
Buy on dips.