Page 9 - AsianOil Week 44 2022

AsianOil EAST ASIA AsianOil

Singapore's UOB commits to

ending fossil fuel financing

FINANCING SINGAPORE’S United Oversea Bank has recognised climate science models and to set its
pledged to provide no further financing for sectoral targets on “regional pathways” that are in
UOB is following the upstream hydrocarbon projects after this year, line with global net-zero ambitions.
examples of many following similar moves by its Western peers. “In Southeast Asia, our net-zero ambitions
Western financiers, but The bank is targeting net zero by 2050, and must go hand in hand with an orderly and just
is the first in Asia to said it will do what it can to support a just tran- transition to take into account socio-economic
take such a step. sition that advances sustainable socioeconomic challenges. Even as we cut our carbon footprint,
development and decarbonisation in Asia. It we must ensure that people’s lives and livelihoods
is the first Asian bank to stop financing fossil can continue to improve,” UOB chief executive
fuels, however, and this move comes as coun- Wee Ee Cheong said. “It is important to balance
tries across the continent struggle with soaring growth with responsibility on our net-zero jour-
oil and gas prices, in some cases leading to fuel ney. Our targets are ambitious, yet realistic, and
shortages, blackouts, and the switching back on they also meet the global goals of net zero for
coal power plants. Asean.”
Its commitments cover six carbon-intensive UOB will notably continue financing for the
economic sectors that together amount to 60% thermal coal sector up until 2039, although it
of its corporate lending portfolio – oil and gas, has already prohibited itself from new project
power, construction, steel, automotives and real financing or greenfield or expansion of coal-fired
estate. UB said that it had used internationally power plants and thermal coal mines. ™

SOUTH ASIA

Pakistan pursues extra onshore exploration

POLICY THE Pakistani government has received bids for to invest a minimum of $75mn. The government
five onshore blocks in the south-western prov- intends to open another licensing round in early
Pakistan is looking at ince of Balochistan stemming from the second 2023.
ways to curb its reliance licensing round to be held this year. According The new policy for open bidding rounds fol-
on imports. to a report in Pakistan’s Tribune Express, four oil lows a period when oil and gas production in
and gas exploration and production companies Pakistan has been “static” after a number of pol-
placed bids with the government. icy changes by a succession of governments, the
The minimum investment in the blocks, report said. In 2015, a policy was implemented
which are located in high-risk areas, will amount to import LNG, which subsequently led to the
to a total of $22.6mn over the three-year explo- country relying on LNG for 24% of total gas
ration period, the report said, adding that the supply.
companies will also contribute $450,000 in social The report pointed to the recent situation
welfare projects in the areas of the respective when state-owned Pakistan LNG Ltd (PLL)
blocks. For blocks where oil or gas is discovered, failed to arrange LNG cargoes on a spot basis.
the companies are expected to make millions of Earlier this year, the company issued a tender for
dollars of investments for development and pro- 12 LNG cargoes annually under a six-year con-
duction, the report said. tract, but no LNG supply company participated
Oil and Gas Development Company Ltd in the bidding.
(OGDCL), Pakistan Petroleum Ltd (PPL), Mari PPL announced last month that it had made a
Petroleum, and Pakistan Oilfields Ltd (POL) are gas discovery at the Shahpur Chakar North X-1
the bidding companies. well in Block 2568-18 in the Sanghar district of
The licensing round was the second in a Sindh Province. PPL reported that initial testing
programme put forward by the country’s petro- showed a flow of 15.2mn cubic feet (430,000
leum authority designed to attract investment in cubic metres) per day along with 321 barrels per
domestic oil and gas fields in an effort to reduce day of condensate.
future import volumes and to also promote In late October, OGDCL announced the
transparency to ensure a level playing field for discovery of oil reserves at the Toot Deep-I well
bidders, the report said. The exploration work is located in the Attock district of Punjab Province.
also expected to create job opportunities. The company reported that the well tested oil at
First round results saw the award of licences a rate of 882 bpd with a gas flow of 0.93mmcf
for 15 blocks and the commitment by companies (0.023 mcm) per day. ™

Week 44 08•November•2022 www. NEWSBASE .com P9