Pakistan searches for Yemeni oil

Pakistan Petroleum will explore for oil in Yemen this year with partner OMV, Bloomberg reported. The state-run company plans to increase Pakistan's energy supplies in line with increased demand through the 50:50 joint venture with Europe's largest oil exploration company. It is Pakistan Petroleum's first overseas venture.

http://www.ameinfo.com/111490.html

OGDC is facing lot of competetition at home, as all new exploration contracts are being given on open biddings and foreign companiese are offering higher share to government, they got a good overseas deal and would be able to maintain their profits and growth.

im surprised,maybe my ignorance in the matter.I thought that foreign exploration companies take a bigger chunk of the pie.

but regardless,dont we still save since the company would be Pakistani and the revenue would stay inPakistan than going abroad?

you are right on the money, problem here if you are opening up your economy you cant be selective about giving business to only local companies, giving others opportunity is what brings foreign investment.

But we have to realise that when we open up our economy we also need to have safegurds abt the money and movement of money. Now if we are to allow foregin companies to come and establish in Pakistan as well than we need to make sure they wont be taking all the money out of pakistan and some infact greater sum is reinvested in pakistan.

eg: egypt has big tourism market but major hotels are foreign owen same with tourist operates. So egypt earns billion from tourism but what happens next is that abt 60% of the income goes out of the country as well since forgein corportaion move profits back to their head countries.

this is what we need to secure. IF we allow billions of dollars to go out side the economy then it would equal explotation. So we GOP needs to have safe gurds underwhich atleast 50% is reinvested if not abt 75%. Otherwise we will be at loss.