AVN 49.56 Decreased By ▼ -1.29 (-2.54%)
BAFL 28.70 Decreased By ▼ -0.16 (-0.55%)
BOP 3.68 Decreased By ▼ -0.02 (-0.54%)
CNERGY 3.30 Decreased By ▼ -0.01 (-0.3%)
DFML 11.14 Increased By ▲ 0.14 (1.27%)
DGKC 52.75 Decreased By ▼ -0.37 (-0.7%)
EPCL 44.20 Increased By ▲ 0.19 (0.43%)
FCCL 12.75 Increased By ▲ 0.15 (1.19%)
FFL 6.28 Increased By ▲ 0.01 (0.16%)
FLYNG 5.99 Decreased By ▼ -0.09 (-1.48%)
GGL 10.50 Decreased By ▼ -0.20 (-1.87%)
HUBC 68.70 No Change ▼ 0.00 (0%)
HUMNL 5.87 Decreased By ▼ -0.13 (-2.17%)
KAPCO 22.66 Decreased By ▼ -0.24 (-1.05%)
KEL 1.86 No Change ▼ 0.00 (0%)
LOTCHEM 29.30 Decreased By ▼ -0.22 (-0.75%)
MLCF 28.89 Decreased By ▼ -0.06 (-0.21%)
NETSOL 77.70 Decreased By ▼ -2.63 (-3.27%)
OGDC 79.03 Increased By ▲ 0.13 (0.16%)
PAEL 9.85 Decreased By ▼ -0.05 (-0.51%)
PIBTL 4.25 Decreased By ▼ -0.08 (-1.85%)
PPL 61.39 Increased By ▲ 0.11 (0.18%)
PRL 14.70 Decreased By ▼ -0.04 (-0.27%)
SILK 1.06 Decreased By ▼ -0.01 (-0.93%)
SNGP 42.40 Decreased By ▼ -0.30 (-0.7%)
TELE 7.15 Decreased By ▼ -0.17 (-2.32%)
TPLP 13.10 Increased By ▲ 0.13 (1%)
TRG 97.85 Decreased By ▼ -2.58 (-2.57%)
UNITY 15.22 Increased By ▲ 0.72 (4.97%)
WTL 1.19 Decreased By ▼ -0.02 (-1.65%)
BR100 4,195 Decreased By -16.9 (-0.4%)
BR30 14,551 Decreased By -54.1 (-0.37%)
KSE100 41,994 Decreased By -148.3 (-0.35%)
KSE30 14,857 Decreased By -86.8 (-0.58%)
Follow us

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved the grant of second two years’ renewal over Kirthar Exploration License Block after it was told that the government is taking various measures to reduce the challenge of the widening gap between energy supply-demand.

The ECC was informed that Pakistan is currently facing a serious challenge of the widening gap in energy supply-demand which is mainly attributed to the natural depletion of major oil/gas fields and the increase in demand and dearth of new big discoveries. To reduce this gap, the government is taking various measures. One such step pertains to the renewal of the exploration license to enable the company to perform exploration activities in the license area. The provision of renewal of license has been incorporated in the rules and policies announced from time to time.

The meeting was further informed that Directorate General Petroleum Concessions has received a request from M/s Polish Oil and Gas Company Limited (POGC) for entry into 2nd two-year renewal of Kirthar Exploration License (EL) and exemption from the condition of Rule 21(4)c of Pakistan Petroleum (Exploration and Production) Rules, 2001, to relinquish 10 per cent of the License area at the end of first Renewal. Kirthar EL is governed by Pakistan Petroleum (E & P) Rules, 2001. In the rules, the discretionary power for grant of renewal lies with the Government. The relevant renewal Rule 21(2) of Pakistan Petroleum Rules, 2001 stated that the government may, subject to the terms of the licence, grant up to two renewals.

Gas reserves discovered in Dadu, Sindh, says PPL

The term of each renewal shall be up to two years. However, to avail the renewal of maximum term of two years a reasonable work program comprising at least an exploration well shall have to be offered keeping in view the surface and geological conditions of the licence area.

A holder desiring to obtain such renewal shall make an application at least three months before the expiry of the licence or such lesser period as the DGPC may allow the company has also requested for exemption from the condition of Rule 21(4) c to relinquish 10 per cent of the license area at the end of first renewal, because the company wants to further explore the area for potential prospects.

The government in accordance the regulation of mines and oil fields and mineral development may exempt the company from the applicability of Rule 21(4)c. The case has been reviewed thoroughly taking into consideration the geological complexities of the license area, associated exploratory and operational risks, the significance of the geological and geophysical activities, the security situation of the area, and payment of all government dues and guarantees.

The Petroleum Division proposed to approve the request of the company for entry in to 2nd two years renewal of Kirthar EL, wef, 28-08-2022 in accordance with rule of Pakistan Petroleum (E&P) Rules, 2001, and grant exemption from the condition of Rule 21(4) c of the Rules 2001 to relinquish 10 per cent of the license area at the end of In Renewal in accordance with Section-5 of the Regulation of Mines and Oil fields and Mineral Development subject to that: M/s POGC will drill an exploratory well up to Pub Formation or till 2500 meters depth, whichever is shallower, during the 2ndRenewal period; the company will discharge/clear all financial obligations like training, social welfare, rental for the extended period and any leftover obligations within a fortnight from the approval.

Copyright Business Recorder, 2023


1000 characters

Kirthar exploration licence: ECC approves grant of second two-year renewal

Intra-day update: rupee largely stable against US dollar

Rs90bn allocated for parliamentarians under SDGs

Oil eases as weaker demand outlook returns to focus

PSDP: Govt takes firm step to revive certain CPEC initiatives

IT exporters, freelancers: 35pc of export proceeds can be retained in special forex accounts: SBP

IK and Qureshi meet, exchange wincing smiles

Finally, JKT launches new party to cash in on IK’s misery

Survey contains details of major socioeconomic indicators: MoF

NEC apprised about the key challenges facing economy

Sustainable Development Achievement Goals Programme: ECC approves Rs27bn supplementary grants