KARACHI: The Pakistan Petroleum Limited (PPL) has disclosed that the competent authority has approved grant of Development and Production Lease (D&PL) over the Sui gas field to the company (100 percent working interest), covering an area of 455.80 sq. km, for a period of ten years, effective from 1st June 2015 to 31st May 2025, in accordance with the Pakistan Onshore Petroleum (Exploration & Production) Rules, 2013 (the “Rules”).
The original Sui Mining Lease (ML) had expired in 2015 after completion of sixty (60) years and the Company had submitted an application to Director General Petroleum Concessions (DGPC) for the grant of a D&PL over Sui Field under rule 30 (A) of the Rules, material information sent to Pakistan Stock Exchange on Monday said.
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The total liability, as of 30th September 2024, on account of Lease Extension Bonus, Production Bonus and Social Welfare / Training Obligations is Rs 52.5 billion. This liability along-with the obligations for future period will be paid up till May 2025 as per the payment schedule approved by the Economic Coordination Committee (ECC), it added.
Under the Rules, the D&PL is eligible for extension and given the economics and commercial production from the Sui Field, the Company plans to pursue an extension of the lease period in accordance with the Rules.
The company will now enter into the D&PL and Petroleum Concession Agreement (PCA) enabling it to discharge its financial obligations as approved by the Federal Government and seek further extensions of the D&PL in accordance with the Rules, the information said.
Copyright Business Recorder, 2024
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