Pakistan government approves D&P for Sui Gas Field to PPL

Pakistan government has approved the grant of a Development and Production Lease (D&PL) for the Sui Gas Field, covering an area of 455.80 square kilometers. This lease, held by the Pakistan Petroleum Limited with a 100% working interest, is effective for ten years from June 1, 2015, to May 31, 2025.

The original Sui Mining Lease (ML) expired in 2015 after 60 years. Subsequently, the Company applied to the Director General of Petroleum Concessions (DGPC) for a D&PL under rule 30(A) of the Rules.

As of September 30, 2024, the total liability related to Lease Extension Bonus, Production Bonus, and Social Welfare/Training Obligations stands at PKR 52.5 billion.

These obligations, along with future ones, are to be settled by May 2025 as per the Economic Coordination Committee (ECC) payment schedule.

The D&PL is eligible for extension, and given the economic and commercial production from the Sui Field, the Company plans to seek an extension in accordance with the Rules.

Pakistan Petroleum will now enter into the D&PL and Petroleum Concession Agreement (PCA), enabling it to fulfill its financial obligations as approved by the Federal Government and seek further extensions of the D&PL as per the regulations.