12 Petroleum Concession Agreements signed

Islamabad, February 10, 2014 (PPI-OT): The Government of Pakistan on 10th February 2014 has executed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) over Block No. 2970-7 (Ladhana), Block No. 3071-4 (Fatehpur), Block No. 2768-11 Ranipur), Block No. 2469-9 (Armala), Block No. 3371-17 (Baratai), Block No. 2564-4 (Rasmalan), Block No. 2564-3 and Parkini Block-b with oil and Gas Development Company limited (OGDCL) and Block no.2864-2 (Nausherwani), 2566-6 (Bela west), 3272-18 (karsal), 3372-23 (Hisal) and 2870-5 (Sadiqabad) with Pakistan petroleum limited (PPL).

The Minister for Petroleum and Natural Resources has appreciated the hard work of Directorate General of Petroleum Concessions for preparing and finalizing 12 exploration licences and 12 Petroleum concessions agreements within one week after provisional awards.

He further added that these efforts will bear fruit for the country in the form of additional hydrocarbon reserves during next few years. The Minister is of the firm opinion that execution of the els/pcas will not only attract new investment in the petroleum sector but also a bridge the gap between energy demand and supply.

Ladhana block located in Leah, Muzaffargarh and Multan Districts of Punjab, Fatehpur block is located in Leah, Muzaffargarh, Khanewal and Multan Districts of Punjab, Ranipur block is located in Khairpur, Larkana and Nausheroferoz districts of Sindh province, Armala block is located in Thar Parker district of Sindh province, Bratai block is located in Kohat district of KPK Province, Rasmalan block is located in pasni, awaran and lasbela districts of Balochistan province, parkini block-b is located in awaran and pasni districts of Balochistan province, nausherwani block is located in kharan districts of Balochistan, Bela west block is located in Khuzdar, awaran and lasbela districts of Balochistan, karsal block is located in Chakwal district of Punjab province, Hisal block is located in Attock, Chakwal and Rawalpindi districts of Punjab province, Sadiqabad block is located in Rahimyar Khan district of Punjab province. the total area of aforesaid blocks is 22619.3 sq. km and minimum firm work commitment is us $ 176 million. Apart from minimum work commitment, companies are obligated to spend a minimum of us $ 30,000/year in each block on social welfare schemes.

OGDCL is a Public Limited Company engaged in Exploration and Production activities in the country for the last four decades. OGDCL holds the largest share of oil (58%) and gas (42%) of the total reserves in the country. its percentage share of total oil and gas production in Pakistan is 52% and 27%, respectively. in addition, OGDCL is the operator in thirty four (34) exploration licences and working interest owner in 6 other exploration blocks operated by various e and p companies. OGDCL is currently producing 43,807 barrels of oil, 1145 MMCF of gas, 85 m. Tonnes of LPG and 96 m. Tonnes of Sulphur per day.

PPL is Pakistan’s oldest and largest exploration and production company, which was incorporated during 1950. Presently, PPL is the operator of 16 different exploration blocks and working interest owner in 16 other exploration blocks operated by various e and p companies. PPL is operator of five producing fields namely Sui, Kandhkhot, Mazarani, Adhi and Chachar with the total daily production of 684 MMCF of gas, 7100 barrels oil and 157 metric tons of LPG.

The execution ceremony was graced by Mr. Shahid khaqan Abbasi , Minister for Petroleum and Natural Resources, Mr.Jam Kamal Khan, State Minister for Petroleum and Natural Resources and Mr. Zahid Muzaffar, Advisor to Ministry of Petroleum and Natural Resources with their presence. The respective ELs and PCAs were signed by Mr. Abid Saeed, Secretary Petroleum and Natural Resources, Mr. Saeedullah Shah, Director General Petroleum Concessions, Mr. Riaz Khan, Managing Director, OGDCL, Mr. Asim Murtaza, Managing Director, PPL and Directors from concerned Provinces.

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