PPL, GoB sign MoA to boost sui gas production

February 15, 2025 (MLN): Pakistan Petroleum Limited (PSX: PPL) and the Government of Balochistan (GoB) have reached a significant milestone by signing a Memorandum of Agreement (MoA) to advance the execution of the Petroleum Concession Agreement (PCA) for the Sui Development and Production Lease (D&PL).

The MoA was formally signed by PPL’s Managing Director & CEO Mr. Imran Abbasy and Secretary Energy Department, GoB, Mr. Muhammad Dawood Bazai.

Under this landmark agreement, PPL will contribute approximately Rs60 billion to the Government of Balochistan through Lease Extension Bonus, Production Bonus, and Social Welfare Obligations, as per the press release.

The first tranche of Rs36bn has already been presented to the Chief Minister, with the remaining payments scheduled for March and May 2025.

PPL, committed to corporate social responsibility (CSR), has invested Rs13.76bn in Balochistan over the past decade, including Rs2.72bn in 2023-24 alone.

These investments span across education, healthcare, infrastructure, and essential utilities such as free gas and water supply to the community.

Over the past ten years, PPL has provided gas worth Rs7.4bn and water worth Rs1.7bn to the residents of Sui.

Presently, the company supplies 4 MMscfd of gas and over 2mn gallons of water daily, significantly improving local living conditions.

Additionally, PPL has generated employment for approximately 1,500 individuals, with nearly 1,200 being local residents.

The MoA reinforces PPL’s dedication to sustainable development in Dera Bugti.

The signing ceremony, held in Sui, District Dera Bugti, was attended by Chief Minister of Balochistan Mir Sarfraz Bugti, Federal Minister for Planning, Development & Special Initiatives Mr. Ahsan Iqbal, Senator Shahzaib Durrani, Senator Danesh Kumar, senior government officials, dignitaries, and key stakeholders.

Beyond essential utilities, the company will offer educational scholarships, technical and vocational training through the Balochistan Technical and Vocational Training Authority (B-TEVTA), and contribute to healthcare and educational infrastructure rehabilitation in collaboration with GoB.

This agreement highlights PPL’s commitment to fostering socioeconomic progress, uplifting marginalized communities, and playing a pivotal role in the sustainable development of Balochistan.

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