PPL secures 10-year lease for Sui Gas field

November 04, 2024 (MLN): Pakistan Petroleum Limited (PSX: PPL) has received approval for the grant of a Development and Production Lease (D&PL) over the Sui Gas Field, covering an area of 455.80 square kilometers, for a period of ten (10) years, effective from June 1, 2015, to May 31, 2025.

This approval is in accordance with the Pakistan Onshore Petroleum (Exploration & Production) Rules, 2013, and PPL holds a 100% working interest in the field.

The original Sui Mining Lease (ML) expired in 2015 after the completion of sixty years and the company submitted an application to Director General Petroleum Concessions (DGPC) for the grant of a D&PL over Sui Field.

The total liability, as of September 30, 2024, on account of the Lease Extension Bonus, Production Bonus and Social Welfare / Training Obligations is Rs52.5 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).

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.

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.

Copyright Mettis Link News