Federal Minister for Energy, Muhammad Hammad Azhar, graced the signing ceremony of Petroleum Concessions/Exploration Licenses of six oil and gas blocks at Petroleum Division today.
Director-General Petroleum Concession Petroleum Division granted Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) over Block No. 3068-6 (Killa Saifullah) and Block No.3067-7 (Sharan) with Oil & Gas Development Company Limited (OGDCL) and Mari Petroleum Company Limited (MPCL), Block No. 3069-9 (Suleiman) with OGDCL and Pakistan Petroleum Limited (PPL) and Block No. 2467-17 (Sujawal South), Block No.3273-5 (Jhelum) and Block No.3272-16 (Lilla) with OGDCL.
The Minister for Energy (Petroleum Division) stated that these efforts would bear fruit for the country in the form of additional hydrocarbon reserves during the next few years.
The Minister expressed that the execution of the Exploration Licenses and PCAs will not only enhance investment in the petroleum sector but will also contribute to bridging the energy demand and supply gap.
DG (PC) highlighted that the minimum firm work commitment for these blocks is $24.68 million for three years. Companies are obligated to spend a minimum of $30,000/year in each block on social welfare schemes.
The annual social welfare obligation in respect of these six blocks is $180,000.
Killa Saifullah Block, covering an area of 2421.96 sq. km, is located in the district of Killa Saifullah, while Sharan Block, covering an area of 2497.89 sq. km, is located in the districts of Killa Saifullah and Zhob and Suleiman Block, covering an area of 2172.89 sq. km, is located in Musakhel, Zhob, Killa Saif Ullah and Loralai Districts. Sujawal South, covering an area of 1914.1 sq. km, is located in Sujawal District. Jhelum Block, covering an area of 1524.65 sq. km, is located in the districts of Jhelum, Gujrat, and Mandi Bahauddin, while Lilla Block, covering an area of 2361.12 sq. km, is located in Chakwal, Jhelum, and Khushab Districts.
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 (41 percent) and Gas (36 percent) of the total reserves in the country.
Its percentage share of total Oil and Gas production in Pakistan is 47 percent and 29 percent, respectively. OGDCL is the operator of forty-one (41) exploration licenses and working interest owners in six other exploration blocks operated by various E&P companies.
OGDCL is currently producing 35,805 BOPD of Oil, 1012 MMCFD of Gas, 761 million tons of LPG, and 53 million tons of Sulphur per day.
PPL is also a Public Limited Company engaged in exploration and production activities in the country. PPL is Pakistan’s oldest and largest exploration and production company incorporated during 1950.
Its percentage share of total Oil and Gas production in Pakistan is 13 percent and 19 percent, respectively. PPL is the operator in 26 Exploration Licenses and working Interest owners in 17 other exploration blocks operated by various E&P companies.
PPL is currently producing 10,076 BOPD of Oil, 673 MMCFD of Gas, and 238 million tons of LPG.
MPCL is primarily an exploration and production company in the upstream segment of the petroleum industry. Its principal business activities include oil and gas exploration, drilling, field development, production, and distribution of hydrocarbons (including natural gas, crude oil, condensate, and LPG) and provision of E&P-related services on a commercial basis.
Mari Petroleum is an integrated exploration and Production Company currently managing and operating Pakistan’s largest gas reservoir at Mari Gas Field, Daharki, Sindh. MPCL is the second-largest gas producer in the Country, with 753 MMCFD Gas and 1,722 BOPD oil.
MPCL is the operator in six Development & Production Leases, 11 Exploration Licenses, and working Interest owners in seven other exploration blocks operated by various E&P companies.
These Exploration Licenses and PCAs were signed by Secretary Petroleum Division, Mian Asad Hayaud Din, Director General Petroleum Concessions on behalf of Government of Pakistan, Abdul Jabbar Memon, Managing Director OGDCL, Shahid Saleem Khan, Managing Director MPCL, Faheem Haider, and Managing Director PPL, Moin Raza Khan.
