The Economic Coordination Committee (ECC) of the Cabinet Thursday approved the proposed framework for the revival of revoked petroleum exploration licenses.
The meeting of the ECC, presided over by Finance Minister Ishaq Dar, considered the Petroleum Division’s summary on the revival of revoked petroleum exploration licenses.
It was informed that eleven exploration licenses were revoked due to non-performance of work commitment and non-payment of financial obligations by various exploration and production companies. In all the eleven blocks, status quo orders were passed by the respective Civil Courts, and Islamabad and Sindh High Courts.
The summary highlighted that the litigant companies have approached the government and shown keen interest in the exploration of the blocks awarded. In order to resolve this longstanding issue of litigation, which has resulted in the halting of exploration and production activities in some of the respective blocks of the country. After a detailed discussion, the meeting approved the proposed framework developed by the Petroleum Division for the revival of revoked licenses through an out-of-court settlement.
The ECC approved another summary of Petroleum Division for change of effective control from M/s Eni ULX Limited, M/s Eni UK Limited, and M/s Eni Oil Holdings B.V, in respect of its subsidiary companies i.e. M/s ENI Pakistan Limited, ENI Pakistan (AEP) Limited and ENI Pakistan (M) Limited, respectively to M/s Prime International Oil & Gas Company Limited (PIOGCL) subject to the condition that PIOGCL will be liable to the government for all the minimum work commitments and financial obligations and government’s revenues will not be adversely affected after this change of effective control.
The meeting also considered a summary of the Petroleum Division and allowed to grant a Development and Production Lease (D&PL) for (15) years w.e.f. 15-01-2022 over Kandhkot Mining Lease area on existing gas price and subject to the condition that M/s PPL will pay all the financial obligations in accordance with Petroleum Policy 2012.
The Kandhkot discovery was made by PPL in 1959. The government granted the mining lease over the Kandhkot gas field for 30 years in 1962 which was renewed for a further thirty years in 1992.
The meeting also approved a summary presented by the Ministry of Commerce for amendment in Import Policy Order 2022 to allow the import of the Holy Quran subject to a no-objection certificate (NOC) from the relevant federal or provincial authority.
The committee approved another summary of the Ministry of Commerce seeking amendment in the earlier decision of the ECC on Regionally Competitive Energy Rates for Export Oriented Sectors during FY 2022-23 and allowed an amendment that “the electricity tariff will be effective from 1st August 2022, whereas RLNG tariff will be effective from 1st July 2022.”
The summary of the Ministry of National Health Services, Regulations, and Coordination regarding the increased in Maximum Retail Price (MRPs) of paracetamol products was also approved.
The ECC considered and approved a summary of the Ministry of Industries and Production and allowed the payment of a projected net salary of Rs. 1,378 million for the fiscal year 2022-23 to be disbursed every month to Pakistan Steel Mills (PSM) employees through a technical supplementary grant.
The committee also approved technical supplementary grants of Rs. 30,888 million in favor of the Defence Division and Rs. 1000 million for the Ministry of Housing and Works.
Federal Ministers Tariq Bashir Cheema, Naveed Qamar, Khurram Dastgir Khan, Makhdoom Syed Murtaza Mehmood, Minister of State for Petroleum Musadik Malik, SAPM on Finance Tariq Bajwa, and former prime minister Shahid Khaqan Abbasi also attended the meeting.
