PPL secures development and production lease for Sui Gas Field with 100% stake

Pakistan Petroleum Limited (PPL) has announced that the competent authority has approved a Development and Production Lease (D&PL) over the Sui Gas Field to the company with 100% working interest, according to a stock filing on Monday. 

The lease, covering an area of 455.80 square kilometres, is granted for a period of 10 years, effective from June 01, 2015, to May 31, 2025, under the Pakistan Onshore Petroleum (Exploration & Production) Rules, 2013. 

The original Sui Mining Lease expired in 2015 after completion of sixty (60) years and the company had submitted an application to Director General Petroleum Concessions (DGPC) for the grant of a D&PL over Sui Field under rule 30(A) of the Rules. 

The total liability, as of 30th September 2024, on account of the Lease Extension Bonus, Production Bonus and Social Welfare / Training Obligations is Rs 52.5 billion. 

This liability along with the obligations for future periods 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 in accordance with the rules. 

Pakistan Petroleum Limited 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.