Pakistan Petroleum Limited (PPL) has formalized agreements with the Federal Government of Pakistan to continue operations at the Sui Gas Field, securing a 10-year lease extension through a Development and Production Lease (D&PL) and a Petroleum Concession Agreement (PCA), according to a filing at the Pakistan Stock Exchange (PSX) on Friday.Â
PPL said that a development and production lease has been granted for the Sui Gas Field, covering an area of 455.80 square kilometers, situated in District Dera Bugti, Balochistan.Â
The lease has been granted for an initial term of ten (10) years, effective from 1st June 2015 to May 31, 2025, in accordance with Rule 30A of the Pakistan Onshore Petroleum (Exploration and Production) Rules, 2013. As per the rules, the lease remains eligible for further extension beyond its expiry date.
Additionally, PPL, a sole working interest owner of the Sui Gas Field, has executed a Memorandum of Agreement (MoA) with the Government of Balochistan at a formal signing ceremony held at the Sui Field on February 14, 2025.Â
Under this MoA, PPL has committed to implementing specific initiatives, including various social welfare initiatives under its Corporate Social Responsibility (CSR) program in accordance with the terms of Development and Production Lease and a Petroleum Concession Agreement.
The company is also obligated to make payments against the Lease Extension Bonus and fulfill other financial commitments under the D&PL and PCA. The future arrangements beyond May 31, 2025 will be mutually agreed upon within the validity period of the D&PL.Â
The agreement underscores PPL’s ongoing commitment to sustaining natural gas production at Pakistan’s largest gas field while engaging in social development initiatives for the local community.
Pakistan Petroleum Limited was incorporated in 1950 with the main objectives of conducting exploration, prospecting, development, and production of oil and natural gas resources.
