Pakistan Petroleum Limited (PPL) has been granted a Development and Production Lease (D&PL) for the Sui Gas Field. The company announced this development to the Pakistan Stock Exchange on Monday.
The lease, approved by the competent authority, grants PPL a 100% working interest over the Sui Gas Field, covering an area of 455.80 square kilometers. The lease is valid for a ten-year period, effective from June 1, 2015, to May 31, 2025, in accordance with the Pakistan Onshore Petroleum (Exploration & Production) Rules, 2013.
The original Sui Mining Lease expired in 2015 after 60 years of operation. Following this, PPL submitted an application to the Director General Petroleum Concessions (DGPC) for the D&PL under rule 30(A) of the 2013 Rules.
As of September 30, 2024, PPL’s total liability related to the lease extension bonus, production bonus, and social welfare and training obligations amounts to Rs. 52.5 billion. This liability, along with future obligations, will be settled by May 2025, following a payment schedule approved by the Economic Coordination Committee (ECC).
The D&PL is eligible for extension under the current rules, and PPL plans to seek an extension of the lease period, given the economic viability and commercial production from the Sui Field.
PPL will now proceed to finalize the D&PL and Petroleum Concession Agreement (PCA), enabling it to fulfill its financial obligations as sanctioned by the Federal Government and pursue further lease extensions in line with the regulations.
