KARACHI: Pakistan Petroleum Limited (PPL) announced the approval of a 10-year Development and Production Lease (D&PL) for the Sui gas field, securing exclusive operational rights over a 455.80 sq. km area until May 31, 2025. This extension, effective from June 1, 2015, follows the expiration of the original 60-year Sui Mining Lease in 2015 and was granted under the Pakistan Onshore Petroleum (Exploration & Production) Rules, 2013.
Thank you for reading this post, don't forget to subscribe!According to PPL’s filing with the Pakistan Stock Exchange, total liabilities related to the lease, including Lease Extension Bonus, Production Bonus, and Social Welfare/Training Obligations, amount to Rs 52.5 billion as of September 30, 2024. The company plans to fulfill these obligations by May 2025, following a schedule approved by the Economic Coordination Committee (ECC).
PPL intends to seek additional extensions for the D&PL based on the field’s continued economic viability and production potential, aligning with federal regulations. The lease renewal will also enable PPL to formalize a Petroleum Concession Agreement (PCA) to meet its financial commitments under government oversight.
