Pakistan Petroleum Limited (PPL), an oil and gas exploration firm, has executed the Sui Development and Production Lease (D&PL) and Sui Petroleum Concession Agreement (PCA) with the government for continued operations of the Sui Gas Field.
The E&P, a key supplier of natural gas in the country, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“We are pleased to announce the execution of the D&PL and the PCA with the Government of Pakistan for continued operations of the Sui Gas Field,” read the notice.
PPL stated that in October 2024, a D&PL was granted for the Sui Gas Field, covering an area of 455.80 square kilometres, situated in Dera Bugti district, Balochistan.
PPL secures 10-year lease for Sui Gas Field
“The lease has been granted for an initial term of ten years, effective from 1st June 2015 to 31st May 2025, in accordance with Rule 30A of the Pakistan Onshore Petroleum (Exploration and Production) Rules, 2013. Pursuant to the rules, the D&PL is eligible for extension,” added the company.
It is pertinent to mention that the Sui Gas Field, located in Balochistan, hosts the country’s largest gas compressor station and purification plant.
Despite diminishing reserves over time, Sui Gas Field remains one of the largest natural gas-producing fields in the country.
Additionally, the company, a sole working interest owner of the Sui Gas Field, has executed a Memorandum of Agreement (MoA) with the Government of Balochistan on 14th February 2025.
Under this MoA, the company has committed to implement initiatives, including various social welfare initiatives under its Corporate Social Responsibility (CSR) program under the terms of D&PL and PCA, read the notice.
“The company is obligated to make payments against the lease extension bonus and fulfill other financial commitments under the D&PL and PCA. The future arrangements beyond 31st May 2025, will be mutually agreed within the validity period of the D&PL, in accordance with the rules,” it concluded.
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