Karachi: Pakistan Petroleum Limited (PPL) announced on 14th February 2025 that it has successfully executed the Development and Production Lease (DandPL) and Petroleum Concession Agreement (PCA) with the Federal Government of Pakistan for the continued operations of the Sui Gas Field. This strategic move ensures the company’s prolonged engagement in one of Pakistan’s crucial energy production areas.
According to the letter dated 29th October 2024 issued by the competent authority, a DandPL has been granted to PPL for the Sui Gas Field, which spans an area of 455.80 square kilometers in District Dera Bugti, Baluchistan. The lease is initially set for a ten-year term, effective from 1st June 2015 to 31st May 2025, with eligibility for extension under Rule 30A of the Pakistan Onshore Petroleum (Exploration and Production) Rules, 2013. This commitment signifies PPL’s ongoing dedication to strengthening Pakistan’s energy infrastructure.
On the same date, a Memorandum of Agreement (MoA) was signed between PPL and the Government of Baluchistan at a formal ceremony at the Sui Field. As the sole working interest owner of the Sui Gas Field, PPL has pledged to implement a range of initiatives, including those aimed at social welfare, as part of its Corporate Social Responsibility (CSR) program. These initiatives align with the stipulations of the DandPL and PCA, reflecting PPL’s commitment to community engagement and development.
According to information available from the Pakistan Stock Exchange (PSX), PPL is obligated under the terms of these agreements to make payments related to the Lease Extension Bonus and fulfill other financial commitments. The future arrangements beyond 31st May 2025 will be determined within the DandPL’s validity period, adhering to the established Rules. This proactive approach ensures continuity and stability in PPL’s operations and contributions to the energy sector.
This information has been provided in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange Limited Regulations, ensuring transparency and effective communication with stakeholders within the designated market category.