Margala Block: Transfer of 30pc working interest of MOL to MPCL approved by ECC

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved transfer of 30 per cent working interest of MOL Pakistan to Mari Petroleum Company Limited (MPCL) in Margala Block.

The ECC meeting presided over by Finance Minister Ishaq Dar considered a summary of the Ministry of Energy (Petroleum Division) on assignment of working interest in exploration licenses blocks and approved transfer of 30 per cent working interest of MOL to Mari Petroleum Company Limited (MPCL) in Margala Block.

The ECC was informed that the performance guarantee will be required from the company once this assignment is approved and once the acquiring company becomes the right holder in Margala exploration license. The ECC meeting was informed that Margala Block is governed by Pakistan Petroleum Exploration and Production Rules, 2001.

The meeting was further told that the MPCL has been operating in Pakistan since 1954 and has working interests in 23 exploration licenses and 15 development and production leases. MOL has cleared all its financial obligations, the ECC was told.

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The Directorate General Petroleum Concession (GDPC) has received request for assignment of 30 per cent working interests in Margala Block from MOL Pakistan to the MPCL. The company has also submitted the draft deed of assignment for the same.

Margala Block is governed by Pakistan Petroleum Exploration and Production Rules, 2001. The request for assignment and the draft Deed of Assignment (DoA) are well in line with the provisions of applicable rules. Rules of Pakistan Petroleum (E&P) Rules, 2001 require the prior approval of the government for any such assignment.

The ECC also considered a summary of Ministry of Maritime Affairs and approved Technical Supplementary Grant in aid of Rs822.750 million enabling Gwadar Port Authority (GPA) to disburse the amount of Rs250,000 per head to 3,291 fishermen registered with Balochistan Fisheries Department for the purchase of boat engines.

The ECC approved Technical Supplementary Grant in aid of Rs200 million in favour of Ministry of National Health Services, Regulation and Coordination for Ghurki Trust teaching Hospital (GTTH), Lahore. Ghurki Trust teaching Hospital (GTTH) is a tertiary care non-profit organization providing “State of the Art” health facilities to the needy & poor patients.

The ECC deferred a summary submitted by the Ministry of Energy (Petroleum Division) for foreign exchange coverage to PSO and directed the Ministry of Energy to resubmit the summary after reviewing the numbers.

The meeting was attended by Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for National Health Services, Regulations and Coordination Abdul Qadir Patel, Shahid Khaqan Abbasi MNA/ former prime minister, Minister of State for Finance and Revenue Dr Aisha Ghaus Pasha, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, SAPM on Government Effectiveness Dr Muhammad Jehanzeb Khan, Coordinator to Prime Minister on Commerce and Industry Rana Ihsan Afzal, Coordinator to PM on Economy Bilal Azhar Kiyani, federal secretaries, and senior officers attended the meeting.

Copyright Business Recorder, 2022