ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved the grant of additional (free) area of 15.88 sq kms in Soghri exploration license to the Oil and Gas Development Company Limited (OGDCL).
The Ministry of Energy submitted a summary to the ECC stating that the OGDCL has requested for grant of an additional (free) area of about 15.88 sq km in Soghri exploration license on the basis that a geological structure which is extending into a free area in the Northeastern part of Soghri exploration license (EL), where the company intends to drill an exploratory well.
The Ministry of Energy in a proposal to the ECC stated that Soghri Exploration License was granted to the OGDCL on 31-05-2006 over an area of 330.31 sq kms located in districts, Kohat and Attock.
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The meeting was told that the OGDCL has 100 percent shares in Soghri block and the work committed by the company included the acquisition of seismic data and the drilling of three exploratory wells. Against the aforementioned commitment, the company has acquired 722.52 L km and 786.36 sq km 3D seismic data and drilled two exploratory wells namely, Sahib Gul-1 and Soghri X-1 while one well is outstanding.
The request of the company has been examined in the light of prevailing petroleum rules and found that the geological structure is extending beyond the block boundary; therefore, the Petroleum Division recommends that the same may be granted to enable the company to discharge its outstanding commitments, under rule 21(6) of Petroleum Rules, 2001.
The petroleum rules 21 (6) 2001 reads that “notwithstanding anything contained in these rules, upon a written request of a holder, the government may, on a case-to-care basis, extend the term of the license based on technical considerations or revise the co-ordinate of the area covered under the license provided that the geological structure extends into an adjoining free area.
The ECC was informed that in the wake of the Mustafa Impex judgement of the Supreme Court, the term government is taken as federal cabinet constituting of the prime minister and federal ministries, therefore, approval of the Cabinet is required for grant of additional area in Soghri Block as per the map attached at.
The meeting was further stated that the prime minister as Minister Incharge for the Petroleum Division has authorised the submission of the summary before the ECC of the Cabinet; therefore, the ECC is requested to approve the proposal.
Copyright Business Recorder, 2023
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