In 1991, GOP introduced the first Petroleum Policy document. This was then followed by new Petroleum Policies of 1993, 1994, 1997, 2001, 2007 and 2009. Whenever previous policies were superseded by a subsequent Policy document, the existing rights granted under licences /Petroleum Concession Agreements (PSAs) / Production Sharing Agreements (PSAs) were not affected.
The 1997 Policy, while preserving the provisions of the 1994 Policy with respect to onshore areas, introduced a new offshore package of terms based on production sharing arrangements. Under the 1997 Policy, existing licence holders in offshore areas were given an option to convert their concession agreements into Production Sharing Agreements (PSAs).
The 1997 policy was replaced in 2001 by Petroleum Policy 2001, coupled with Petroleum (Exploration and Production) Rules 2001, a model offshore Production Sharing Agreement and a model onshore Petroleum Concession Agreement. In 2003 , a revised model offshore production sharing agreement was introduced complemented by the Offshore Petroleum (Exploration and Production) Rules 2003.
Policy 2009 had to be amended by this Petroleum Policy 2012 as the new market conditions warranted urgent changes required for investment promotion in view of increasing international energy prices. It also reflects the resolve of Government of Pakistan to accelerate exploitation of indigenous natural resources by attracting foreign investment with technology as well as promoting local companies to participate in E & P activities on a level playing field
There has been paradigm shift in the natural gas scenario due to higher trend of consumption of natural gas in the country and overall energy requirement was changing so therefore there was great need to bring new policy with additives. The purpose of this Petroleum Exploration and Production Policy 2012 is to establish the policies, procedures, tax and pricing regime in respect of petroleum exploration and production (E & P) sector.
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