ISLAMABAD: Two summaries for amendments to Petroleum Policy 2012 were placed before the Council of Common Interests (CCI) for approval in its meeting held on January 29, 2024.

According to the Petroleum Division, the following amendments have been approved for enhancing exploration activities in the country: Provision of another opportunity to E&P Companies to opt for the Policy 2012.

Zone I (F) price incentives as notified vide SRO 47(I)/2020 dated 28 January 2020 to be offered to existing licenses and D&P leases for new exploration efforts. Effective date for conversion shall be date of notification after approval by the CCI.

Re-grant of Lease till the end of Economic Life of the Field, provided that beyond 30 years, the lease holders agree to pay 15 per cent additional wellhead value. The amount collected will be equally divided between the federal government and provincial government concerned.

Provision of right to E&P companies to sale up to 35 per cent of their share of pipeline specification gas to third party having OGRA license, through competitive process, without approval of the government or any of its entity, provided that the price(s) charged from third parties would not be less than the wellhead gas prices under Petroleum Policy 2012 for the respective zones.

This provision will also apply to all existing licenses/leases granted under Petroleum (E&P) Rules 1986, 2001, 2009, and 2013 for the gas discoveries which are not yet allocated and will be allocated after date of notification pursuant to CCI approval.

Copyright Business Recorder, 2024