PPL Secures 10-Year Lease Extension for Sui Gas Field Amidst New Production Developments

Pakistan Petroleum Limited (PPL), a major oil and gas exploration firm, has received a Development and Production Lease (D&PL) for the Sui Gas Field for 10 years, covering 455.80 sq. km with a 100% working interest. The lease, approved by the competent authority, is effective from June 1, 2015, to May 31, 2025, under Pakistan Onshore Petroleum Rules, 2013. The Sui Gas Field, located in Dera Bugti, Balochistan, is home to the country’s largest gas compressor station and purification plant, remaining one of Pakistan’s largest natural gas-producing fields despite declining reserves.PPL disclosed that its original Sui Mining Lease expired in 2015 after 60 years, prompting an application to the Director General Petroleum Concessions (DGPC) for a D&PL under Rule 30(A). The company has a liability of Rs52.5 billion for lease extension bonuses, production bonuses, and social welfare/training obligations, which will be paid by May 2025 as per the Economic Coordination Committee’s approved payment schedule. PPL intends to seek further lease extensions based on the commercial viability of the field.Additionally, PPL commenced hydrocarbon production from the new Adhi South-9 well in Punjab’s Pothwar region. However, its profit-after-tax (PAT) for the quarter ending September 30, 2024, dropped by nearly 24% to Rs22.69 billion. The company declared an interim cash dividend of Rs2 per share (20%) on both ordinary and convertible preference shares for the year ending June 30, 2025.