Govt renews E&P licence to boost output
ISLAMABAD: The government has renewed a Polish energy firm’s ploration license for the second time in a bid to boost the country’s oil and gas production. It also approved the exemption from the condition of giving up 10% of the license area at the end of the first license renewal.
So far, the Polish company has failed to start hydrocarbon exploration to meet the country’s growing energy demand. The government approved the renewal and granted relief after the company approached it at the end of the first renewal.It is government policy that oil and gas exploration and production (E&P) companies have to surrender 10% of their license area if they fail to start exploration by the end of the first renewal.
However, he exempted the Polish firm from this condition, taking into account that the country was facing an oil and gas crisis and companies were even prohibited from opening letters of credit (LC) for oil imports due to lack of USD.
Sources told The Express Tribune that the Petroleum Division has received an application from the Polish Oil & Gas Company seeking a second two-year renewal for Kithara Exploration License Block 2,667-7 with the objective of boosting oil and gas production.The division referred the request to the Economic Coordination Committee (ECC) of the cabinet in a meeting held on March 30.
It told the ECC that the Directorate General of Petroleum Concessions (DGPC) has received a request from the Polish oil and gas company to enter into the second two-year renewal of the Kithara exploration license and exemption from the condition of rule 21(4 )c from Pakistan. The Petroleum (Exploration and Production) Rules, 2001 to surrender 10% of the license area at the end of the first renewal.
As per the rules, the discretionary pot he Petroleum Division told the ECC that the government under Section 5 of the Regulation of Mines, Deposits and Mineral Development (Government Control) Act 1948 can exempt the company from the applicability of rule 21(4)c.
