Staff Reporter Islamabad
The government awarded two exploration blocks to local oil and gas exploration and production companies in Punjab and Balochistan.
Following award of Nareli (MPCL Operated) and North Dhurnal (POL operated) blocks in January 2021 and completion of regulatory formalities, Petroleum Concession Agreements (PCAs) and Exploration Licenses (ELs) for the Blocks were signed by the Ministry of Energy (Petroleum Division) acting on behalf of President of the Islamic Republic of Pakistan, Provincial Representatives and Mari Petroleum Company Limited (MPCL), Pakistan Oilfields Limited (POL) and Spud Energy PTY Limited (SEPL).
Secretary Petroleum Division (Dr. Arshad Mehmood), Managing Director/CEO MPCL (Mr. Faheem Haider), Chairman/CEO POL (Mr. Shuaib A. Malik) and CEO SEPL (Mr. Muhammad Nadeem Farooq) signed the agreements. Mr. Hammad Azhar, Minister of Energy, also graced the occasion with his presence. The provincial representatives signed the PCAs as witnesses.
Government of Pakistan had provisionally awarded Nareli Block (3068-9) to MPCL as an Operator with 39% working interest, POL with 32% and SEPL with 29% as joint venture partners on January 15, 2021.
While North Dhurnal Block (3372-27) was awarded to POL as Operator with 60% working interest and MPCL as the joint venture partner with 40% working interest.
Provincial Holding Companies (Balochistan Energy Company Limited for Nareli Block and Punjab Energy Holding Company for North Dhurnal) would have an option for participation in the aforementioned Blocks at a 2.5% carried working interest.
Moreover, Government Holdings (Private) Limited, may opt to have 2.5% working interest on a full participation basis.