ISLAMABAD: The Ministry of Petroleum and Natural Resources Thursday signed 70 supplemental agreements (SAs) for conversion to petroleum concessions agreements (PCAs) aimed at expediting oil and gas exploration activities in potential areas of the country.
Briefing media persons after the signing ceremony, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said “as many as 70 SAs covering 94 leases have been executed, while remaining applications are also being reviewed and finalized on a fast track basis.”
He said the successive petroleum policies 2001, 2007 and 2009 provided option to the existing license/lease holders for conversion of SAs to PCAs.
“But no such SA could be signed which created mistrust of investors in government policies resulting in adverse impact on investment for exploration of oil and gas in the country,” he said.
He said Petroleum Exploration and Production Policy-2012, as amended in July 2013, also provided an incentive to existing licence/lease holders for the conversion.
Abbasi that said the ministry had revoked 10 licences and leases of different companies for not initiating exploration and production (E&P), while show 11 show cause notices had been served to other companies.
Director General (Petroleum Concessions) Saeedullah Shah said the incentives announced in the Petroleum Policy-2012 were not being provided to the existing licence/lease holders.
He said the Model Supplemental Agreement had been finalized in consultation with all stakeholders including the Petroleum Sector as well as ministries of Finance and Law and Justice.
