ISLAMABAD: The Federal government has approved reviving 11 licenses in a bid to boost oil and gas production in the country and generate revenues in foreign currency.
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Multiple media reports quoted sources in the petroleum division saying that the government approved a framework for the revival of 11 revoked licences through an out-of-court settlement. The federal government hopes that this move will result in roughly $ 100 million worth of investment in 11 exploration blocks while after the restoration of these licenses the national exchequer will receive approximately $ 5 million within next three months, besides generating job opportunities for more than 5000 people.
Among these, five licences belong to the Dewan group, five others to Pakistan Exploration Limited (PEL) and another to Oil and Gas Investment Company.
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Sources said the E&P companies would be offered gas price in line with the petroleum policy 2012, following the signing of supplemental agreements with the government.
Reports claimed that in a recent cabinet meeting, briefed that the government had granted exclusive petroleum exploration licences for an initial period of five years through a competitive bidding process. However, the licences were revoked mainly because the companies failed to undertake the committed work programmes during the stipulated time period and did not meet financial obligations to fulfil the goals of social welfare, training, rent and production bonus.
But the companies approached a civil court in Islamabad and the Sindh High Court and obtained status quo orders for the 11 exploration blocks.
The petroleum division apprised the cabinet that as the cases were being pursued in the courts for early decisions, the litigant companies had also expressed keen interest in exploration work.
A framework for the revival of revoked licences through an out-of-court settlement was earlier submitted to the Economic Coordination Committee (ECC) of the cabinet for consideration and approval. And, after getting ECC nod, the Petroleum Division sought fresh approval of the prime minister as minister in charge of the Petroleum Division for submission of a summary to the cabinet while later, the framework was submitted to the cabinet for its consideration and approval.
