Ministry of Energy (Petroleum Division)

Government of Pakistan on 28th February 2014 executed 08 more Petroleum Concession Agreements (PCAs) and 08 Exploration Licences (ELs)



The Ministry of Petroleum & Natural Resources after taking all provinces on board in finalizing Model Petroleum Concession Agreement (MPCA) and Model Exploration Licence (MPCA), awarded   50 blocks on provisional basis to   nine   E & P companies on 21.01.2014. Out of which 21 blocks are falling in Balochistan, 15 in Punjab,  6 in  Sindh and 8 blocks in Khyber Pakhtunkhwa Province. The Ministry has already signed (20) ELs  and PCAs  in  February, 2014. 

 2.        The Government of Pakistan on 28th February 2014 executed 08 more Petroleum Concession Agreements (PCAs) and 08 Exploration Licences (ELs) over Block No. 2867-5 (Kuhan) and 2866-4 (Margand) with M/s OMV (Pakistan) Exploration Gesellschaft m.b.H (OMV) and Pakistan Petroleum Limited (PPL), block No. 3369-1 (Orakzai), 3170-7 (Hetu)  and 2868-7 (Zorgarh) with  Oil & Gas Development Company Limited (OGDCL),  block No.  2569-5 (Khipro East) with PPL, block No. 3169-4 (Baska North) and 3271-6 (Potwar South) with Al-Haj Enterprises (Pvt) Ltd  (AL-Haj). The Kuhan block will be operated by OMV while Margand block will be operated by PPL.

3.         The present Government is giving high priority to develop indigenous hydrocarbon resources to minimize the demand and supply gap. Due to the untiring efforts of Ministry of Petroleum & Natural Resources and especially by the DGPC and his team and keen interest generated by the investment friendly and attractive policies, since taking over by the current government 73 numbers of wells have been spuded and 18 discoveries have been made so far. The oil production in the country has crossed 90,000 bbl per day of oil on 26.02.2014, which is the highest oil production level achieved so far.  

4.         Orakzai block is located in Kurram Agency, Orakzai Agency and Hungo district of Khyber Pakhtunkhwa,  Hetu block is located in Bhakkar and  Mianwali districts of Punjab  and D.I.Khan district of KPK, Zorgarh block  is located in Ghotki, Kashmore districts of Sindh, Dera Bugti and Jaffarabad districts of Balochistan and  Rajanpur district of  Punjab,  Margand block is located in Khuzdar district of Balochistan and Dadu district of Sindh, Khipro East block is located in Sanghar and Umer Kot districts  of Sindh, Kuhan block is located in Khuzdar, Jhal Magsi, Bolan and Kallat districts of Balochistan, Baska North block is located in D.I.Khan and  Tank districts of KPK, Zhob district of Balochistan and South Waziristan Agency and Potwar


South block is located in Chakwal, Khushab and Mianwali districts of Punjab. The total area of aforesaid blocks is 18,852.64  Sq. Km and minimum firm work commitment is US $ 60.73  Million. Apart from minimum work commitment, companies are obligated to spend a minimum of US $ 30,000/year in each block on social welfare schemes. 


5.          OMV (Pakistan) Exploration Gesellschaft m.b.H, existing under the laws of Austria,  a 100% owned subsidiary of OMV Aktiengesellschaft, started exploration activities in the Province of Sindh in 1991. The first significant gas discovery was made at Miano in Sukkur district of  Sindh province in 1993, followed by the Sawan discovery in 1997. Further discoveries, Latif and Tajjal gas fields were made in 2007. In 2011, OMV Maurice Energy Limited acquired Petronas Carigali Pakistan Limited. At present, OMV holds working interest in eight exploration Blocks in Pakistan and is Operator of five D & P leases. OMV is currently producing 2648 barrels of Oil and  375 MMCF of gas per day.

6          Al-Haj is the new Local E & P Company.  Whereas, OGDCL is a Public Limited Company engaged in Exploration & Production activities in the country for the last four decades. OGDCL holds the largest share of Oil (58%) & Gas (42%) of the total reserves in the country. Its percentage share of total Oil & Gas production in Pakistan is 52% and 27%, respectively. In addition, OGDCL is the Operator in 45 exploration licences and working interest owner in 6 other exploration blocks operated by various E & P companies. OGDCL is currently producing 44,584 barrels of Oil, 1181 MMCF of gas, 84 metric tons of LPG and 96 metric tons of Sulphur per day.

7.         PPL is Pakistan’s oldest Exploration & Production company, which was incorporated during 1950. Presently, PPL is the operator of 24 different exploration blocks and working interest owner in 16 other exploration blocks operated by various E & P companies.    PPL is operator of six producing fields namely Sui, Kandhkhot, Mazarani, Adam, Adhi and Chachar with the total daily production of 665 MMCF of gas, 6640 barrels oil and 162 metric tons of LPG.

8.         The execution ceremony was graced by Mr. Shahid Khaqan Abbasi , Minister for Petroleum & Natural Resources, Mr. Jam Kamal Khan, State Minister for Petroleum & NR and Mr. Zahid Muzaffar, Advisor to Ministry of  Petroleum & Natural Resources with their presence. The respective ELs and PCAs were signed by Mr. Abid Saeed, Secretary Petroleum and Natural Resources, Mr.Saeedullah Shah, Director General Petroleum Concessions, Mr. Erwin Kroll, Senior Vice President of Middle East and Caspian Region, OMV, Mr. Riaz Khan, Managing Director, OGDCL, Mr. Asim Murtaza, Managing Director, PPL, Mr.   Taj Muhammad Afridi, Chief Executive Officer, Al-Haj  and Directors from concerned Provinces.