Two summaries for Amendments in Petroleum Policy 2012 were placed before a meeting of the Council of Common Interests on January 29, 2024, for approval.
The amendments were proposed to encourage the exploration of new reserves of oil and gas.
The following amendments have been approved for enhancing exploration activities in the country:
- Provision of another opportunity to E&P Companies to opt for the Policy 2012.
- Zone I(F) price incentives as notified vide SRO 47(I)/2020 dated 28 January 2020, are to be offered to existing licenses and D&P leases for new exploration efforts. The effective date for conversion shall be the date of notification after approval by the CCI.
- Re-grant of Lease till the end of the Economic Life of the Field, provided that beyond 30 years, the leaseholders agree to pay 15% additional wellhead value. The amount collected will be equally divided between the Federal Government and the Provincial Government concerned.
- Provision of right to E&P companies to sell up to 35% of their share of pipeline specification gas to a third party having OGRA license, through a competitive process, without the approval of the government or any of its entity, provided that the price(s) charged from third parties would not be less than the wellhead gas prices under Petroleum Policy 2012 for the respective zones.
This provision (d) will also apply to all existing licenses/leases granted under Petroleum (E&P) Rules 1986, 2001, 2009, and 2013 for the gas discoveries which are not yet allocated and will be allocated after the date of notification under CCI approval.
The importance of the domestic petroleum industry to the economy of Pakistan is a core issue of national security, and national self-reliance and as a major source of government revenue.
The purpose of this Petroleum Exploration and Production Policy 2012 (Policy) is to establish the policies, procedures, tax, and pricing regime in respect of the petroleum exploration and production (E&P) sector.