Sui Gas Field Lease Extension: Pakistan Petroleum Limited Secures 10-Year Agreement

Pakistan Petroleum Limited (PPL) has secured a 10-year lease extension for the Sui Gas Field, ensuring continued natural gas production under a Development and Production Lease (D&PL) and a Petroleum Concession Agreement (PCA) with the federal government, according to a filing at the Pakistan Stock Exchange (PSX) on Friday.

PPL announced that the Sui Gas Field lease extension covers 455.80 square kilometers in Dera Bugti, Balochistan, and has been granted for an initial 10-year term, effective from June 1, 2015, to May 31, 2025, under Rule 30A of the Pakistan Onshore Petroleum (Exploration and Production) Rules, 2013. As per regulations, the lease remains eligible for further extensions beyond its expiry date.

Additionally, PPL, the sole working interest owner of the Sui Gas Field, has signed a Memorandum of Agreement (MoA) with the Government of Balochistan at a formal ceremony held at Sui Field on February 14, 2025.

Under the MoA, PPL has committed to implementing corporate social responsibility (CSR) initiatives, including various social welfare projects in accordance with the terms of the Development and Production Lease and Petroleum Concession Agreement.

Furthermore, the company is obligated to make payments against the Lease Extension Bonus and fulfill other financial commitments under the D&PL and PCA. Future arrangements beyond May 31, 2025, will be determined within the lease validity period.

The agreement reflects PPL’s ongoing commitment to maintaining natural gas production at Pakistan’s largest gas field while supporting regional development initiatives.

Pakistan Petroleum Limited was incorporated in 1950 with the primary objective of exploring, prospecting, developing, and producing oil and natural gas resources across Pakistan.