PHOTO: FILE
QUETTA: Balochistan will now get Rs74 billion per annum in royalty in connection with the Rs7.5 billion it is getting from the lease of Sui gas field after a new 10-year lease agreement with Pakistan Petroleum Limited (PPL).
According to the new deal, the province and PPL will sign on Friday (today), the company will continue supply of free of charge natural gas to Sui Town, give jobs to local people and provide health, education and other facilities, Secretary Energy Department Khaleeq Nazar Kiyani told the provincial cabinet.
Boosting revenues: Balochistan demands increase in Sui gas price
The provincial government of Balochistan has agreed to extend the lease of Sui gas field for PPL for another 10 years. “The agreement will protect the rights of the people of Dera Bugti,” Balochistan Chief Minister Sanaullah Zehri told his cabinet.
Kiyani, explaining the details of the deal, told the meeting that PPL had acquired a 30-year lease of Sui gas field in 1954, which was renewed for another 30 years in 1983. Moreover, PPL will spend Rs20 billion for exploration of new reservoirs of oil and gas, he said.
Published in The Express Tribune, May 20th, 2016.
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