PPL clinches eleven exploration blocks

Company commits 6,445 work units, equivalent to $64.45 million.

ISLAMABAD: Pakistan Petroleum Limited (PPL) won a provisional grant of 11 strategically-fit exploration blocks, offered in the latest bidding round held on March 10 at the Directorate General of Petroleum Concessions, Ministry of Petroleum and Natural Resources. The petroleum ministry had offered 58 exploration blocks in the latest bidding round.

The blocks won by PPL are located in Sindh, Punjab and Balochistan. The company has committed a total of 6,445 work units, which translates into a minimum financial obligation of $64.45 million; though actual investment will be significantly higher on discharging the work commitment, the company’s press statement said on Monday.

To engage a multinational exploration and production (E&P) company in the bidding round, PPL submitted two joint bids with OMV Pakistan Exploration. The Austrian E&P company will operate one of the two blocks, marking a first in recent years that a multinational E&P has ventured into the country as operator, a move likely to draw more multinationals to the local E&P sector.

PPL was instrumental in bringing OMV to Pakistan during the 1989 bidding round, and had since partnered with the company in successful ventures, including the Sawan, Miano, Latif and Tajjal fields.

Published in The Express Tribune, March 12^th, 2013.

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