ISLAMABAD, June 28: Federal government on Saturday granted two licences to Pakistan Oilfields Limited (POL) to explore petroleum resources in Block No. 3272-11 (Chakwal) in Zone-I in Chakwal district of Punjab and Block No. 2567-3 (Hyderabad) in Zone-III in Hyderabad and Dadu districts of Sindh with 370.36 square kilometres and 2,221.33 square kilometres, respectively.

POL, a public limited company listed at the stock exchanges in Pakistan, according to an official statement, has made a firm commitment to invest $350,000 in Hyderabad block for an exploration programme comprising review of geological and geophysical data, acquisition, processing and interpretation of seismic data.

In addition, the company may carry out an optional re-entry or drilling of one exploration well during the initial three-year term. In Chakwal block, their minimum work obligation includes review of geological and geophysical data and a re-entry of well in the first three years at a cost of $270,000.

The oldest oil company of Pakistan, POL, is currently operating nine D & P Leases and three exploration licences. It has working interest in 22 areas including its own operated and non-operated joint ventures as well as international joint venture participation.

The POL was the third largest oil producer of Pakistan and its daily production, it was stated at the agreement signing ceremony, was about 10,000 barrels of oil, 40 mmcf of natural gas, 114 tons of LPG, 185 barrels of solvent oil and 10 tons of sulphur.

The licences and petroleum concession agreements were signed by the secretary, Ministry of Petroleum and Natural Resources, on behalf of the President of Pakistan, Mr G.A. Sabri, Director General, Petroleum Concessions, and Mr Shuaib Anwar Malik, Chairman and Chief Executive of POL.