ISLAMABAD: Wintershall AG Oil Company of West Germany will explore 10,000 sq miles of offshore and onshore areas in Thatta and Karachi districts under an agreement signed by the company and the Government of Pakistan here today [June 13].

The company will explore oil in Thatta and Karachi areas under two separate licences. It will spend a minimum of Rs five million in each area in the first year. After four years of exploration, Wintershall will be given one or more prospecting licences for an initial period of three years and will be required to spend a minimum of Rs2,500 per square mile for this purpose.

During the first year of the prospecting licence, Wintershall will have to spend a minimum of Rs ten million. They were considered to be very favourable terms for Pakistan ... The Government will acquire 7.5 per cent of the working interest from the very start. It will have the option to require Wintershall to assign to the Government 32.50 per cent of the total working interests, from the date of commercial discovery, which will give the Government 40 per cent interest in oil production. — Agency

Published in Dawn, June 14th, 2019