ISLAMABAD, March 22: The government on Tuesday granted two Petroleum Exploration Licences to Pakistan Petroleum limited over Block Nos 2866-2 (Kalat) and 2568-15 (Tajpur) covering an area of 2482.14 and 112.36 square kilometres respectively. The Kalat area lies in districts Kalat and Khuzdar of Balochistan province (Zone-11), whereas Tajpur area falls in district Hyderabad of Sindh province (Zone-III). According to a press release issued here PPL intends to make an investment of over $5.25 million in Kalat block including geological studies and geological fieldwork in the 1st year, gravity and magnetic survey of about 1000 line km in the 2nd yaer, acquire 100line km 2D seismic data with an additional contingent programme of 100 line km 2D seismic acquisition in the 3rd year.

Drilling of an exploration well is contingent in 4th year of the initial licence term. Whereas in Tajpur block PPL will invest $10.21 million, including data purchase, geological & geophysical studies, 2D seismic data reprocessing of 200 line km and 3D seismic data acquisition of 210 sq-km in the 1st year, processing and interpretation of 3D seismic data in the 2nd year and drilling of an exploration well each in the 2nd, 3rd and 4th year respectively.

PPL has been involved in petroleum exploration and production in Pakistan for over half a century and has discovered gas and oil fields.

The company is the producer of gas from Sui, Mazarani and Kandkot Mining Leases and gas, oil and LPG from Adhi field. The company is operator in five onshore and two offshore exploration licences. It also holds non-operating working interests in seven D&PLs and six exploration licences. Furthermore, company holds Baryte and iron Mining Leases near Khuzdar and Dilband in joint venture with government of Balochistan. PPL has current production of around 860 million cubic feet of gas, 4,328 barrels of oil and 69 tons of LPG per day.

The execution ceremony was witnessed by Aman Ullah Khan Jadoon, Federal Minister for Petroleum and Natural Resources and Muhammad Naseer Mengal, Minister of State for Petroleum and Natural Resources.

The licences and the petroleum concession agreements were signed by Ahmad Waqar, secretary, Petroleum and Natural Resources on behalf of the President of Pakistan, G.A. Sabri,Director General Petroleum Concession and S Munsif Raza, Managing Director, Pakistan Petroleum Limited.