Concluding round of PCAs signed by PPL and OMV

(left to right) MD and CEO Asim Murtaza Khan exchanges Petroleum Concession Agreement document with Secretary Ministry of Petroleum and Natural Resources Abid Saeed at a ceremony organized in Islamabad in February 2014 to grant exploration blocks awarded

Concluding round of PCAs signed by PPL and OMV

Islamabad, February 28, 2014: Pakistan Petroleum Limited (PPL) signed three Exploration Licenses (ELs) and Petroleum Concession Agreements (PCAs) with the Government of Pakistan in Islamabad on February 28 for Blocks 2569-5 (Khipro East), 2866-4 (Margand) and 2867-5 (Kuhan), the last two in joint venture with OMV (Pakistan) Exploration GmbH (OMV), an Austrian Exploration and Production (E&P) company.

PPL will be operator in Khipro East and Margand, located in Sindh and Balochistan, respectively, together spanning an area of approximately 4900 square kilometers. OMV, on the other hand, will be operator in Kuhan, also located in Balochistan, marking a first in recent years that a multinational E&P has ventured into the country as operator.

Notably, the signing allays the general apprehension regarding Balochistan’s security situation forestalling exploration activities in the province on the one hand and lack of interest by multinational companies to invest in Pakistan’s oil and gas sector on the other.

Having played a key role in bringing the Austrian E&P to Pakistan in 1990, PPL and OMV share a fruitful business relationship for over two decades and have since partnered in successful ventures, including Sawan, Miano, Latif and Tajjal fields.

PPL intends to make an estimated total investment of USD 50 million in Khipro East and Margand to discharge minimum work commitment of 570 work units through acquisition, processing and interpretation of 2D/3D seismic and exploratory drilling during the first three years.

The ELs and PCAs were signed by Secretary, Ministry of Petroleum and Natural Resources (MPNR) Abid Saeed, MD and CEO Asim Murtaza Khan and OMV’s Senior Vice President, Middle East and Caspian Region Erwin Kroell. Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, Minister of State for Petroleum and Natural Resources Jam Kamal Khan, Director General Petroleum Concessions Saeedullah Shah, Advisor to MPNR Zahid Muzaffar and Parliamentary Secretary to MPNR Shehzadi Umarzadi Tiwana were also present.

The signing of the ELs and PCAs, which is the third round by the current government, concludes the grant of all blocks won by PPL in the last bidding round held in March 2013.