ISLAMABAD: Petroleum Division on Wednesday signed petroleum concession agreement (PCA) and exploration licence for Makhad Block with Kirthar Pakistan.
Federal Minister for Petroleum Omar Ayub Khan witnessed the signing ceremony.
The minister appreciated the hard work of the Directorate General of Petroleum Concessions and said efforts would be beneficial to provide additional hydrocarbon reserves during the next few years.
The agreement would not only attract foreign direct investment in the petroleum sector, but would also contribute in bridging the energy demand and supply gap, the minister said.
Makhad Block is located in Attock, Mianwali and Chakwal districts of Punjab and Kohat of Khyber-Pakhtunkhwa.
The total area of the block is 1,562.92 square metres. KUFPEC has committed 980 work units to be earned in Makhad Block during the first three years of exploration licence.
The work programme will be discharged by acquiring either 600 Lkms 2D seismic data or equivalent work units by acquiring 3D seismic data and by drilling + 4,500 metres exploratory well.
KUFPEC will invest minimum $9.8 million in Makhad Block. Apart from minimum firm work commitment, the company is obligated to spend a minimum of $30,000/annum in Makhad Block on social welfare schemes.