Islamabad: Pakistan Petroleum Ltd (PPL) has secured a Development and Production Lease (D and PL) for the Sui Gas Field, ensuring the field's operation for the next decade and committing to settle significant financial obligations. The company announced its plans to address PkR52.5 billion in liabilities associated with production bonuses and social welfare initiatives by May 2025.

According to AKD Securities Limited, the D and PL for the Sui Gas Field, spanning 455.80 square kilometers, was granted for a period of ten years starting from June 2015. The lease's finalization was delayed due to negotiations over royalty claims with the Government of Balochistan, leading to an accrual of additional lease extension bonuses. These terms have now been resolved, allowing PPL to proceed with fulfilling its financial commitments.

The notice further detailed that PPL has already factored these obligations into its profit and loss statements through lease extension bonuses and royalty charges. With the formal lease grant, the company plans to continue operations and seek further extensions beyond May 2025. The resolution of these financial matters is expected to result in substantial cash outflows until the specified date as PPL meets its settled payment schedule approved by the Economic Coordination Committee (ECC).