ISLAMABAD  -  The Government of Pakistan Wednesday executed Petroleum Concession Agreement (PCA) and Exploration Licence (EL) over Block No.3270-9 (Lakki) with Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL).

The Lakki Exploration Licence and Petroleum Concession Agreement was signed by Mian Asad Hayaud Din, Secretary Petroleum Division, Qazi Mohammad Saleem Siddiqui, Director General Petroleum Concessions and Raziuddin, Chief Executive Officer of KPOGCL.

Federal Minister for Petroleum Division Ghulam Sawar Khan while speaking on the occasion said that execution of the exploration agreement will not only attract new investment in petroleum sector but also a bridge the gap between energy demand and supply.

He appreciated the efforts of Directorate General Petroleum Concessions and added that it would bear fruit for the country in the form of additional hydrocarbons reserves during next few years.

Lakki Block is located in districts, Lakki Marwat, Karak and Bannu. The total area of aforesaid block is 1269.93 Sq.Km and minimum firm financial commitment is $7.7million. Apart from minimum firm financial commitment, Company is obligated to spend a minimum of $30,000 per year in Lakki Block on social welfare schemes.

The KPOGCL is a provincial holding company of Khyber Pakhtunkhwa and is engaged in Exploration and Production activities in the country for the last few years. Lakki Block is the first Block being granted to KOOGCL as an operator.