Regulatory approval allows continued hydrocarbon production from key oil and gas field in Punjab
KARACHI: Pakistan Petroleum Limited (PPL) has secured regulatory approval for a Development and Production Lease over the Adhi Field in Punjab, ensuring the continuation of hydrocarbon production from one of Pakistan’s major oil and gas assets.
In a notice submitted to the Pakistan Stock Exchange (PSX), PPL announced that the lease covers an area of 212.86 square kilometres located in the districts of Rawalpindi and Chakwal.
12-Year Production Lease Approved
According to the company, the Development and Production Lease has been granted for a period of 12 years with effect from November 13, 2024, under Rule 30-A of the Pakistan Onshore Petroleum (Exploration and Production) Rules, 2013.
The approval enables the joint venture partners to continue exploration, development and production activities in the field under the applicable regulatory framework.
The lease provides long-term operational certainty and supports ongoing investment in one of the country’s established hydrocarbon-producing areas.
Adhi Joint Venture Structure
The Adhi Field is operated by PPL, which holds a 39 per cent working interest in the joint venture.
The remaining participating interests are held by:
Oil and Gas Development Company Limited (OGDCL) – 50 per cent
Pakistan Oilfields Limited (POL) – 11 per cent
The field has been a significant contributor to Pakistan’s domestic oil, natural gas and liquefied petroleum gas (LPG) production for several years.
Positive Signal for Energy Sector
Industry analysts consider the lease approval a positive development for Pakistan’s exploration and production sector, as it ensures continued development of existing hydrocarbon reserves.
The approval is expected to facilitate future investment in field optimisation, production enhancement and infrastructure improvements, helping maintain output levels from the mature asset.
The continuation of production from Adhi Field is particularly important as Pakistan seeks to increase indigenous energy supplies and reduce dependence on imported fuels.
Supporting Energy Security
Pakistan continues to face rising energy demand and substantial expenditures on petroleum and liquefied natural gas imports.
Energy experts believe sustained production from established fields such as Adhi can help reduce import reliance, conserve foreign exchange reserves and strengthen the country’s energy security.
The approval of the Development and Production Lease marks another milestone for the Adhi Joint Venture and reinforces the strategic importance of domestic oil and gas resources in meeting Pakistan’s long-term energy requirements.
