Express Tribune: Govt Signs Agreements for Increasing Gas Prices

The government has signed 70 supplemental agreements with oil and gas exploration companies that cover 94 leases and promise an increase in wellhead prices in order to step up exploitation of hydrocarbon resources.

The agreements come in a bid to meet a key condition for the release of $500-million World Bank loan for the energy sector.

Representatives of Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Mari Petroleum, MOL and OMV signed the accords here on Thursday.

The government has committed to inking 120 supplemental agreements with oil and gas exploration companies. In the beginning, it has signed 70 agreements.

According to the deal with exploration companies, the government will offer a price of $4.1 per million British thermal units (mmbtu) for blocks awarded under the 2007 petroleum policy, $4.38 per unit for blocks covered by the 2009 policy and $5.78 per unit for deals reached under the 2012 policy if crude oil price is at $100 per barrel. MORE