Specifics of our energy law based legal advisory (Pakistani Oil and Gas Sector)

We can offer you specific legal advice including but not restricted to the legal issues arising out of the following aspects of Pakistani Law ;

  • Rules promulgated under the regulation of mines and oilfields and mineral development (government control) act, 1948 for grant and regulation of PETROLEUM rights
  • Pakistan petroleum (Production) Rules 1949,
  • Pakistan Petroleum (Exploration and Production) Rules, 1986
  •  Pakistan petroleum (Exploration and Production) Rules, 2001
  • Pakistan Petroleum Offshore (Exploration and Production) Rules, 1976
  • Natural Gas (Price for Supplies by Producers) Rules 1976
  • Regulation of Mines and Oilfields and Mineral Development (Government Control) Act and the ownership pf Petroleum. Per the Constitution of the Islamic Republic of Pakistan, 1973 Petroleum found Offshore after 1973 is Owned by the Federal Government of Pakistan.
  • The Impact of the 18th Amendment on the Ownership of Petroleum Rights under Pakistani Law

General laws specific to both territorial waters and EEZ continental shelf

  • Territorial Waters and Maritime Zones Act, 1976 (Amendment 1999)
  • Maritime Security Agency Act, 1994
  • Exclusive Fishery Zone (Regulation of Fishing) Act, 1975 (Amendment 1993).

General laws specific to coastal and port areas of pakistan which may affect the petroleum operations in the proximity of the coastal and port areas

  •  The Ports Act, 1908 (Ports (Amendment) Ordinance, 1982).
  •  Port Qasim Authority Act, 1973.
  •  Pakistan Coast Guards Act, 1973

 General laws specific to SHIPPING vessels (including drill ships, service ships and other boards)

  • The Coasting Vessels Act, 1938 and the Registration of Ships Act, 1841 (as amended by Amendment Act, 1951).
  • Merchant Shipping Act, 1923

International laws specific to offshore areas of Pakistan.

  • The 1958 Geneva Conventions.
  • The 1982 Convention on the Law of the Sea and the 1994 Agreement on the Deep Sea Bed.
  • The Territorial Sea and Contiguous Zone
  • Exclusive Economic Zone (EEZ)
  • The Continental Shelf.
  • Difference between the EEZ and the Continental Shelf
  • The Deep Sea Bed
  • Protection of the  Local Marine Environment under International Laws.

Comparison and analysis  of all Petroleum Policies since 1991 till 2012 in terms of the following issues specifically as to the following terms:

  • Contractor – Owner Relationship and Production Sharing
  • Division of offshore areas
  • Royalty is decreased
  • Royalty to be treated as Expense
  • Longer Initial License Period
  •  Retention of Petroleum Rights for a Significant Gas Discovery
  • New Early Pt Scheme
  • Work Unit Concept
  •  Price of Petroleum to be purchased by the Government
  • Escrow Account
  • Corporate Tax is reduced
  •  Title to the assets
  •  State Guarantees to hold Fiscal stability.
  • Better Market Access For Gas Production.
  • Role of DGPC, GHPL, OGRA, OGDCL  and the operator under the model production sharing agreement regime updated as at 2013
  • Pakistan offshore petroleum (exploration & Production) rules, 2003
  • Permit for Reconnaissance Surveys
  • License For Petroleum Exploration
  • Lease For Petroleum Development and Production
  • Accounts, Records, Inspection and Report
  • Standard of Operations

Reconnaissance agreements under the Pakistan offshore petroleum (exploration and production) rule, 2003

  •  Filing application for reconnaissance permit.
  •  Grant of reconnaissance permit
  • Renewal of reconnaissance permit
  • Whether guarantees are required
  •  Rules governing access to permit area
  • Conduct of operations
  • Imports and exports
  • Employment and training
  • Required reports
  • Data and samples
  •  Suspension of petroleum rights: force majeure
  • Governing law
  • Arbitration
  • Getting out of reconnaissance agreements under the Pakistan petroleum offshore (exploration and production) rules, 2003
  •  Assignment of Interests in Reconnaissance Agreement
  • Surrender of Interest in Reconnaissance Agreement
  •  Revocation of Reconnaissance Agreement

Exploration license and obligatory work programs

  • Filing Applications for Petroleum Exploration License
  • Competitive Bid Process Under the 2001 Petroleum Policy
  • Grant of Exploration Licence and its Renewals
  • Conditions of grant of exploration licence
  • Initial term of the licence and renewals

Rent payable to the State/Government for licence area
Commencement of operations
Obligatory work program for licence and its renewals
Liquidated damages or shifting of obligations to another block
 Bank guarantee/ parent company guarantee is required for production sharing agreement and its renewals
Law relating to Discovery and development and obtaining of development and production leases

  • Discovery of Petroleum
  • Declaration of Commercial Discovery
  •  Development Plan and Application for Development   and Production Lease
  • Payment of Initial Production Bonus and Advance Rent      prior to signing of the Development and Production   Lease
  • Execution of the Development and Production Lease
  • Renewal of the Development and Production Lease

Joint exploration and development unitization
Limitation of development area and petroleum exploration within a lease area
Rights over discovery of non-petroleum minerals
SUSPENSION, relinquishments, assignment, surrender and termination of petroleum rights

  • Validity
  • Suspension of Petroleum Rights; Force Majeure
  • Relinquishments
  • Assignment of Working Interest
  •   Surrender of Areas
  •  Cancellation of License for Non – Payment of Liquidated     Damages
  • Revocation of Lease For No Commercial Petroleum
  •  Revocation For Material Breach of Terms of the Petroleum   Rights Documents
  •  Revocation For Providing False Information In Material      Respect
  • Revocation in Case of Appointment of Receiver By Contractor or Liquidation of Contractor
  • Revocation in Case of Effective Control of Contractor is Changed Without Prior Approval of the Government
  • Closing Down Legal Requirements and decommissioning 

Disposal of petroleum produced during operations

  • Flaring of Associated Gas
  •  Rights to Set Up Refinery, LPG and Natural Gas Processing   Plants
  • Right to Acquire Petroleum

Sale of petroleum to parties other than the GHPL / Designee
Measurement, lifting and transportation of petroleum

  • Royalties and payments to the government under laws applicable to the offshore petroleum exploration and production operations
  • Excise Duty and Development Surcharge
  • Production Bonuses
  •  Sales Tax
  • Companies Profits (Worker’s Participation) Act, 1968
  • Worker’s Welfare Fund Ordinance 1971
  •  Income Tax
  •  Training Obligation
  • Marine Research Obligation
  •  Windfall Price

Imports and exports under the Offshore Model Production Sharing Agreement (Latest Model)

  • Customs Laws relevant to upstream petroleum industry in Pakistan
  • Procurement by Operator
  • Import-cum-export authorization
  • Imports of Equipment and Material required for Operators
  • Re-Sale and Export
  • Re-Sale of Equipment and Vehicles as Scrap in Pakistan
  • Imports/ Exports for Expatriate Employees
  •  foreign exchange provisions under the 2001 model offshore production sharing agreement (July 2003 Version)
  •  Overview of Foreign Exchange Laws of Pakistan
  • Remittances into Pakistan
  • Keeping proceeds outside Pakistan allowed
  •  Contributions allowed in Foreign Currency

Employment and training  under the Model Offshore Production Sharing Agreement
Training of Oil and Gas employees
Government’s And Non-Operator’s Power to Inspect Facilities,  Records. Etc.
Conducting petroleum operations provisions under the 2001 model offshore production sharing agreement (July 2003 Version)
Prescribed Conduct of Operations
Safety and Environmental Law Requirements under the Petroleum Laws
Government’s and Non-Operator’s Power to Inspect Facilities, Record, etc.
Handling data, samples, records and reporting under the 2001 model offshore production sharing agreement (July 2003 Version)
Data and Samples are Property of the Government
Reports and Filing
Confidentiality Restrictions
Management committee under the 2001 offshore model production sharing agreement (July 2003 Version)
Establishment of Managing Committee and subcommittees
Decisions regarding Management Committee Approval
Management Committee Meetings
Notice Requirement for Management Committee Meetings
Minutes of Management Committee Meeting
Accounting matters provisions under the 2001 model offshore production sharing agreement (July 2003 Version.
Work Program and Budget
Handling suits and claims, risk management and dispute sharing agreement (July 2003 Version)
Handling Suits and Claims in respect of the Joint Operations
Insurance Requirements and Indemnities
Governing Law and Compliance with certain specific laws

Environmental and safety laws applicable to territorial waters and coastal areas and which are expected to be made applicable to offshore areas of Pakistan

  • Pakistan environmental Protection Act, 1997
  •  Implementation of Pakistan Environmental Protection, 1997
  • Rules and Regulations Promulgated Under the Pakistan   Environmental Protection Act, 1997
  •  Regulatory Provisions of the Pakistan Environmental Protection Act, 1997
  • Environmental Assessments (EAs)
  •  Enforcement Mechanism Contained in the Pakistan                                      
  • Environmental Protection Act, 1997
  • Environmental Protection Provisions under the Pakistan Penal Code, 1860
  • Environmental Provisions under the Criminal Procedure Code, 1998

International Environmental laws affecting Offshore Petroleum Industry
Key International Treaties affecting Pakistani Oil and Gas operations
Major Regional Agreements affecting Pakistani Oil and Gas operations
Guidelines and Standards of International Organizations  affecting Pakistani Oil and Gas operations