Page 38 - Condensed Interim Financial Statements - For Nine Months Ended March 31, 2022

Notes to and forming part of the Condensed Interim
Consolidated Financial Statements (Unaudited)
For the nine months ended March 31, 2022

Balance with banks include foreign currency balances of US$ 163,535 thousand (June 30,
2021: US$ 142,461 thousand). The balances in saving accounts and short term deposits earned
interest/ mark-up ranging from 0.5% to 12.10% p.a (June 30, 2021: 0.3% to 13.81% p.a).
Three months ended Nine months ended
Mar. 31, 2022 Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2021
Rupees ('000)
18. Net sales
Crude oil 7,714,863 4,962,649 20,514,657 12,911,098
Gas - note 18.1 3,490,763 3,038,796 10,607,919 10,334,634
Less: Shrinkages/own use 524,209 271,524 1,499,105 1,198,614
2,966,554 2,767,272 9,108,814 9,136,020
POLGAS/Cap Gas - Refill of cylinders 2,924,793 1,888,635 8,168,231 5,436,729
Solvent oil 57,128 41,261 191,485 139,582
13,663,338 9,659,817 37,983,187 27,623,429
18.1. On August 28, 2015, the Company signed the Supplemental Agreement with the
Government of Pakistan (the Government) for conversion of TAL Block Petroleum
Concession Agreement (PCA) signed under the 1997 Petroleum Policy to Petroleum
(Exploration & Production) Policy 2012 (Petroleum Policy 2012). Price regimes prevailing in
Petroleum Policy 2007, Petroleum Policy 2009 and Petroleum Policy 2012 shall be
applicable correlated with the spud date of wells in the respective policies starting from
November 27, 2007 and for future exploratory efforts under the above mentioned block. The
conversion package included Windfall levy on Natural gas only. Draft statements specifying
sums aggregating US $ 34,213 thousand (Rs 3,393,389 thousand) till June 30, 2015 due to
the Company in respect of Mamikhel, Maramzai & Makori East discoveries in TAL block
were submitted to the Government on December 8, 2015. On October 9, 2017 Oil and Gas
Regulatory Authority (OGRA) issued gas price notifications of the subject arrears.
On December 27, 2017, the Ministry of Energy (Petroleum Division) notified certain
amendments in Petroleum Policy 2012 which also included addition of following
explanation of conversion package:

“the conversion package shall include (i) price of Natural Gas for New Exploration Efforts
(ii) windfall levy on Natural Gas (iii) EWT gas production, pricing and obligations (iv)
Windfall levy on Oil & Condensate, only for PCAs converting from 1994 and 1997
Petroleum Policies and (v) Financial obligations relating to production bonus, social welfare
and training”.
Under the said Notification, the Supplemental Agreements already executed for
conversion from Petroleum policies of 1994 & 1997 shall be amended within 90 days, failing
which the working interest owners will not remain eligible for gas price incentive. On
January 3, 2018, Directorate General Petroleum Concessions (DGPC) had required all
exploration and production companies to submit supplemental agreements to incorporate
the aforementioned amendments in Petroleum Concession Agreements (PCAs) signed
under 1994 and 1997 policies, for execution within the stipulated time as specified above.

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