Page 237 - Pakistan Oilfield Limited - Annual Report 2022

235
Annual Report 2022

2022 2021
Rupees ('000)
24. CASH AND BANK BALANCES

Bank balance on
Short term deposits 66,046,782 44,781,900
Interest/mark-up bearing saving accounts 1,822,642 2,847,873
Current accounts 36,338 91,609
67,905,762 47,721,382

Cash in hand 4,558 2,594
67,910,320 47,723,976
Balance with banks include foreign currency balances of US $ 169,602 thousand (2021: US $ 142,461
thousand). The balances in saving accounts and short term deposits earned interest / mark-up
ranging from 0.25% to 18% (2021: 0.3% to 8.21%).
2022 2021
Rupees ('000)
25. NET SALES

Crude oil 29,718,142 17,939,545
Gas - note 25.1 14,311,957 13,494,261
Less: Shrinkages/own use (2,042,897) 1,779,776
12,269,060 11,714,485
POLGAS/CAPGAS - Refill of cylinders 10,978,402 6,991,797
Solvent oil 285,062 188,811
Sulphur - 9,280
53,250,666 36,843,918

25.1 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, Maramzi & 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 arears.
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”.