Page 23 - Condensed Interim Financial Information - December 31, 2017

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21
For the six months period ended December 31, 2017
Selected notes to and forming part of the Condensed Interim
Financial Information (Unaudited)
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)
has 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.
Based on legal advice, the Company's is of the view that already executed Supplemental
Agreement cannot be changed unilaterally, the Supplemental Agreement was signed
under the Conversion Package where gas price was enhanced and Windfall Levy on
Oil/Condensate (WLO) was not applicable, the impugned SRO by giving retrospective
effect amounts to taking away the vested rights already accrued in favour of the
Company. The Government has no authority to give any law or policy a retrospective
effect and the Company will challenge the imposition of WLO in the court of law. The
impact of WLO on conversion of TAL block till to date is approximately US $ 134 million
(Rs13,687 million) and value of enhance gas price revenue is US $ 63 million (Rs 6,404
million). On prudent basis effect of adjustment on account of enhanced gas price
incentive due to conversion fromPetroleumPolicy 1997 to PetroleumPolicy 2012 for the
period July 1, 2015 to June 30, 2017 previously accounted for amounting to Rs 2,225
million has been reversed. Similarly, effect of related adjustment for the period July 1,
2017 to December 31, 2017 amounting to Rs 786 million has also been reversed. Entire
revenue on account of enhanced gas price incentive of Rs 6,404 million till December 31,
2017 related to conversion of TAL Block from Petroleum policy 1997 to Petroleum policy
2012 will be accounted for upon resolution of this matter as per the accounting policy of
the Company.
Operating cost
- Own fields
310,167
603,772
- Share in joint operations
486,191
1,145,188
Well work over
76,323
122,636
POLGAS - Cost of gas/LPG, carriage etc.
841,059
1,534,489
Pumping and transportation cost
9,636
16,060
Depreciation
382,879
764,873
2,106,255
4,187,018
Opening stock of crude oil
and other products
431,585
375,521
Closing stock of crude oil
and other products
(445,322)
(445,322)
2,092,518
4,117,217
17. OPERATING COSTS
286,049
610,726
651,991
1,209,092
(24,516)
(28,551)
912,429
1,609,864
10,402
17,882
365,787
728,961
2,202,142
4,147,974
194,343
221,893
(241,029)
(241,029)
2,155,456
4,128,838
Rupees ('000)
Dec. 31, 2016
Six months period ended
Three months period ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2017