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NOTES TO AND FORMING
PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
228
PAKISTAN OILFIELDS LIMITED
2020
2019
Rupees ('000)
26.
CASH AND BANK BALANCES
Bank balance on
Short term deposits
32,228,089
32,182,288
Interest/mark-up bearing saving accounts
4,544,197
3,603,343
Current accounts
66,640
54,422
36,838,926
35,840,053
Cash in hand
1,953
5,323
36,840,879
35,845,376
Balance with banks include foreign currency balances of US $ 117,967 thousand (2019: US $ 94,990
thousand). The balances in saving accounts and short term deposits earned interest/ mark-up
ranging from 2.00% to 13.35% (2019: 0.10% to 7.40%).
2020
2019
Rupees ('000)
27.
NET SALES
Crude oil
17,264,179
22,374,339
Gas - note 27.1
14,136,451
13,617,534
POLGAS/CAPGAS - Refill of cylinders
7,477,919
8,281,505
Solvent oil
220,478
246,295
Sulphur
7,700
10,025
39,106,727
44,529,698
27.1
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
PetroleumPolicy 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”.