Legal Compliance Register for E & P Operations

Regulations, Law, Concessionary Authority/

No Provision(s) Remarks
Document Stakeholders
Establishment of Office/Entry to a Block
1 Pre-qualification, application and bidding round for New License E & P Rules DGPC Every time a Bidding
Round occurs
2 Grant of EL & Signing of PCA E & P Rules DGPC When Required
3 Approval for Assignment of Working Interests- For Farm in and Farm out E & P Rules DGPC When Required

4 Radio Sets-Import-For obtaining VHF Frequency allocation Not Known PTA/FAB At establishing Field
Premises
5 Approval for Establishment of Branch Office & Renewal of approval BOI requirement BOI When Required
Exploration Phase
6 Operator shall obtain work visas for its expatriate employees pursuant to BOI GOP (Work Visa Procedure) BOI Every Phase
this procedure.
7 The licensees will ensure that all the foreigners involved in exploration are Exploration License DGPC Every Phase
security cleared prior to their arrival in Pakistan. Foreigners working in the
license area will be cleared by the concerned security agencies and should
be registered with FRO concerned under Foreigners Act and full particulars
including photographs shall be supplied to the concerned provincial
government. Instructions issued by the Ministry of Interior from time to time
regarding work in the area, employment of foreign nationals and movement
of local/foreign nationals will be strictly followed. Expatriates of South Asian
countries and other nationals as specified from time to time by the GOP will
not be employed. In addition, a liaison officer of the Ministry of Petroleum &
Natural Resources will be detailed to look after the project and watch the
activities. Foreigners will remain confined to the working area.

8 Operator to ensure general compliance with all requirements stipulated in Foreigners Act, 1946 Superintendent Every Phase
this Act, and the rules and regulations promulgated thereunder. Police, Provincial

9 This Order lays down requirements for monitoring movement of foreigners Foreigners Order, 1951 Superintendent Every Phase
in Pakistan. Further, military commanders of cantonment areas have Police, Provincial
powers to remove foreigners from any cantonment area.
10 The Foreigners Rules, 1966 deal with procedural matters including report Registration of Foreigners Rules, Superintendent Every Phase
by a foreigner of his arrival into Pakistan, report of change of residential 1966 Police, Provincial
address, report to be made by hotelkeepers etc.
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11 Operator is to register foreigners pursuant to the Registration of Foreigners Registration Of Foreigners Superintendent Every Phase
Rules, 1966 and Registration of Foreigners Exemption Order, 1966. Exemption Order, 1966 Police, Provincial

12 Field Visits intimation for obtaining escort of security Not Known DGPC, MOI, Every Phase
Provincial Govt
13 The licensees will approach the Survey of Pakistan for issuance of maps in Exploration License DGPC Every Phase
accordance with the prescribed procedure; the individuals handling
restricted maps will need security clearance.
14 Operator to comply with the requirements of PCA, for all foreign exchange PCA DGPC Every Phase
matters.
15 Operator to keep foreign exchange contributions of the working interest PCA DGPC Every Phase
owners in a foreign currency bank account in a scheduled bank in
Pakistan.
16 Operator to hold quarterly OCM within (stipulated time in PCA) advance JOA DGPC Every Phase
notice to JVP. OCM can be cancelled with the consent of JVP if no issue is
required to be discussed.
17 Minutes of the OCM have to be circulated by the Operator to partners JOA DGPC/JVP Every Phase
within stipulated days requirements in PCAs.
18 Approvals from partners may be sought without holding an OCM through JOA JVP Every Phase
circulation of a resolution. Deemed vote in favor by the party not
responding within Given time in PCA.
19 Approvals from partners may also be sought within given time for non JOA JVP Every Phase
emergency matters. Deemed vote in favor of the resolution by the party not
responding within given time. For emergency matters, operator may take
necessary actions immediately and inform partners later.

20 Application for License Renewals or Extensions upon expiry of the license. E & P Rules DGPC Every Phase

21 Prior approval of JVP is required for the extension or renewal of the JOA JVP Every Phase
License or the application for grant extension or renewal of any Lease(s ).
22 Prior approval of JVP is required for Surrendering of any pan of the Area or JOA JVP Every Phase
of any Lease.
23 Prior approval of JVP for selection of any areas outside the License Area JOA JVP Every Phase
for which application may be made by the parties jointly.
24 Prior approval of JVP is required for Budgets,work programmes, revisions JOA JVP Every Phase
and amendments thereto.
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25 Operator to submit proposed annual work program and budget to partners, JOA DGPC Every Phase
as per number of given days in PCA, before the start of calendar year.

26 Operator to seek partners approval of AFEs for seismic surveys, any well JOA DGPC Every Phase
operation, any single addition to the fixed assets, other than a well, of
(Given Value in PCA), any single maintenance project of (Given Value in
PCA); Operator is to provide informational copies of AFEs to partners, for
all AFEs of Given Value as per PCA.
27 Prior approval of JVP is required for the selection of professional JOA JVP Every Phase
consultants, technical services and award of contracts on bids for
geophysical, drilling and well completion operations in accordance with
JOA.
28 Prior approval of JVP for finalizing the terms of recommended bid for JOA DGPC Every Phase
contracts having value as per PCA.
29 At least 10% of the computer software contracts shall be awarded to local PCA DGPC Every Phase
contractors provided such services are at competitive price.
30 All geological, geophysical, well and other technical data obtained from PCA DGPC Every Phase.
GOP is to be treated strictly confidential.
31 All mapping information including sketches and photography to be Exploration License DGPC Every Phase.
prepared by the licensees concerning the license area shall not be
released to anyone except as permissible under the Concession
Agreement and the Rules.
32 Operator to submit to Provincial EPA, Environmental Impact Pakistan Environmental Protection Federal EPA For drilling of
Assessment(EIA) for shooting of seismic in national reserves or parks, Agency (Review of IEE and EIA) &Provincial EPA Exp/App/Dev/Abon.
prior to Seismic & Drilling Operations. Regulations, 2000 Well/Field
33 Operator to submit to Provincial EPA, Initial Environmental Pakistan Environmental Protection Federal EPA & For drilling of
Examination(IEE) for all seismic Operations, prior to Seismic & Drilling Agency (Review of IEE and EIA) Provincial EPA Exp/App/Dev/Abon.
Operations. Regulations, 2000 Well/Field
34 The data and test results shall not be exported outside Pakistan without Exploration License DGPC Every Phase.
prior clearance from DGPC.
35 Operator shall submit applications to the Government of Provincial (Land Land Acquisition Act, 1894 (and EDO, Provincial (Civil Works - Well Site
Acquisitions Collector/ EDO Revenue) pursuant to these laws for petroleum rules promulgated thereunder from preparation, Access
operations time to time) Roads, Production
Facilities etc).
36 Prior approval of JVP is required for well location, drilling, testing, PCA,JOA JVP For Expl/app/dev/Abond
deepening, plugging back, completion, re-working or abandonment of Well activity in Each
wells. Phase.
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37 Notices for commencement of well activity related to drilling, Suspension or E & P Rules DGPC/CIM For Expl/app/dev/Abond
abandonment (on prescribed form) to be submitted to the DGPC for Well activity in Each
approval, prior to commencement of such activity. Phase.
38 Operator to ensure general compliance with all standards stipulated in the Oil And Gas (Safety In Drilling And Chief Inspector of For Expl/app/dev Well
Oil and Gas (Safety in Drilling & Production) Regulations, 1974, while Production) Regulations, 1974 Mines activity in Each Phase.
conducting drilling and production operations.
39 Well commencement notice is required to be filed with the Chief Inspector Oil And Gas (Safety In Drilling And Chief Inspector of For Expl/app/dev Well
of Mines prior to drilling of a well as per Form-VII. Production) Regulations, 1974 Mines activity in Each Phase.

40 Operator to ensure that contractor obtains chief inspector of explosives Explosives Act, 1884 (for Import And Chief Inspector of Also required for
license for the storage of explosives during drilling, Well testing at sites. Storage Of Explosives Materials) Explosives, Appraisal, FDP &
Provincial Production Phase.
41 Operator to ensure general compliance with all standards stipulated in the Electricity Act, 1910 (For Electrical Electricity, Also required for
Electricity Act 1910 and the Electricity Rules, 1937, pertaining to Petroleum Installations At Well Sites/Production Inspector, Appraisal, FDP &
Operations(Rule 95-116), in respect of electrical installations at petroleum Facilities) Provincial Production Phase.
drilling and production sites(for Power Generation).
42 Operator to obtain an electrical contractors license which in turn requires Electricity Act, 1910 (For Electrical Electricity, Also required for
hiring an electrical supervisor licensed under the Electricity Act 1910. Installations At Well Sites/Production Inspector, Appraisal, FDP &
Facilities) Provincial Production Phase.
43 Operator to file returns in respect of electrical installations at petroleum Electricity Rules, 1937 (For Electrical Electricity, Also required for
drilling and production sites for each calendar year prior to February 1 of Installations at Well Sites/Production Inspector, Appraisal, FDP &
each year. These forms are prescribed in Annexure IX of the Electricity Facilities) Provincial Production Phase.
Rules 1937.
44 Operator to ensure general compliance with all standards stipulated in the Petroleum Act, 1934 (for Storage Chief Inspector of Also required for
Petroleum Act 1910 and the Petroleum Rules, 1937, in respect of storage And Transportation Of Petroleum Explosives, Appraisal, FDP &
and transportation of petroleum and inflammable chemicals. And Inflammable Chemicals) Provincial Production Phase.
45 Monthly progress reports (of G & G work, drilling, etc.) to be submitted to E & P Rules DGPC Also required for
the DGPC, within 5 days of each month. Appraisal, FDP &
Production Phase.
46 Daily well drilling reports (on prescribed form) to be submitted to the DGPC. E & P Rules DGPC Also required for
Appraisal, FDP &
Production Phase.
47 Notice for abandonment of well or change in ownership of well Oil And Gas (Safety In Drilling And Chief Inspector of Also required for
Production) Regulations, 1974 Mines Appraisal, FDP &
Production Phase.
48 Notices for appointment and change of company manager and well Oil And Gas (Safety In Drilling And Chief Inspector of Also required for
manager. Production) Regulations, 1974 Mines Appraisal, FDP &
Production Phase.
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49 Notices in case of accidents. Oil And Gas (Safety In Drilling And Chief Inspector of Also required for
Production) Regulations, 1974 Mines Appraisal, FDP &
Production Phase.
50 Notices for occupational diseases. Oil And Gas (Safety In Drilling And Chief Inspector of Also required for
Production) Regulations, 1974 Mines Appraisal, FDP &
Production Phase.
51 Operator to ensure that contractor submit applications to the chief inspector Explosives Act, 1884 (for Import And Chief Inspector of Also required for
of explosives for license for the storage facility storing Storage Of Explosives Materials) Explosives, Appraisal, FDP &
explosives(Petroleum) during Drilling of a well. Provincial Production Phase.
52 If a well shows presence of petroleum report it immediately/ within 24 E & P Rules DGPC & JVP Also required for
hours. Appraisal, FDP &
Production Phase.
53 Get the approval of JVP for the submission of Press Release to E & P Rules JVP & DGPC -
Government/DGPC for approval.
54 A further report within 7 days of the discovery notice under applicable E & P Rules DGPC & JVP -
petroleum rules.
55 Within 1 month of the completion or abandonment of well, a E & P Rules DGPC & JVP -
comprehensive report to be submitted to the DGPC.
56 To inform the DGPC, whether or not the Discovery, in the opinion of the PCA DGPC & JVP -
Working Interest Owners, Discovery merits appraisal. Prior approval of
JVPs is also obtained.
57 Operator to seek permission of DGPC to flare gas or for returning gas in PCA DGPC Every Phase
subsurface.
58 Miscellaneous Well Notice- Testing, Completion, Suspension & E & P Rules & Mines Act 1923 DGPC, CIM Every Phase
Abandonment
59 Miscellaneous Well Notice-Workovers E & P Rules & Mines Act 1923 DGPC, CIM Every Phase
60 Operator to obtain chief inspector of explosives license for the storage of Explosives Act, 1884 (for Import And Chief Inspector of Every Phase
explosives at Production Facilities for test production facilities. Storage Of Explosives Materials) Explosives,
Provincial
61 Operator to obtain the "certificate of verification" for the weigh bridges. Provincial Standard & Weight Inspecor Weights Annually; once
Measures Enforcement Act, & Measures Production commences
1976(KPK III of 1976)
Appraisal Phase

62 All sort of approvals that have been secured in Exploration phase, wherein various as given in Exploration various as given
Remarks column it is mentioned "For every phase", will have to be Phase in Exploration -
secured during Appraisal Phase. Phase
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63 If the Operator notifies DGPC give notice "that Discovery merits appraisal", PCA & JOA DGPC & JVP -
an appraisal programme along with its budget should be submitted to
DGPC.Prior approval of JVPs is also obtained.
64 Operator shall not start production from any well before testing and making PCA DGPC Every Phase
sure to the representative of GOP that the well has been properly
completed.
65 Allocation of Buyers(If Selling to Government) - Liquids PCA DG Oil During EWT production &
Commercial Phase
66 Allocation of Buyers(If Selling to Government) - Gas PCA DG Gas During EWT production &
Commercial Phase
67 Operator to seek permission of DGPC & DG Oil to export petroleum. PCA DGPC/DG Oil During EWT production &
Commercial Phase
68 Operator to ensure that petroleum is not exported to countries to which PCA DGPC During EWT production &
sales are prohibited by GOP. Commercial Phase
69 The Operator has to inform the DGPC with the approval of the Operating E & P Rules DGPC & JVP
Committee that discovery is a commercial discovery under applicable -
petroleum rules along with the Commerciality Report.
70 Prior approval of JVP is required for Declaration of Commerciality of a JOA JVP
-
Discovery to Government.
71 Gas price Notifications-EWT & commercial phases Natural Gas (Price For Supplies By OGRA, DG Gas For
Producers) Rules, 1976 Commercial/Development
Phase as well
72 Crude Oil/Condensate Sales Agreements- If Production is allocated to PCA DG Oil For
Govt. Commercial/Development
Phase as well
73 Gas Sales Agreements- If Production is allocated to Govt. PCA DG Gas For
Commercial/Development
Phase as well
74 Gas Pricing Agreements-For EWT & Commercial Phase PCA DG Gas For
Commercial/Development
Phase as well
75 Submission of Reserves Report/Certification E & P Rules DGPC For
Commercial/Development
Phase as well
76 Prior approval of JVP is required for estimates of reserves of Petroleum. JOA JVP For
Commercial/Development
Phase as well
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77 Prior approval of JVP is required for Petroleum availability forecast giving JOA JVP For
the total quantities of Petroleum which can be produced from the Area in Commercial/Development
any Quarter taking into consideration the Maximum Efficient Rate (MER) of Phase as well
recovery of reserves from the Area in accordance with good oilfield
practices at that time, the determination thereof being made for each
Quarter not less that ninety (90) days prior to the commencement of that
Quarter.

Development Phase
78 All sort of approvals that have been secured in Exploration phase, various as given in Exploration various as given
Appraisal phase wherein Remarks column it is mentioned "For every Phase in Exploration -
phase", will have to be secured during Development Phase. Phase
79 Prior approval of JVP for submission of Development Plan & Lease JOA JVP
application, to DGPC, for a field and the vertical and horizontal boundaries -
for any Discovery Area.
80 Field Development Plan and application for D & P lease to be submitted E & P Rules DGPC & JVP
-
within 6 months of DOC.
81 The holder shall not flare any natural gas or use it to create or increase the E & P Rules DGPC
pressure in the reservoir without the Government’s approval. -

Prior approval of JVP is required for, applying unitization request to Govt., JOA JVP
-
any acreage in the Lease with acreage outside the Lease.
82 Ensure that petroleum produced from reservoir is on maximum efficient E & P Rules/PCA DGPC
-
rate (MER)
83 License for import of Dangerous Petroleum is required also, unless Petroleum Rules, 1937 (for Storage Chief Inspector of
exempted under Petroleum Rules, 1937. And Transportation Of Petroleum Explosives,
And Inflammable Chemicals) Provincial -

84 Operator to obtain chief inspector of explosives license for the storage of Explosives Act, 1884 (for Import And Chief Inspector of
explosives at Production Facilities. Storage Of Explosives Materials) Explosives, -
Provincial
Production Phase
85 All sort of approvals that have been secured in Exploration phase, wherein various as given in Exploration , various as given
Remarks column it is mentioned "For every phase", or in Appraisal Phase appraisal Phase in Exploration,
"For Commercial/Development Phase as well "will have to be secured Appraisal Phase -
during Development Phase.
86 Permission of Annual Turnarounds PCA DG Gas/DG Oil -
87 To obtain the Certification of Boilers for production facilities The Boilers Act, 1923 CIB PD ICL -
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88 To obtain the License for extraction of LPG Liquefied Petroleum Gas (Production OGRA
and Distribution) Rules, 2001 and
the OGRA Ordinance 2002 -

Abandonment Phase

89 Only those approval will have to be secured which relate to this phase. Only relevant approvals of the Only relevant -
previous phases approvals of the
previous phases

90 If a Petroleum right is to be surrendered and if all obligations are fulfilled, E & P Rules DGPC License Abandonment
same should be done by giving 3 months advance notice to DGPC.

91 When a permit or License has expired or has been surrendered wholly or E & P Rules DGPC License Abandonment
partly, the permit or License area shall so far as practicable be reinstated in
its original condition and where this is not practicable, the holder shall pay
compensation to the [Government] for damages suffered as a result
thereof.
92 At least one year prior to termination, the holder of a lease shall submit to E & P Rules DGPC D & P Lease
the Government a plan for the orderly closing down of his operations, and
for the removal of the facilities or their transfer to the Government

93 Return of the Parent Company Guarantees to be sought upon expiry of the E & P Rules DGPC Dev
petroleum Development and Production Lease.
Other Recurrent Compliance Activities
94 Flying over the area shall not be allowed without permission of the Exploration License DGPC Every Phase
concerned security agencies.
95 No Global Positioning System is to be used by the licensees. Exploration License DGPC Every Phase
96 Ensure that well records are maintained and delivered to DGPC upon E & P Rules DGPC Every Phase
becoming available in accordance with Petroleum Exploration & Production
Rules.
97 The licensees will ensure that none of its employees, contractors or Exploration License DGPC Every Phase
consultants discloses any information about the terrain in the area to any
individual/agency without clearance from the general headquarters (MI
Directorate).
98 Investment on social welfare schemes and training is to be made in PCA/ E& P Policy DGPC Every Phase.
accordance with the provisions of the petroleum policy and the guidelines
issued by the GOP from time to time.
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99 Licensees will deposit the advance rent as prescribed as per the Petroleum Exploration License/E & P Rules DGPC Every Phase for block
Rules. A receipted copy of the treasury challan in respect of advance rent and Leases.
of the license will be sent to DGPC.
100 Prior approval of JVP is required for all press releases and publicity JOA JVP/DGPC Every Phase.
material to he issued by the Operator on behalf of the Working Interest
Owners, prior to the release of the same by the Operator. This will
however. be subject to prior approval of DGPC.
101 Licensees will pay suitable rent if forest and other government land is Exploration License/Land Acquisition DGPC Every Phase
utilized. There will be no prohibition in carrying out forest works in the Act.
license area by the concerned department.
102 Canal patrol bank will not be used for running machinery along the Exploration License DGPC/Provincial Every Phase
channels. In case it is used when no alternate is available, the cost for its Govt.
repairs will have to be deposited in advance. Special approval will have to
be obtained where heavy machinery has to cross the channels either
through existing bridges or across the channels. The limits of loading
capacities on the regulators, bridges and the canals shall have to be
observed at the time of transportation of any equipment required for
exploration and drilling purposes. Repairs and replenishing cost of the
effected sites will have to be deposited in advance by the licensees.

103 Subject to a 10% variation allowance, operator to ensure that no work is JOA DGPC Every Phase
undertaken which is not backed by an approved budget and AFE.
104 Ensure that originals of all records and accounts are kept in Pakistan, E & P Rules DGPC Every Phase
unless otherwise approved by the DGPC.
105 Annual report in respect of exploration/production/ development activity E & P Rules DGPC Every Phase
carried out during a year, to be submitted to the DGPC, within 45 days of
end of such year.
106 Financial statement along with audited accounts for a year, to be submitted E & P Rules DGPC Every Phase
to the DGPC, within 3 months of end of such year.
107 Annual report in respect of economically recoverable reserves at the end of E & P Rules DGPC Every Phase
a year, to be submitted to the DGPC, within 45 days of end of such year.

108 Ensure that holder maintains insurance to cover for its indemnity E & P Rules DGPC Every Phase
obligations under applicable petroleum rules.
109 Operator to withhold tax when making any payments subject to income tax Income Tax Ordinance, 1979 Income Tax Every Phase
at various rates specified in this Ordinance. Department, CBR,
GOP
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110 Per Sales Tax Act, 1990, Sales Tax (Amendment) Ordinance, 1999 and Sales Tax Act, 1990 (as mended by Sales Tax Every Phase
SRO 922(1)/99 dated august 16, 1999, sales tax at the rate of 15% is Sales Tax (Amendment) Ordinance, Department, CBR,
applicable for crude oil and natural gas sold by Operator to the government 1999) GOP
(i.e. refineries and gas distribution companies as designated purchasers on
behalf of the government) as Operator is a "producer" for the purposes of
Sales Tax Act, 1990.

111 Operator is required to deposit that sales tax along with its return on 15th Sales Tax Act, 1990 (as mended by Sales Tax Every Phase
day of each month, which is indicated as "sales tax payable" in its return. Sales Tax (Amendment) Ordinance, Department, CBR,
1999) GOP
112 The First Schedule of the Central Excises Act 1944 (as amended by the Central Excise Act, 1944 Excise Every Phase
Finance Act 1944) levied the rate of duty at Rs. 50 per hundred cubic Department,
meters on all petroleum gases and other gaseous hydrocarbons. Operator Provincial
to compute and thereafter pay excise duties to the excise authorities in
Province.
113 Operator shall have working knowledge of this Act, as any administrative Customs Act, 1969 Customs Every Phase
appeals filed against the orders of customs authorities regarding imports of Department, CBR,
the Operator follows the procedure laid out in this Act. Government of
Pakistan

114 These SRO relates to exemption from duties and taxes on import of SRO 400(I)/97 Customs Every Phase
machinery, equipment, materials, consumables etc. by the E&P companies Department, CBR,
including Operator. All requests to the DGPC for import authorization Government of
should comply with this SRO. Pakistan.

115 Operator shall ensure that it does not import items included in this list. CGO-7/98 (List Of Locally Engineering Every Phase
Manufactured Items) Development
Board (EDB),
Islamabad
116 Although there is no specific provision in the Registration Act, 1908 Registration Act, 1908 (For Sub-Registrar, Every Phase
concerning registration of petroleum rights documents (i.e. reconnaissance Registration Of Certain Documents) Provincial
permits, exploration licenses, development and production leases and
assignment documents), ever since petroleum rights have been granted,
the documents concerning such rights have been required to be registered
under the Registration Act, 1908 as documents concerning immovable
property by the authorities. Further, all land leases, office leases and house
leases have to be registered also.
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117 Operator shall stamp all documents, which are likely to be registered or Stamp Act, 1899 (For Stamping of Sub-Registrar, Every Phase
presented in Courts in accordance with this Act. Certain Documents) Provincial and
relevant Courts
118 Operator to ensure that all contracts governed by the Pakistani law comply Contracts Act, 1872 (Governing All Sub-Registrar, Every Phase
with this Act. Contracts Signed In Pakistan) Provincial
119 Operator to ensure general compliance with all standards stipulated in the Pakistan Nuclear Regulatory Pakistan Atomic Every Phase
Pakistan Nuclear Regulatory Authority ordinance, 2001 and the rules Authority Ordinance, 2001 (For Energy
promulgated thereunder, if NORM (naturally occurring radioactive Norm Deposits In Condensate Commission
materials) is encountered in petroleum storage vessels during petroleum Storage Tank) PAEC
production operations.
120 Form-I Well or Field Data during a year to be submitted on or before Oil And Gas (Safety In Drilling And Chief Inspector of Every Phase
February 21 of each year. Production) Regulations, 1974 Mines

121 The local irrigation authorities will be informed in advance before any Exploration License DGPC, Irrigation Every Phase
particular area is taken for exploration purposes. No irrigation structures Department,
including canals, head works, small dams, flood bunds and tube wells etc. Forest Dept,
will be damaged during joint operations. Such operations will be Archeological
undertaken at a reasonable distance from either side of the channels, main Dept.,
canals, from any important structures on canals, and in or around a
barrage. It would not in any way interfere with, or cause hindrance to the
works of Irrigation & Power Department and to the normal flow of irrigation
supplies in the canals. If any operations are necessary at such locations,
the same will be undertaken after consultation with and written approval of
the irrigation and power department of the provincial government. The
NOC of the Irrigation and Power Department would not in any way, be
interpreted to mean that canal supplies would be available for the purpose
of prospecting activities.
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122 Operator shall ensure compliance with these labor laws which provide for Industrial & Commercial Labor Inspector, Every Phase
certain labor rights, based on international labor law conventions, to which Employment (Standing Orders) Provincial and
Pakistan is a signatory. Ordinance, 1968 (The Primary Chief Inspector of
Workers Rights Law Applicable To Mines, Islamabad
All Employees). Shops And
Establishments Ordinance, 1969
(The Labor Law Applicable To
Islamabad Office) Mines Act, 1923
(Applicable For Oilfield Workers) Oil
And Gas (Safety In Drilling And
Production) Regulations , 1974
(Applicable For Oilfield Workers)

123 Bonus: Every worker, employed continuously for not less than ninety (90) Industrial & Commercial Labor Inspector, Every Phase
days during a year in which profit is made, is entitled to get a specified Employment (Standing Orders) Provincial
bonus out of company profits. Ordinance, 1968 & Shops And
Establishments Ordinance, 1969
124 Gratuity: Gratuity is payable to a worker upon his retirement or termination Industrial & Commercial Labor Inspector, Every Phase
for any reason other than misconduct. It is payable at the rate of twenty Employment (Standing Orders) Provincial
(20) days wages for every completed year of service, or any part thereof, in Ordinance, 1968 & Shops And
excess of six (6) months. It is, however, not payable by employers who Establishments Ordinance, 1969
have established a provident fund.
125 Provident Fund: The establishment of a provident fund is not obligatory but Industrial & Commercial Labor Inspector, Every Phase
should the employer establish it and equally matches the contributions of Employment (Standing Orders) Provincial
the workmen, the employer is then not liable to pay gratuity. Ordinance, 1968 & Shops And
Establishments Ordinance, 1969
126 Working Time and Late Coming: Publication of the working time has been Industrial & Commercial Labor Inspector, Every Phase
made obligatory for the employer. All workmen are required to be punctual; Employment (Standing Orders) Provincial and
in case of their late attendance or absence they are liable to proportionate Ordinance, 1968 & Shops And Chief Inspector of
deduction of their wages under the payment of Wages Act, 1936. Establishments Ordinance, 1969 & Mines, Islamabad
Mines Act, 1923
127 Weekly Day of rest: All offices must remain closed for at least one day in Industrial & Commercial Labor Inspector, Every Phase
each week which may either be Friday or Sunday. Deduction from wages Employment (Standing Orders) Provincial and
for such a weekly holiday is not permissible. (Please note that this provision Ordinance, 1968 & Shops And Chief Inspector of
does apply to drilling and production sites). Establishments Ordinance, 1969 & Mines, Islamabad
Mines Act, 1923
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128 Working Hours & Overtime: the working hours for adults are limited to nine Industrial & Commercial Labor Inspector, Every Phase
hours a day and forty eight (48) hours a week. The continuous working Employment (Standing Orders) Provincial and
time has been fixed at six (6) hours after which an interval for rest or meals Ordinance, 1968 & Shops And Chief Inspector of
of not less than one (1) hour must be given. Workers required to work in Establishments Ordinance, 1969 & Mines, Islamabad
excess of nine (9) hours a day, or forty eight (48) hours a week, must be Mines Act, 1923
paid overtime. In other words, if a worker works in excess of nine (9) hours
on any one day, he will be entitled to overtime for the time he works in
excess of nine (9) hours on that day. Similarly if the total number of his
working hours during any week are in excess of forty eight (48) hours, then
he would be entitled to overtime for the excess time. Overtime work to a
maximum of one hundred and fifty (150) hours in a year is permissible. In
case of overtime work, the wages payable to the employee in respect of
such overtime work must be calculated at double the ordinary rate of
wages payable to him/her.

129 Notwithstanding the above, Mines Act, 1923 restrict women to work at Mines Act, 1923 Chief Inspector of Every Phase
oilfields and well sites from 7 pm until 6 am. Mines, Islamabad

130 Termination: For terminating the employment of permanent workmen for Industrial & Commercial Labor Inspector, Every Phase
any reason other than misconduct, like want of work or retirement, one (1) Employment (Standing Orders) Provincial
months notice stating the reasons for such termination must be given. Ordinance, 1968 & Shops And
Establishments Ordinance, 1969
131 Similarly a worker must give one (1) months notice before resigning. One Industrial & Commercial Labor Inspector, Every Phase
(1) months wages calculated on the basis of average wages earned by the Employment (Standing Orders) Provincial
worker during the past three months can be paid by either party in lieu of Ordinance, 1968 & Shops And
notice. Establishments Ordinance, 1969
132 Retrenchment: Workers can be terminated on grounds of lack of work. In Industrial & Commercial Labor Inspector, Every Phase
such cases, however, the worker employed last in the category involved is Employment (Standing Orders) Provincial
to be retrenched first. And if r e-employment takes place within one (1) Ordinance, 1968 & Shops And
year, then the retrenched worker must be given priority in that category. Establishments Ordinance, 1969

133 Dismissal: For Terminating a worker on grounds of misconduct, the Industrial & Commercial Labor Inspector, Every Phase
procedure specified in Industrial and Commercial Employment (Standing Employment (Standing Orders) Provincial
Orders) Ordinance, 1968 must be strictly followed. Ordinance, 1968 & Shops And
Establishments Ordinance, 1969
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134 The Ordinance prohibits unfair labor practices, regulation of relations Industrial Relations Ordinance, 1969 National Industrial Every Phase
between employers and workman. Operator should be familiar with these & the Provincial Industrial Relations Relations Board
laws if labor union is formed. Rules, 1974 (In Case A Workers (NIRB)
Union Is Formed)
135 A show cause notice must be issued within one (1) month of misconduct; Industrial & Commercial Labor Inspector, Every Phase
the worker must be given an opportunity to explain his position in writing; Employment (Standing Orders) Provincial
after considering the workers response, if deemed necessary, an Ordinance, 1968 & Shops And
independent inquiry must be instituted. The worker during this inquiry is Establishments Ordinance, 1969
entitled to assistance of his/her colleague; and the approval of employer is
required before issuing the final dismissal letter.

136 During the aforesaid procedure, the employer has power to suspend the Industrial & Commercial Labor Inspector, Every Phase
worker for a period not exceeding four (4) days at a time. However such Employment (Standing Orders) Provincial
suspension must not exceed total of four (4) weeks. Ordinance, 1968 & Shops And
Establishments Ordinance, 1969
137 Misconduct for purposes of Industrial and Commercial Employment Industrial & Commercial Labor Inspector, Every Phase
(Standing Orders) Ordinance, 1968 is defined to mean: Willful Employment (Standing Orders) Provincial
insubordination or disobedience, whether alone or in combination with Ordinance, 1968 & Shops And
others, to any lawful and reasonable order of a superior; Theft, fraud, or Establishments Ordinance, 1969
dishonesty in connection with the employers business or property; Willful
damage to or loss of employers goods or property; Taking or giving bribes
or any illegal gratifications; Habitual absence without leave, or absence
without leave for more than ten (10) days; Habitual late attendance;
Habitual breach of any law applicable to the establishment; Riotous or
disorderly behavior during working hours at the establishment or any act
subversive of discipline; Habitual negligence or neglect of work; Frequent
repetition of any act, or omission referred to in clause (i) above; Striking
work or inciting other to strike in contravention of the provisions of any law,
or rule having the force of law; Go slow.

138 Act provides that the employer is bound to pay compensation to a worker Workers Compensation Act, 1923 Ministry of Labor, Every Phase
where personal injury has resulted in the course of the work. Operator shall GOP
ensure compliance with this Act.
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139 The Act applies to every industry or establishment where ten (10) or more Employees Old Age Benefits Act, EOBI Department, Every Phase
persons are employed. The employer is required every month to pay 5% of 1976 Ministry of Labor,
its employee's wages for wages in excess of Rs. 1500 per month; for GOP
employees performing managerial or administrative work; and for those
possessing professional degrees. Contributions cease upon the employee
attaining the age of sixty (60) years in case he is male, fifty five (55) years
in case she is female. The Federal Government matches the employers'
contribution, and pays the same to a fund under the Act. Subject to certain
conditions, an employee covered under the Act becomes entitled to receive
old age pension from this fund upon reaching the age of sixty (60) years, or
fifty five (55) years in case the employee is a female.

140 The employer is required to maintain records and registers for purposes of Employees Old Age Benefits Act, EOBI Department, Every Phase
the Act. Offences under this Act are punishable with fine of up to Rs. 1976 Ministry of Labor,
10,000 or imprisonment extending up to two years. A persistent default in GOP
payments under the Act may result in increasing of 50% of the original
amount due.
141 Form II Employment, Absenteeism, Overtime work and wages paid during Oil And Gas (Safety In Drilling And Chief Inspector of Every Phase
a year. Production) Regulations, 1974 Mines

142 Form VI Compensatory rest days and annual leave with wages allowed Oil And Gas (Safety In Drilling And Chief Inspector of Every Phase
during a year. Production) Regulations, 1974 Mines

143 Operator to inform partners about filing of any lawsuit against the joint JOA DGPC Also required for
venture partners. No settlement may be made by the operator without prior Appraisal, FDP &
approval of the partners. Production Phase.
144 Ensure that production records are maintained and delivered to DGPC E & P Rules DGPC Every Phase
upon becoming available in accordance with Petroleum Exploration &
Production Rules.
145 Annual report in respect of estimates of petroleum production and exports E & P Rules DGPC Every Phase
for each quarter for the following 2 years, to be submitted to the DGPC,
within 45 days of the end of such year.
146 The register of all persons employed in the mine shall be maintained as Consolidated Mines Rules, 1952, Chief Inspector of Every Phase
required by sub-section (1) of section 28 of the Act in the form shown in Mines Act, 1923 Mines
Schedule ‘A’. The registers shall be kept at the office of the mine and
entries in respect of persons employed in the mine shall be revised once in
every month.
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147 Register of overtime, register of annual leave with wages, and register of Consolidated Mines Rules, 1952, Chief Inspector of Every Phase
casual leave, sick leave and festival holidays in the formats provided in the Mines Act, 1923 Mines
rules shall be maintained.
148 The prescribed abstracts of the Mines Act, 1923 regulations, rules and bye- Consolidated Mines Rules, 1952, Chief Inspector of Every Phase
laws applicable to the mine shall be made available near every mine in Mines Act, 1923 Mines
Urdu or local vernacular.
149 Operator is to ensure the correct calculation, reporting and payment of the Pollution Charge For Industry Federal EPA & Every Phase
pollution charge, each year. (Calculation And Collection) Rules, Provincial EPA
2001
150 Operator should be familiar with these Rules as a claim may be filed Environmental Tribunal Rules, 2000 Environmental Every Phase
against the JV before the Environmental Tribunal. Tribunal,
Provincial
151 Operator should be familiar with these Rules, as a sample from the JV Environmental Sample Rules, 2001 Federal EPA & Every Phase
facility may be taken for testing, by the EPA in accordance with these Provincial EPA
Rules.
152 Operator should be familiar with these Regulations, as a sample from the National Environmental Quality Federal EPA & Every Phase
JV facility may be taken for testing at laboratories, by the EPA in Standards (Certification Of Provincial EPA
accordance with these Regulations. Environmental Laboratories)
Regulations, 2000
153 Operator should be familiar with these Rules, as hazardous substance may Hazardous Substances Rules, 2000 DCO, Provincial Every Phase
be present at a JV facility.
154 The polluter of environment can be punished under the Pakistan Penal Pakistan Penal Code, 1860 District Every Phase
Code, 1860. Therefore, operator shall ensure compliance with this Code. Magistrate,
Provincial
155 The polluter of environment can be classified as a criminal under the Code. Code of Criminal Procedure, 1898 District Every Phase
Magistrate,
Provincial
156 Operator to ensure that no hunting of endangered species which is Wildlife Birds And Animals Provincial Wildlife Every Phase
prohibited by this Act in certain areas is allowed to Operator personnel or Protection Act, 1912 Department
others in concession areas.
157 Operator to ensure that no wildlife is disturbed in violation of this Act by West Pakistan Wildlife Protection Provincial Wildlife Every Phase
Operator personnel or others in concession areas. Ordinance, 1959 Department

158 Operator to ensure that no wildlife is disturbed in violation of these rules by West Pakistan Wildlife Protection Provincial Wildlife Every Phase
Operator personnel or others in concession areas. Rules, 1961 Department
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159 The Act and the Rules prohibit keeping of any hawks/falcons without a Provincial Wildlife (Protection, Provincial Wildlife Every Phase
license. Preservation, Conservation & Department
Management) Act, 1974 & Provincial
Wildlife (Protection, Preservation,
Conservation & Management) Rules,
1977

160 Operator to ensure that no cutting of trees which is prohibited by this Act in Cutting Of Trees (Prohibition) Act, Forest Every Phase
certain areas is allowed to Operator personnel or others in concession 1975 Department,
areas. Provincial
161 This Act prohibits the clearing of forest for cultivation, grazing, hunting, Forest Act, 1927 Forest Every Phase
removing forest produce; quarrying and felling, lopping and topping of Department,
trees, branches in reserved or protected areas. Operator shall ensure Provincial
compliance with this Act.
162 Operator to obtain permission of the Forest Officer, in case any operations Forest Act, 1927 Forest Every Phase
are conducted in the areas classified as the forests under this Act. Department,
Provincial
163 Operator to ensure that no activity is undertaken in the proximity of a Antiquities Act, 1975 Archaeology Every Phase
protected antiquity, provided under this Act. Department,
Provincial
164 Operator to obtain permission of the relevant Museum Officer, in case any Antiquities Act, 1975 Archaeology Every Phase
operations are conducted in the areas classified as the antiquities under Department,
this Act. Provincial
165 Operator to ensure compliance with this Act, in case epidemic breaks out West Pakistan Epidemic Diseases District Health Every Phase
on Operator facilities. Act, 1958 Officer, Provincial

166 Operator to ensure general compliance with all standards stipulated in the Oil And Gas (Safety In Drilling And Chief Inspector of Every Phase
Oil and Gas (Safety in Drilling & Production) Regulations, 1974, while Production) Regulations, 1974 Mines
conducting drilling and production operations.
167 Operator to ensure that it follows the DGPC Guidelines for Operational DGPC Guidelines For Operational DGPC Every Phase
Safety, Health and Environmental Management in Pakistan Petroleum Safety, Health And Environmental
Exploration and Production Sector, while conducting petroleum operations. Management (Petroleum Exploration
And Production Sector), 1996

168 Operator to ensure that it complies with these emission standards while National Environmental Quality Federal EPA & Every Phase
conducting petroleum operations. Standards, 1993 Provincial EPA
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169 Operator to submit environmental monitoring reports to the Federal EPA National Environmental Quality Federal EPA & Every Phase
timely and correctly. Standards (Self Monitoring And Provincial EPA
Reporting By Industry) Rules, 2001

170 Pakistan Nuclear Safety & Radiation Protection Regulations, 1990 Pakistan Nuclear Safety And Pakistan Atomic Every Phase
prescribe the procedure for obtaining the license from the Pakistan Atomic Radiation Protection Regulations, Energy
Energy Commission for NORM. 1990 (For Norm Deposits In Commission
Condensate Storage Tank) PAEC
171 The forest property will not be damaged and in case damage occurs during Exploration License/Forest Act, DGPC Every Phase
any survey, the licensees shall be responsible for it as per provisions of the 1927.
Forest Act, 1927.
172 The licensees will not use forest roads without permission. However, where Exploration License DGPC Every Phase
the use of these roads is permitted, the licensees will be responsible for
proper maintenance of such roads.
173 Form III Accidents, First aid room visits and prosecutions during a year. Oil And Gas (Safety In Drilling And Chief Inspector of Every Phase
Production) Regulations, 1974 Mines

174 Form IV Epidemic disease during a year. Oil And Gas (Safety In Drilling And Chief Inspector of Every Phase
Production) Regulations, 1974 Mines

175 Form V Aggregate Horse power of electrical apparatus installed. Oil And Gas (Safety In Drilling And Chief Inspector of Every Phase
Production) Regulations, 1974 Mines

176 Operator shall ensure compliance with the health and safety provisions of Consolidated Mines Rules, 1951 Chief Inspector of Every Phase
these Rules, including the provisions of canteens, shelters, medical Mines
appliances, and first aid rooms.
177 The management shall display copies of the Code in English as well as in Protection Against Harassment of Federal Every Phase
language understood by the majority of employees at conspicuous place in Women at Workplace Bill, 2010 Ombudsman
the organization and the work place within six months of the Secretariat For
commencement of this Act. Protection Against
Harassment of
Women At Work
Place
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178 Protection of factories and mines – (1) The Central Government or the The Civill Defence (Special Powers) Central or Every Phase
Provincial Government may by order require the owner, manager or agent Rules, 1951 Provincial
of any mine, or the occupier or Manager of any factory :- Government
(a) to make, within such period as may be specified in the order, a report in
writing stating the measures which he has taken or is taking or proposing to
take to secure the due functioning of the mine or factory, and the safety of
persons and property therein and in the vicinity thereof in the event of an
out break of fire whether caused by accident or otherwise;
(b) to take, with in such period as may be specified in the order, such
measures as may be so specified, being measures that taking of which is
in the opinion of the Central Government or the Provincial Government
necessary for the purposes aforesaid

179 Central Government may authorize any perosn to enter and inspect any The Civill Defence (Special Powers) Central or Every Phase
factory or mine for the purpose of ascertaining what measures Rules, 1951 Provincial
have been or ought to be taken to secure the due functioning of the mine Government

180 Employers has to pay a contribution to Provincial Social Security Institution Provinicial employees Social Provincial Social Every Phase.
(for every employee, employed directly or through any other person )at a Security Ordinance of 1965 Security Institution But requires more
prescribed rate. research as to the
applicability/relevancy.

181 The Operator has to comply with the Instructions issued by Key Point KPID Instruction (Green Book) on Central Once Facilities are in
Installations Department for its premises/properties/plant/facilities. Key Points Government place.
182 Acquisition/requisition of any immovable properties for the sake of civil The Civill Defence Act, 1952 Central or Every Phase
defense. the entry into, and search of, any place reasonably suspected of Provincial
being used for any purpose prejudicial to civil defence and for the seizure Government
and disposal of anything found there and reasonably suspected of being
used for such purpose.

Abbreviations Used in the Document Note:

Authorization for Expenditure AFE Red Fonts New Insertions
Central Board of Revenue CBR Underline Needs research
Community Development CD
Chief Inspector of Explosives CIE
Chief Inspector of Mines CIM
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CIB PD ICL
Chief Inspector of Boilers (Provincial Directorate of Industries, Commerce
& Labour)
Development and Production D&P
Electric Inspector (Provincial Energy & Power Department) EI PE & PD
Environmental Protection Agency EPA
Exploration EXPL
Frequency Allocation Board FAB
Field Development Plan FDP
CF & Planning
Government GOV
Geological & Geophysics G&G
Liquid Petroleum Gas LPG
No Objection Certificate NOC
Operating Committee Meeting OCM
Pakistan Atomic Energy Comission PAEC
Petroleum Concession Agreement PCA
Provincial Inspector Weights & Measures PIWM
Production PROD
Projects & Facilities Engineering Services P&TS
Sustainable Development & Health Safety and Environment SD & SD & HSE