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Legal Compliance Register for E & P Operations

No Provision(s) Regulations, Law, Concessionary Document

Authority/Stakeholders Remarks

Establishment of Office/Entry to a Block1 Pre-qualification, application and bidding round for New License E & P Rules DGPC Every time a Bidding

Round occurs2 Grant of EL & Signing of PCA E & P Rules DGPC When Required3 Approval for Assignment of Working Interests- For Farm in and Farm

outE & 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 Phase6 Operator shall obtain work visas for its expatriate employees

pursuant to this procedure.BOI GOP (Work Visa Procedure)

BOI Every Phase

7 The licensees will ensure that all the foreigners involved in exploration are 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.

Exploration License DGPC Every Phase

8 Operator to ensure general compliance with all requirements stipulated in this Act, and the rules and regulations promulgated thereunder.

Foreigners Act, 1946 Superintendent Police, Provincial

Every Phase

9 This Order lays down requirements for monitoring movement of foreigners in Pakistan. Further, military commanders of cantonment areas have powers to remove foreigners from any cantonment area.

Foreigners Order, 1951 Superintendent Police, Provincial

Every Phase

10 The Foreigners Rules, 1966 deal with procedural matters including report by a foreigner of his arrival into Pakistan, report of change of residential address, report to be made by hotelkeepers etc.

Registration of Foreigners Rules, 1966

Superintendent Police, Provincial

Every Phase

11 Operator is to register foreigners pursuant to the Registration of Foreigners Rules, 1966 and Registration of Foreigners Exemption Order, 1966.

Registration Of Foreigners Exemption Order, 1966

Superintendent Police, Provincial

Every Phase

12 Field Visits intimation for obtaining escort of security Not Known DGPC, MOI, Provincial Govt

Every Phase

13 The licensees will approach the Survey of Pakistan for issuance of maps in 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 matters.

PCA DGPC Every Phase

15 Operator to keep foreign exchange contributions of the working interest 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 notice to JVP. OCM can be cancelled with the consent of JVP if no issue is required to be discussed.

JOA DGPC Every Phase

17 Minutes of the OCM have to be circulated by the Operator to partners within stipulated days requirements in PCAs.

JOA DGPC/JVP Every Phase

18 Approvals from partners may be sought without holding an OCM through circulation of a resolution. Deemed vote in favor by the party not responding within Given time in PCA.

JOA JVP Every Phase

19 Approvals from partners may also be sought within given time for non 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.

JOA JVP Every Phase

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 License or the application for grant extension or renewal of any Lease(s ).

JOA JVP Every Phase

22 Prior approval of JVP is required for Surrendering of any pan of the Area or of any Lease.

JOA JVP Every Phase

23 Prior approval of JVP for selection of any areas outside the License Area for which application may be made by the parties jointly.

JOA JVP Every Phase

24 Prior approval of JVP is required for Budgets,work programmes, revisions and amendments thereto.

JOA JVP Every Phase

25 Operator to submit proposed annual work program and budget to partners, 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 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 consultants, technical services and award of contracts on bids for geophysical, drilling and well completion operations in accordance with JOA.

JOA JVP Every Phase

28 Prior approval of JVP for finalizing the terms of recommended bid for contracts having value as per PCA.


29 At least 10% of the computer software contracts shall be awarded to local contractors provided such services are at competitive price.


30 All geological, geophysical, well and other technical data obtained from GOP is to be treated strictly confidential.

PCA DGPC Every Phase.

31 All mapping information including sketches and photography to be prepared by the licensees concerning the license area shall not be released to anyone except as permissible under the Concession Agreement and the Rules.

Exploration License DGPC Every Phase.

32 Operator to submit to Provincial EPA, Environmental Impact Assessment(EIA) for shooting of seismic in national reserves or parks, prior to Seismic & Drilling Operations.

Pakistan Environmental Protection Agency (Review of IEE and EIA) Regulations, 2000

Federal EPA &Provincial EPA

For drilling of Exp/App/Dev/Abon. Well/Field

33 Operator to submit to Provincial EPA, Initial Environmental Examination(IEE) for all seismic Operations, prior to Seismic & Drilling Operations.

Pakistan Environmental Protection Agency (Review of IEE and EIA) Regulations, 2000

Federal EPA & Provincial EPA

For drilling of Exp/App/Dev/Abon. Well/Field

34 The data and test results shall not be exported outside Pakistan without prior clearance from DGPC.

Exploration License DGPC Every Phase.

35 Operator shall submit applications to the Government of Provincial (Land Acquisitions Collector/ EDO Revenue) pursuant to these laws for petroleum operations

Land Acquisition Act, 1894 (and rules promulgated thereunder from time to time)

EDO, Provincial (Civil Works - Well Site preparation, Access Roads, Production Facilities etc).

36 Prior approval of JVP is required for well location, drilling, testing, deepening, plugging back, completion, re-working or abandonment of wells.

PCA,JOA JVP For Expl/app/dev/Abond Well activity in Each Phase.

37 Notices for commencement of well activity related to drilling, Suspension or abandonment (on prescribed form) to be submitted to the DGPC for approval, prior to commencement of such activity.

E & P Rules DGPC/CIM For Expl/app/dev/Abond Well activity in Each Phase.

38 Operator to ensure general compliance with all standards stipulated in the Oil and Gas (Safety in Drilling & Production) Regulations, 1974, while conducting drilling and production operations.

Oil And Gas (Safety In Drilling And Production) Regulations, 1974

Chief Inspector of Mines

For Expl/app/dev Well activity in Each Phase.

39 Well commencement notice is required to be filed with the Chief Inspector of Mines prior to drilling of a well as per Form-VII.



For Expl/app/dev Well activity in Each Phase.

40 Operator to ensure that contractor obtains chief inspector of explosives license for the storage of explosives during drilling, Well testing at sites.

Explosives Act, 1884 (for Import And Storage Of Explosives Materials)

Chief Inspector of Explosives, Provincial

Also required for Appraisal, FDP & Production Phase.

41 Operator to ensure general compliance with all standards stipulated in the Electricity Act 1910 and the Electricity Rules, 1937, pertaining to Petroleum Operations(Rule 95-116), in respect of electrical installations at petroleum drilling and production sites(for Power Generation).

Electricity Act, 1910 (For Electrical Installations At Well Sites/Production Facilities)

Electricity, Inspector, Provincial


42 Operator to obtain an electrical contractors license which in turn requires hiring an electrical supervisor licensed under the Electricity Act 1910.

Electricity Act, 1910 (For Electrical Installations At Well Sites/Production Facilities)



43 Operator to file returns in respect of electrical installations at petroleum drilling and production sites for each calendar year prior to February 1 of each year. These forms are prescribed in Annexure IX of the Electricity Rules 1937.

Electricity Rules, 1937 (For Electrical Installations at Well Sites/Production Facilities)



44 Operator to ensure general compliance with all standards stipulated in the Petroleum Act 1910 and the Petroleum Rules, 1937, in respect of storage and transportation of petroleum and inflammable chemicals.

Petroleum Act, 1934 (for Storage And Transportation Of Petroleum And Inflammable Chemicals)



45 Monthly progress reports (of G & G work, drilling, etc.) to be submitted to the DGPC, within 5 days of each month.

E & P Rules DGPC Also required for 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 Production) Regulations, 1974



48 Notices for appointment and change of company manager and well manager.




49 Notices in case of accidents. Oil And Gas (Safety In Drilling And Production) Regulations, 1974



50 Notices for occupational diseases. Oil And Gas (Safety In Drilling And Production) Regulations, 1974



51 Operator to ensure that contractor submit applications to the chief inspector of explosives for license for the storage facility storing explosives(Petroleum) during Drilling of a well.




52 If a well shows presence of petroleum report it immediately/ within 24 hours.

E & P Rules DGPC & JVP Also required for Appraisal, FDP & Production Phase.

53 Get the approval of JVP for the submission of Press Release to Government/DGPC for approval.

E & P Rules JVP & DGPC -

54 A further report within 7 days of the discovery notice under applicable petroleum rules.

E & P Rules DGPC & JVP -

55 Within 1 month of the completion or abandonment of well, a comprehensive report to be submitted to the DGPC.

E & P Rules DGPC & JVP -

56 To inform the DGPC, whether or not the Discovery, in the opinion of the Working Interest Owners, Discovery merits appraisal. Prior approval of JVPs is also obtained.

PCA DGPC & JVP -

57 Operator to seek permission of DGPC to flare gas or for returning gas in subsurface.


58 Miscellaneous Well Notice- Testing, Completion, Suspension & Abandonment

E & P Rules & Mines Act 1923 DGPC, CIM Every Phase

59 Miscellaneous Well Notice-Workovers E & P Rules & Mines Act 1923 DGPC, CIM Every Phase60 Operator to obtain chief inspector of explosives license for the

storage of explosives at Production Facilities for test production facilities.



Every Phase

61 Operator to obtain the "certificate of verification" for the weigh bridges.

Provincial Standard & Weight Measures Enforcement Act, 1976(KPK III of 1976)

Inspecor Weights & Measures

Annually; once Production commences

Appraisal Phase

62 All sort of approvals that have been secured in Exploration phase, wherein Remarks column it is mentioned "For every phase", will have to be secured during Appraisal Phase.

various as given in Exploration Phase


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63 If the Operator notifies DGPC give notice "that Discovery merits appraisal", an appraisal programme along with its budget should be submitted to DGPC.Prior approval of JVPs is also obtained.

PCA & JOA DGPC & JVP -

64 Operator shall not start production from any well before testing and making 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 sales are prohibited by GOP.

PCA DGPC During EWT production & Commercial Phase

69 The Operator has to inform the DGPC with the approval of the Operating Committee that discovery is a commercial discovery under applicable petroleum rules along with the Commerciality Report.

E & P Rules DGPC & JVP-

70 Prior approval of JVP is required for Declaration of Commerciality of a Discovery to Government.

JOA JVP-

71 Gas price Notifications-EWT & commercial phases Natural Gas (Price For Supplies By Producers) Rules, 1976

OGRA, DG Gas For Commercial/Development Phase as well

72 Crude Oil/Condensate Sales Agreements- If Production is allocated to Govt.

PCA DG Oil For 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

77 Prior approval of JVP is required for Petroleum availability forecast giving the total quantities of Petroleum which can be produced from the Area in any Quarter taking into consideration the Maximum Efficient Rate (MER) of 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.

JOA JVP For Commercial/Development Phase as well

Development Phase78 All sort of approvals that have been secured in Exploration phase,

Appraisal phase wherein Remarks column it is mentioned "For every phase", will have to be secured during Development Phase.



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79 Prior approval of JVP for submission of Development Plan & Lease application, to DGPC, for a field and the vertical and horizontal boundaries for any Discovery Area.

JOA JVP-

80 Field Development Plan and application for D & P lease to be submitted within 6 months of DOC.

E & P Rules DGPC & JVP-

81 The holder shall not flare any natural gas or use it to create or increase the pressure in the reservoir without the Government’s approval.

E & P Rules DGPC-

Prior approval of JVP is required for, applying unitization request to Govt., any acreage in the Lease with acreage outside the Lease.

JOA JVP-

82 Ensure that petroleum produced from reservoir is on maximum efficient rate (MER)

E & P Rules/PCA DGPC-

83 License for import of Dangerous Petroleum is required also, unless exempted under Petroleum Rules, 1937.

Petroleum Rules, 1937 (for Storage And Transportation Of Petroleum And Inflammable Chemicals)

Chief Inspector of Explosives, Provincial -

84 Operator to obtain chief inspector of explosives license for the storage of explosives at Production Facilities.



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Production Phase85 All sort of approvals that have been secured in Exploration phase,

wherein Remarks column it is mentioned "For every phase", or in Appraisal Phase "For Commercial/Development Phase as well "will have to be secured during Development Phase.

various as given in Exploration , appraisal Phase

various as given in Exploration, Appraisal 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 -88 To obtain the License for extraction of LPG Liquefied Petroleum Gas

(Production and Distribution) Rules, 2001 and the OGRA Ordinance 2002

OGRA

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Abandonment Phase

89 Only those approval will have to be secured which relate to this phase.

Only relevant approvals of the previous phases

Only relevant approvals of the previous phases

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

E & P Rules DGPC License Abandonment

91 When a permit or License has expired or has been surrendered wholly or 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.

E & P Rules DGPC License Abandonment

92 At least one year prior to termination, the holder of a lease shall submit to 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

E & P Rules DGPC D & P Lease

93 Return of the Parent Company Guarantees to be sought upon expiry of the petroleum Development and Production Lease.

E & P Rules DGPC Dev

Other Recurrent Compliance Activities94 Flying over the area shall not be allowed without permission of the

concerned security agencies.Exploration License DGPC Every Phase

95 No Global Positioning System is to be used by the licensees. Exploration License DGPC Every Phase96 Ensure that well records are maintained and delivered to DGPC upon

becoming available in accordance with Petroleum Exploration & Production Rules.


97 The licensees will ensure that none of its employees, contractors or 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 accordance with the provisions of the petroleum policy and the guidelines issued by the GOP from time to time.

PCA/ E& P Policy DGPC Every Phase.

99 Licensees will deposit the advance rent as prescribed as per the Petroleum Rules. A receipted copy of the treasury challan in respect of advance rent of the license will be sent to DGPC.

Exploration License/E & P Rules DGPC Every Phase for block and Leases.

100 Prior approval of JVP is required for all press releases and publicity 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.

JOA JVP/DGPC Every Phase.

101 Licensees will pay suitable rent if forest and other government land is utilized. There will be no prohibition in carrying out forest works in the license area by the concerned department.

Exploration License/Land Acquisition Act.

DGPC Every Phase

102 Canal patrol bank will not be used for running machinery along the channels. In case it is used when no alternate is available, the cost for its 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.

Exploration License DGPC/Provincial Govt.

Every Phase

103 Subject to a 10% variation allowance, operator to ensure that no work is undertaken which is not backed by an approved budget and AFE.


104 Ensure that originals of all records and accounts are kept in Pakistan, unless otherwise approved by the DGPC.


105 Annual report in respect of exploration/production/ development activity 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 to the DGPC, within 3 months of end of such year.


107 Annual report in respect of economically recoverable reserves at the end of 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 obligations under applicable petroleum rules.


109 Operator to withhold tax when making any payments subject to income tax at various rates specified in this Ordinance.

Income Tax Ordinance, 1979 Income Tax Department, CBR, GOP

Every Phase

110 Per Sales Tax Act, 1990, Sales Tax (Amendment) Ordinance, 1999 and SRO 922(1)/99 dated august 16, 1999, sales tax at the rate of 15% is applicable for crude oil and natural gas sold by Operator to the government (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.

Sales Tax Act, 1990 (as mended by Sales Tax (Amendment) Ordinance, 1999)

Sales Tax Department, CBR, GOP

Every Phase

111 Operator is required to deposit that sales tax along with its return on 15th day of each month, which is indicated as "sales tax payable" in its return.

Sales Tax Act, 1990 (as mended by Sales Tax (Amendment) Ordinance, 1999)

Sales Tax Department, CBR, GOP

Every Phase

112 The First Schedule of the Central Excises Act 1944 (as amended by the Finance Act 1944) levied the rate of duty at Rs. 50 per hundred cubic meters on all petroleum gases and other gaseous hydrocarbons. Operator to compute and thereafter pay excise duties to the excise authorities in Province.

Central Excise Act, 1944 Excise Department, Provincial

Every Phase

113 Operator shall have working knowledge of this Act, as any administrative appeals filed against the orders of customs authorities regarding imports of the Operator follows the procedure laid out in this Act.

Customs Act, 1969 Customs Department, CBR, Government of Pakistan

Every Phase

114 These SRO relates to exemption from duties and taxes on import of machinery, equipment, materials, consumables etc. by the E&P companies including Operator. All requests to the DGPC for import authorization should comply with this SRO.

SRO 400(I)/97 Customs Department, CBR, Government of Pakistan.

Every Phase

115 Operator shall ensure that it does not import items included in this list.

CGO-7/98 (List Of Locally Manufactured Items)

Engineering Development Board (EDB), Islamabad

Every Phase

116 Although there is no specific provision in the Registration Act, 1908 concerning registration of petroleum rights documents (i.e. reconnaissance 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.

Registration Act, 1908 (For Registration Of Certain Documents)

Sub-Registrar, Provincial

Every Phase

117 Operator shall stamp all documents, which are likely to be registered or presented in Courts in accordance with this Act.

Stamp Act, 1899 (For Stamping of Certain Documents)

Sub-Registrar, Provincial and relevant Courts

Every Phase

118 Operator to ensure that all contracts governed by the Pakistani law comply with this Act.

Contracts Act, 1872 (Governing All Contracts Signed In

Sub-Registrar, Provincial

Every Phase

Pakistan)119 Operator to ensure general compliance with all standards stipulated

in the Pakistan Nuclear Regulatory Authority ordinance, 2001 and the rules promulgated thereunder, if NORM (naturally occurring radioactive materials) is encountered in petroleum storage vessels during petroleum production operations.

Pakistan Nuclear Regulatory Authority Ordinance, 2001 (For Norm Deposits In Condensate Storage Tank)

Pakistan Atomic Energy Commission PAEC

Every Phase

120 Form-I Well or Field Data during a year to be submitted on or before February 21 of each year.



Every Phase

121 The local irrigation authorities will be informed in advance before any particular area is taken for exploration purposes. No irrigation structures including canals, head works, small dams, flood bunds and tube wells etc. will be damaged during joint operations. Such operations will be undertaken at a reasonable distance from either side of the channels, main 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.

Exploration License DGPC, Irrigation Department, Forest Dept, Archeological Dept.,

Every Phase

122 Operator shall ensure compliance with these labor laws which provide for certain labor rights, based on international labor law conventions, to which Pakistan is a signatory.

Industrial & Commercial Employment (Standing Orders) Ordinance, 1968 (The Primary Workers Rights Law Applicable To 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)

Labor Inspector, Provincial and Chief Inspector of Mines, Islamabad

Every Phase

123 Bonus: Every worker, employed continuously for not less than ninety (90) days during a year in which profit is made, is entitled to get a specified bonus out of company profits.

Industrial & Commercial Employment (Standing Orders) Ordinance, 1968 & Shops And Establishments Ordinance, 1969

Labor Inspector, Provincial

Every Phase

124 Gratuity: Gratuity is payable to a worker upon his retirement or termination for any reason other than misconduct. It is payable at the rate of twenty (20) days wages for every completed year of service, or any part thereof, in excess of six (6) months. It is, however, not payable by employers who have established a provident fund.



Every Phase

125 Provident Fund: The establishment of a provident fund is not obligatory but should the employer establish it and equally matches the contributions of the workmen, the employer is then not liable to pay gratuity.



Every Phase

126 Working Time and Late Coming: Publication of the working time has been made obligatory for the employer. All workmen are required to be punctual; in case of their late attendance or absence they are liable to proportionate deduction of their wages under the payment of Wages Act, 1936.

Industrial & Commercial Employment (Standing Orders) Ordinance, 1968 & Shops And Establishments Ordinance, 1969 & Mines Act, 1923


Every Phase

127 Weekly Day of rest: All offices must remain closed for at least one day in each week which may either be Friday or Sunday. Deduction from wages for such a weekly holiday is not permissible. (Please note that this provision does apply to drilling and production sites).



Every Phase

128 Working Hours & Overtime: the working hours for adults are limited to nine hours a day and forty eight (48) hours a week. The continuous working time has been fixed at six (6) hours after which an interval for rest or meals of not less than one (1) hour must be given. Workers required to work in excess of nine (9) hours a day, or forty eight (48) hours a week, must be 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.



Every Phase

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

Mines Act, 1923 Chief Inspector of Mines, Islamabad

Every Phase

130 Termination: For terminating the employment of permanent workmen for any reason other than misconduct, like want of work or retirement, one (1) months notice stating the reasons for such termination must be given.



Every Phase

131 Similarly a worker must give one (1) months notice before resigning. One (1) months wages calculated on the basis of average wages earned by the worker during the past three months can be paid by either party in lieu of notice.



Every Phase

132 Retrenchment: Workers can be terminated on grounds of lack of work. In such cases, however, the worker employed last in the category involved is to be retrenched first. And if r e-employment takes place within one (1) year, then the retrenched worker must be given priority in that category.



Every Phase

133 Dismissal: For Terminating a worker on grounds of misconduct, the procedure specified in Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 must be strictly followed.



Every Phase

134 The Ordinance prohibits unfair labor practices, regulation of relations between employers and workman. Operator should be familiar with these laws if labor union is formed.

Industrial Relations Ordinance, 1969 & the Provincial Industrial Relations Rules, 1974 (In Case A Workers Union Is Formed)

National Industrial Relations Board (NIRB)

Every Phase

135 A show cause notice must be issued within one (1) month of misconduct; the worker must be given an opportunity to explain his position in writing; after considering the workers response, if deemed necessary, an independent inquiry must be instituted. The worker during this inquiry is entitled to assistance of his/her colleague; and the approval of employer is required before issuing the final dismissal letter.



Every Phase

136 During the aforesaid procedure, the employer has power to suspend the worker for a period not exceeding four (4) days at a time. However such suspension must not exceed total of four (4) weeks.



Every Phase

137 Misconduct for purposes of Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 is defined to mean: Willful insubordination or disobedience, whether alone or in combination with others, to any lawful and reasonable order of a superior; Theft, fraud, or 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.



Every Phase

138 Act provides that the employer is bound to pay compensation to a worker where personal injury has resulted in the course of the work. Operator shall ensure compliance with this Act.

Workers Compensation Act, 1923

Ministry of Labor, GOP

Every Phase

139 The Act applies to every industry or establishment where ten (10) or more persons are employed. The employer is required every month to pay 5% of its employee's wages for wages in excess of Rs. 1500 per month; for 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.

Employees Old Age Benefits Act, 1976

EOBI Department, Ministry of Labor, GOP

Every Phase

140 The employer is required to maintain records and registers for purposes of the Act. Offences under this Act are punishable with fine of up to Rs. 10,000 or imprisonment extending up to two years. A persistent default in payments under the Act may result in increasing of 50% of the original amount due.

Employees Old Age Benefits Act, 1976

EOBI Department, Ministry of Labor, GOP

Every Phase

141 Form II Employment, Absenteeism, Overtime work and wages paid during a year.



Every Phase

142 Form VI Compensatory rest days and annual leave with wages allowed during a year.



Every Phase

143 Operator to inform partners about filing of any lawsuit against the joint venture partners. No settlement may be made by the operator without prior approval of the partners.

JOA DGPC Also required for Appraisal, FDP & Production Phase.

144 Ensure that production records are maintained and delivered to DGPC upon becoming available in accordance with Petroleum Exploration & Production Rules.


145 Annual report in respect of estimates of petroleum production and exports 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 required by sub-section (1) of section 28 of the Act in the form shown in 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.

Consolidated Mines Rules, 1952, Mines Act, 1923


Every Phase

147 Register of overtime, register of annual leave with wages, and register of casual leave, sick leave and festival holidays in the formats provided in the rules shall be maintained.



Every Phase

148 The prescribed abstracts of the Mines Act, 1923 regulations, rules and bye-laws applicable to the mine shall be made available near every mine in Urdu or local vernacular.



Every Phase

149 Operator is to ensure the correct calculation, reporting and payment of the pollution charge, each year.

Pollution Charge For Industry (Calculation And Collection) Rules, 2001


Every Phase

150 Operator should be familiar with these Rules as a claim may be filed against the JV before the Environmental Tribunal.

Environmental Tribunal Rules, 2000

Environmental Tribunal, Provincial

Every Phase

151 Operator should be familiar with these Rules, as a sample from the JV facility may be taken for testing, by the EPA in accordance with these Rules.

Environmental Sample Rules, 2001


Every Phase

152 Operator should be familiar with these Regulations, as a sample from the JV facility may be taken for testing at laboratories, by the EPA in accordance with these Regulations.

National Environmental Quality Standards (Certification Of Environmental Laboratories) Regulations, 2000


Every Phase

153 Operator should be familiar with these Rules, as hazardous substance may be present at a JV facility.

Hazardous Substances Rules, 2000

DCO, Provincial Every Phase

154 The polluter of environment can be punished under the Pakistan Penal Code, 1860. Therefore, operator shall ensure compliance with this Code.

Pakistan Penal Code, 1860 District Magistrate, Provincial

Every Phase

155 The polluter of environment can be classified as a criminal under the Code.

Code of Criminal Procedure, 1898

District Magistrate, Provincial

Every Phase

156 Operator to ensure that no hunting of endangered species which is prohibited by this Act in certain areas is allowed to Operator personnel or others in concession areas.

Wildlife Birds And Animals Protection Act, 1912

Provincial Wildlife Department

Every Phase

157 Operator to ensure that no wildlife is disturbed in violation of this Act by Operator personnel or others in concession areas.

West Pakistan Wildlife Protection Ordinance, 1959


Every Phase

158 Operator to ensure that no wildlife is disturbed in violation of these rules by Operator personnel or others in concession areas.

West Pakistan Wildlife Protection Rules, 1961


Every Phase

159 The Act and the Rules prohibit keeping of any hawks/falcons without a license.

Provincial Wildlife (Protection, Preservation, Conservation & Management) Act, 1974 & Provincial Wildlife (Protection, Preservation, Conservation & Management) Rules, 1977


Every Phase

160 Operator to ensure that no cutting of trees which is prohibited by this Act in certain areas is allowed to Operator personnel or others in concession areas.

Cutting Of Trees (Prohibition) Act, 1975

Forest Department, Provincial

Every Phase

161 This Act prohibits the clearing of forest for cultivation, grazing, hunting, removing forest produce; quarrying and felling, lopping and topping of trees, branches in reserved or protected areas. Operator shall ensure compliance with this Act.

Forest Act, 1927 Forest Department, Provincial

Every Phase

162 Operator to obtain permission of the Forest Officer, in case any operations are conducted in the areas classified as the forests under this Act.

Forest Act, 1927 Forest Department, Provincial

Every Phase

163 Operator to ensure that no activity is undertaken in the proximity of a protected antiquity, provided under this Act.

Antiquities Act, 1975 Archaeology Department, Provincial

Every Phase

164 Operator to obtain permission of the relevant Museum Officer, in case any operations are conducted in the areas classified as the antiquities under this Act.

Antiquities Act, 1975 Archaeology Department, Provincial

Every Phase

165 Operator to ensure compliance with this Act, in case epidemic breaks out on Operator facilities.

West Pakistan Epidemic Diseases Act, 1958

District Health Officer, Provincial

Every Phase

166 Operator to ensure general compliance with all standards stipulated in the Oil and Gas (Safety in Drilling & Production) Regulations, 1974, while conducting drilling and production operations.



Every Phase

167 Operator to ensure that it follows the DGPC Guidelines for Operational Safety, Health and Environmental Management in Pakistan Petroleum Exploration and Production Sector, while conducting petroleum operations.

DGPC Guidelines For Operational Safety, Health And Environmental Management (Petroleum Exploration And Production Sector), 1996

DGPC Every Phase

168 Operator to ensure that it complies with these emission standards while conducting petroleum operations.

National Environmental Quality Standards, 1993


Every Phase

169 Operator to submit environmental monitoring reports to the Federal EPA timely and correctly.

National Environmental Quality Standards (Self Monitoring And Reporting By Industry) Rules, 2001


Every Phase

170 Pakistan Nuclear Safety & Radiation Protection Regulations, 1990 prescribe the procedure for obtaining the license from the Pakistan Atomic Energy Commission for NORM.

Pakistan Nuclear Safety And Radiation Protection Regulations, 1990 (For Norm Deposits In Condensate Storage Tank)

Pakistan Atomic Energy Commission PAEC

Every Phase

171 The forest property will not be damaged and in case damage occurs during any survey, the licensees shall be responsible for it as per provisions of the Forest Act, 1927.

Exploration License/Forest Act, 1927.

DGPC Every Phase

172 The licensees will not use forest roads without permission. However, where 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.



Every Phase

174 Form IV Epidemic disease during a year. Oil And Gas (Safety In Drilling And Production) Regulations, 1974


Every Phase

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


Every Phase

176 Operator shall ensure compliance with the health and safety provisions of these Rules, including the provisions of canteens, shelters, medical appliances, and first aid rooms.

Consolidated Mines Rules, 1951 Chief Inspector of Mines

Every Phase

177 The management shall display copies of the Code in English as well as in language understood by the majority of employees at conspicuous place in the organization and the work place within six months of the commencement of this Act.

Protection Against Harassment of Women at Workplace Bill, 2010

Federal Ombudsman Secretariat For Protection Against Harassment of Women At Work Place

Every Phase

178 Protection of factories and mines – (1) The Central Government or the Provincial Government may by order require the owner, manager or agent of any mine, or the occupier or Manager of any factory :-(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

The Civill Defence (Special Powers) Rules, 1951

Central or Provincial Government

Every Phase

179 Central Government may authorize any perosn to enter and inspect any factory or mine for the purpose of ascertaining what measures have been or ought to be taken to secure the due functioning of the mine

The Civill Defence (Special Powers) Rules, 1951

Central or Provincial Government

Every Phase

180 Employers has to pay a contribution to Provincial Social Security Institution (for every employee, employed directly or through any other person )at a prescribed rate.

Provinicial employees Social Security Ordinance of 1965

Provincial Social Security Institution

Every Phase.But requires more research as to the applicability/relevancy.

181 The Operator has to comply with the Instructions issued by Key Point Installations Department for its premises/properties/plant/facilities.

KPID Instruction (Green Book) on Key Points

Central Government

Once Facilities are in place.

182 Acquisition/requisition of any immovable properties for the sake of civil defense. the entry into, and search of, any place reasonably suspected of being used for any purpose prejudicial to civil defence and for the seizure and disposal of anything found there and reasonably suspected of being used for such purpose.

The Civill Defence Act, 1952 Central or Provincial Government

Every Phase

Abbreviations Used in the Document Note:Authorization for Expenditure AFE Red Fonts New InsertionsCentral Board of Revenue CBR Underline Needs researchCommunity Development CDChief Inspector of Explosives CIEChief Inspector of Mines CIMChief Inspector of Boilers (Provincial Directorate of Industries, Commerce & Labour)

CIB PD ICL

Development and Production D&PElectric Inspector (Provincial Energy & Power Department) EI PE & PDEnvironmental Protection Agency EPAExploration EXPLFrequency Allocation Board FABField Development Plan FDPCF & Planning Government GOVGeological & Geophysics G&GLiquid Petroleum Gas LPGNo Objection Certificate NOC Operating Committee Meeting OCMPakistan Atomic Energy Comission PAECPetroleum Concession Agreement PCAProvincial Inspector Weights & Measures PIWMProduction PROD

Projects & Facilities Engineering Services P&TSSustainable Development & Health Safety and Environment SD & SD & HSE