REPORT ON
PAYMENTS TO
GOVERNMENTS
FOR THE YEAR
ENDED JUNE 30,
2025

INTRODUCTION

Oil and Gas Development Company Limited (OGDCL) has prepared the following report on payments to governments ('Report') for the year ended June 30, 2025 in accordance with the Reports on Payments to Governments Regulations 2014 (2014/3209), as amended by the Reports on Payments to Governments (Amendment) Regulations 2015 (2015/1928), (the 'Regulations'). The Report also addresses OGDCL reporting obligations under DTR 4.3A of the Financial Conduct Authority Disclosure Guidance and Transparency Rules. The 'Basis of Preparation' section below contains information about the content of the Report, the types of payments included and the principles that have been applied in preparing the Report.

BASIS FOR PREPARATION

Activities

Payments made by OGDCL to governments arising from activities involving the exploration, prospection, discovery, development, and extraction of minerals, oil and natural gas deposits (extractive) activities are disclosed in this Report.

Government

The term "government" refers to any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a government.

Project

Payments are reported at project level except that payments that are not attributable to a specific project are reported at entity level. Project is defined as operational activities which are governed by a single contract, license, lease, concession or similar legal agreement, and form the basis for payment of liabilities with a government.

Payments

The information is reported under the following payment types:

Production entitlements

Under Production - sharing agreements (PSAs), the production is shared between the government and other parties to the PSA. For the year ended June 30, 2025, there were no reportable production entitlement payments to a government.

Taxes

These are taxes paid by OGDCL on its income, profits or production. Payments are reported net of refunds. Consumption taxes, personal income taxes, sales taxes, Gas Infrastructure Development Cess, Petroleum Levy, Federal Excise Duty, procurements (Contractors withholding taxes), withholding tax on dividend and interest income received by OGDCL, withholding property taxes, custom duties and related penalties are excluded.

Royalties

These are payments for the rights to extract oil and gas resources, typically at set percentage of revenue less any deductions that may be taken. Any adjustment related to prior year are reported as negative amounts in the Report.

Dividends

These are dividend payments other than dividends paid to a government as an ordinary shareholder of an entity unless paid in lieu of production entitlements or royalties. For the year ended June 30, 2025, there were no reportable dividend payments to a government.

Bonuses

These are payments for Bonuses. These are usually paid upon signing an agreement or a contract, or when a commercial discovery is declared, or production has commenced or reached a milestone.

License fees, rental fees, entry fees and other considerations for licenses and/or concessions

In preparing this report OGDCL has included license fees, rental fees and all other payments that are paid in consideration for new and existing license and / or concessions. Fees paid to Governments for administration services are excluded. Payments made in return for services provided by a government are also excluded.

Infrastructure improvements

Payments related to infrastructure improvements, for example building of roads, school or hospital etc. including contribution made in respect of social welfare obligation under licenses and / or concessions are included. Payments which are of social investment in nature other than infrastructure improvements (i.e. scholarships or donations etc. for education and health etc.) & contribution made to OGDCL CSR Trust are excluded.

Operatorship

When OGDCL makes a payment directly to a government arising from a project, regardless of whether OGDCL is the operator or not, the full amount paid is disclosed even where OGDCL is proportionally reimbursed by its operating/non-operating venture partners through a partner billing process (cash-call).

Cash and in-kind payments

Payments are reported on cash basis. Refunds are also reported in the period they are received by OGDCL and are shown as negative amounts in the Report. For the year ended June 30, 2025, there were no reportable in-kind payments to the government.

Materiality Level

The Regulations require that payments made as a single payment exceeding £86,000 or as part of a series of related payments within a financial year exceeding £86,000 be included in this Report. Payments below the above stated threshold are also included in this Report.

Currency

All payments have been reported in Pakistani Rupees (PKR).

General

The Payments shown in this report are rounded to the nearest thousand (PKR).