The Israel Land Development Company Ltd.

Environmental & Social Information • Dec 29, 2022

REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEAR ENDED JUNE 30, 2022

INTRODUCTION

Oil and Gas Development Company Limited (OGDCL) has prepared the following report on payments to governments ('Report') for the year ended June 30, 2022 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 underthe 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, 2022, 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 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, 2022, 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. For the year ended June 30, 2022, there were no reportable bonus payments to ^a government.

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 I 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, 2022, there were no reportable in-kind payments to ^a 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).

The table below shows the relevant payments to government made by OGDCL for the year ended June 30, 2022 shown by country and department type.

Of the seven payment types required by the regulations, OGDCL did not pay any relevant production entitlements, dividends and bonuses and therefore these categories are not shown.

Country and name of departments	Taxes PKR '000	Royalties PKR '000	Fees PKR '000	Infrastructure Improvements PKR '000	Total PKR '000
Pakistan
of Board Federal Revenue (FBR)	69,500,261				69,500,261
Authority Oil and Gas Regulatory (OGRA)			9,600		9,600
Directorate General Petroleum Concessions (DGPC)		25,065,448	584,398	502,300	26,152,146
Total	69,500,261	25,065,448	593,998	502,300	95,662,007

Project wise details are included in the annexure to this report

GM Accounts Manager Accounts

of Name Project	Taxes PKR '000	Royalties PKR '000	Fees PKR '000	Infrastructure Improvements PKR '000	Total PKR '000
office Head Islamabad OGDCL	69,500,261	-	500	-	69,500,761
Kunnar	-	1,345,349	27	-	1,345,376
Paskhi	-	1,893,759	-	-	1,893,759
North Paskhi	-	320,461	-	-	320,461
Kunnar Deep	-	1,985,118	200	-	1,985,318
Bobi	-	257,339	250	-	257,589
Dhamrakhi	-	-	50	-	50
TandoAlam	-	1,419	30	-	1,449
Thora	-	87,502	6	-	87,508
Thora East	-	-	6	-	6
Palli	-	125,531	128	-	125,659
Lashari Center	-	80,427	112,805		193,232
Lashari South				-
Palli Deep	-	- 57	90	-	90
Jandran - Lease	-		-	-	57
Sari/Sari Sung - Lease	-	-	-	1,887	1,887
Sari Hundi	-	-	40	-	40
Hundi	-	5,516	200	-	5,716
Misan	-	-	282	-	282
	-	128	-	-	128
Daru	-	29,379	39,964	-	69,343
Sono	-	266,850	351,588	-	618,438
Buzdar	-	-	103	-	103
Baghla	-	-	232	-	232
Uch	-	545,273	945	-	546,218
Uch-II	-	361,843	200	-	362,043
Pirkoh - Lease	-	-	52	-	52
Pirkoh	-	-	1,240	-	1,240
Loti	-	-	200	-	200
Nandpur	-	-	352	-	352
Dhodak	-	14,111	935	-	15,046
Fimkassar	-	62,204	262	-	62,466
Kai	-	85,075	328	-	85,403
BhalSyedan	-	3,821	-	-	3,821
Sadqal	-	14,104	409	-	14,513
Fatehjang	-	-	6,190	9,461	15,651
Missakeswal	-	45,532	40	-	45,572
Rajian	-	591,723	305	-	592,028
Toot	-	89,647	66	-	89,713
Dakhni	-	356,686	200	-	356,886
Sammandar - Lease	-	-	2,027	5,661	7,688
Thal - Lease	-	-	1,923	7,076	8,999
Thal	-	86,122	-	-	86,122
Thal East	-	-	304	-	304
Thal West	-	-	319	-	319
Bhambhra			394		394
( Block-3371-8) Soghri	-	-		- 9,435	9,435
	-	-	-
Soghri ( Block3270-6)-Lease	-	306,654	950	-	307,604 8,034
Wali	-	-	-	8,034
Shakarganj West-Lease	-	-	1,983	2,572	4,555
Mari East - Lease	-	-	1,559	5,661	7,220
North-Lea Khuzdar se	-	-	3,922	10,097	14,019
Kharan-3 - Lease	-	-	3,326	8,998	12,324
Bostan-Lease Zhob-Lea	-	-	2,338	7,088	9,426
se	-	-	3,958	10,097	14,055
Cholistan-Lease	-	-	1,983	459	2,442

of Project Name	Taxes PKR '000	Royalties PKR '000	Fees PKR '000	Infrastructure Improvements PKR '000	Total PKR '000
Jandaran West - Lease	-	-	608	5,661	6,269
Ali Pur-Lease	-	-	1,745	-	1,745
Jhelum-Lease	-	-	1,220	2,160	3,380
Lilla-Lease	-	-	1,889	9,175	11,064
Sujawal South-Lease	-	-	1,531	9,175	10,706
Khewari East-Lease	-	-	1,161	7,801	8,962
Vehari-Lease	-	-	1,990	7,801	9,791
Sutlej-Lease	-	-	1,850	7,760	9,610
Hazro-Lease	-	-	523	7,158	7,681
Nowshera-Lease	-	-	1,369	309	1,678
Qadirpur	-	60,055	3,240	-	63,295
Tando Allah Yar - Lease	-	-	-	133,703	133,703
Tando Allah Yar	-	307,206	200	-	307,406
Tando Allah Yar South West	-	54,714	212	-	54,926
Oars	-	-	200	-	200
Oars West	-	271,298	241	-	271,539
Unhar	-	53,819	215	-	54,034
Chandio	-	147	263	-	410
Pasakhi East -1 (Ta. all. yar)	-	22,088	200	-	22,288
Kunnar South - 1 (Ta.all.yar)	-	71,611	308	-	71,919
Shah	-	59,197	219	-	59,416
Tando Allah Yar North	-	-	200	-	200
Oars Deep	-	30,761	358	-	31,119
Sial	-	60,632	-	-	60,632
Chak Naurang	-	115,996	70	-	116,066
Hala - Lease	-	-	-	3,774	3,774
Jakhro	-	4,402	474	-	4,876
Zin Lease (Block 2868-1)	-	-	-	1,402	1,402
i sm - Lease Bitr	-	-	7,144	16,209	23,353
Bitrisim West	-	392,815	255	-	393,070
Gundanwari	-	-	72	-	72
Pandhi	-	1,356	100	-	1,456
Chanda	-	1,508,072	200	20,757	1,529,029
Chak 63	-	-	573	-	573
Chak 66	-	-	100	-	100
Chak2	-	-	681	-	681
Hakim Oahu	-	-	383	-	383
Chak 7A	-	-	48	-	48
Lala Jamali	-	-	306	-	306
Sinjhoro	-	466,797	-	-	466,797
Lease (Block 3371-5) Gurgalot	-	-	-	1,692	1,692
Nashpa Lease (Block 3370-10)	-	-	-	28,305	28,305
Mela	-	562,556	806	-	563,362
Nashpa	-	5,077,528	1,730	-	5,079,258
Khewari - Lease	-	-	-	4,494	4,494
Chabaro	-	162	171	-	333
Nim - Lease	-	-	-	11,989	11,989
Nim	-	3,018	17	-	3,035
Saand (Old Gulsher)	-	129,957	213	-	130,170
Chhutto	-	45,312	244	-	45,556
Mangrio	-	133,008	44	-	133,052
Kalchas (Block# 2969-7) Lease	-	-	-	1,396	1,396
Guddu Block 2869-9 Lease	-	-	-	7,076	7,076
Reti	-	-	67	-	67
Maru	-	-	172	-	172

of Project Name	Taxes PKR '000	Royalties PKR '000	Fees PKR '000	Infrastructure Improvements PKR '000	Total PKR '000
Maru-Reti	-	140,119	-	-	140,119
Kohat (Block 3371-10) Lease	-	-	-	28,305	28,305
Togh	-	384,218	452	-	384,670
Palantak-Lease	-	-	1,966	4,234	6,200
Rakhshan-Lease	-	-	984	2,807	3,791
Bela North-Lease	-	-	-	5,198	5,198
Orakzai-Lease	-	-	1,366	9,925	11,291
Baratai-Lease	-	-	29	9,435	9,464
Dhok Hussain	-	363,384	273	-	363,657
Tirah-Lease	-	-	1,557	9,634	11,191
Gawadar-Lease	-	-	-	9,634	9,634
Pezu-Lease	-	-	1,219	11,627	12,846
Pasni West-Lease	-	-	1,835	7,724	9,559
Ranipur-Lease	-	-	2,855	8,468	11,323
South-Lease Khuzdar	-	-	-	2,637	2,637
Suleiman-Lease	-	-	1,738	9,175	10,913
Killa Saifullah-Lease	-	-	1,938	9,174	11,112
Zorgarh-Lease	-	-	963	-	963
Buzdar South	-	75,490	-	-	75,490
Jabo	-	19,550	-	-	19,550
Meyun Ismail	-	7,998	-	-	7,998
Paniro	-	6,231	-	-	6,231
(Well) old Zaur - 705000	-	66,462	-	-	66,462
Jagir	-	3,674	-	-	3,674
Muban	-	16,990	-	-	16,990
Dhurnal	-	12,813	-	-	12,813
Adhi	-	358,056	-	-	358,056
Adhi Sakesar	-	1,467,279	-	-	1,467,279
Bhangali	-	1,197	-	-	1,197
Kadanwari	-	98,914	-	-	98,914
Makori Deep (Tai Block 3370-3)	-	8,857	-	-	8,857
Makori East	-	1,936,259	-	-	1,936,259
Mardan Khel	-	12,267	-	-	12,267
Manzalai	-	1,287,996	-	-	1,287,996
Marni Khel	-	470	-	-	470
Maramzai	-	47,020	-	-	47,020
Tolanj	-	2,058	-	-	2,058
it Bh	-	4,821	-	-	4,821
Ratana	-	8,013	-	-	8,013
i d Pin or	-	212,985	-	-	212,985
Miano	-	128,190	-	-	128,190

Total

GM Accounts

69,500,261 25,065,448 593,998 502,300 95,662,007

Manager Accounts