The Israel Land Development Company Ltd. — Regulatory Filings 2021

Nov 12, 2021

REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEAR ENDED JUNE 30, 2021

INTRODUCTION

Oil and Gas Development Company Limited (OGDCL) has prepared the following report on payments to governments ('Report') for the year ended June 30, 2021 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

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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, 2021, 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 and custom duties 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, 2021, 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 0 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

0 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, 2021, 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, ²⁰²¹ shown by country and department type.

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

Country and name of departments	Taxes PKR '000	Royalties PKR '000	Fees PKR '000	Bonus PKR '000	Infrastructure Improvements PKR '000	Total PKR '000
Pakistan
Federal Board of Revenue (FBR)	53,795,812					53,795,812
Oil and Gas Regulatory Authority (OGRA)			141,028			141,028
Directorate General Petroleum Concessions (DGPC)		17,147,986	561,128	98,549	220,311	18,027,974
Total	53,795,812	17,147,986	702,156	98,549	220,311	71,964,814

Project wise details are included in the annexure to this report

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Name of Project	Taxes PKR '000	Royalties PKR '000	Fees PKR '000	Bonus PKR '000	Infrastructure Improvements PKR '000	Total PKR '000
OGDCL Head office Islamabad	53,795,812	-	1,468	-	-	53,797,280
Kunnar Deep	-	2,801,244	1,869	-	-	2,803,113
Makori East	-	2,608,901	1,637	-	-	2,610,538
Adhi Sakesar	-	1,266,625	-	-	-	1,266,625
Kunnar	-	1,045,071	1,889	-	-	1,046,960
Chanda	-	844,226	3,851	-	-	848,077
Paskhi	-	831,805	-	-	-	831,805
Manzalai	-	793,901	-	-	-	793,901 626,095
Baratai	-	527,033	513	98,549 -	- -	564,558
Sono	-	217,169 389,180	347,389 -	-	-	389,180
Adhi	- -	374,980	1,987	-	-	376,967
Dhok Hussain	-	359,328	409	-	-	359,737
Uch	-	353,264	407	-	-	353,671
Uch-11	-	338,791	683	-	-	339,474
Sinihoro isi	-	282,476	56,400	-	-	338,876
m West Bitr	-	334,153	2,824	-	-	336,977
Dakhni	-	309,635	606	-	-	310,241
Soahri	-	273,118	2,027	-	-	275,145
Bobi Raiian	-	226,660	1,011	-	-	227,671
	-	220,258	1,468	-	-	221,726
Mela Toah	-	219,242	415	-	-	219,657
Paskhi North	-	204,850	-	-	-	204,850
Miano	-	199,677	-	-	-	199,677
Maramzai	-	184,157	-	-	-	184,157
Tando Alam	-	182,727	30	-	-	182,757
Maru-Reti	-	173,003	1,531	-	-	174,534
Lashari Center & South	-	63,092	109,105	-	-	172,197
Bhambhra	-	146,063	1,738	-	-	147,801
BhalSvedan	-	75,137	70,604	-	-	145,741
Kadanwari	-	91,157	-	-	-	91,157
Pindori	-	90,782	-	-	-	90,782
Mardan Khel	-	89,835	-	-	-	89,835
Loti	-	82,738	1,726	-	-	84,464
l Tando Allah Var	-	65,873	455	-	2,151	68,479 64,939
Kohat (B ock 3371-10)	-	31,816	200	-	32,923	64,603
Chak Naurana	-	58,774	5,829	-	- -	57,214
Sadhra	-	57,214	-	- -	-	56,023
Oars West	-	53,773	2,250	-	-	55,612
Kai	-	55,612	- 411	-	-	52,477
Toot	-	52,066	1,966	-	-	48,538
Fimkassar	-	46,572 26,086	232	-	20,618	46,937
Kalchas	-	45,792	-	-	-	45,792
Makori Deep (Tai Block 3370-3)	- -	41,267	717	-	-	41,984
Shah Dino		40,359	441	-	-	40,800
Thora Kunnar South - 1(Ta.all.yar	- -	35,222	1,835	-	-	37,057
)	-	35,289	394	-	-	35,683
Unnar	-	33,053	280	-	-	33,333
Hundi	-	15,129	72	-	15,049	30,250
Shahana-Lease Jang Fateh	-	13,812	280	-	13,282	27,374
	-	14,278	12,554	-	-	26,832
Daru Nashoa	-	-	1,387	-	23,195	24,582
Sadkal	-	20,330	800	-	-	21,130
Pasakhi East	-	19,098	1,220	-	-	20,318
Sadar	-	19,948	-	-	-	19,948
Dhodak	-	17,703	1,990	-	-	19,693
Zaur (Well) old - 705000	-	19,456	-	-	-	19,456
	-	18,095	-	s. -	-	18,095

Name of Project	Taxes PKR '000	Royalties PKR '000	Fees PKR '000	Bonus PKR '000	Infrastructure Improvements PKR '000	Total PKR '000
Nur	-	15,852	1,286	-	-	17,138
Zhob-Lease	-	8,279	-	-	8,692	16,971
Tolana West	-	16,488	-	-	-	16,488
Palantak-Lease	-	7,898	100	-	7,129	15,127
Jabo	-	13,019	-	-	-	13,019
Guddu Block 2869-9	-	6,663	262	-	5,973	12,898
Jandran - Lease	-	-	233	-	12,248	12,481
Dhurnal	-	9,258	1,006	-	-	10,264
Tando Allah Yar North	-	8,643	453	-	-	9,096
Missa Keswal	-	6,936	1,446	-	-	8,382 7,597
Ratana	-	7,597	-	-	-	7,535
Chandio	-	4,295	3,240	-	- 6,710	6,736
Ti rah-Lease	-	-	26	-	4,297	6,626
Kohlu ( Block # 2968-3)	-	2,317	12 1,998	-	-	6,373
Dhachapur	-	4,375		-	6,143	6,160
Zin Lease	-	-	17	-	-	6,141
Chutto	-	3,243	2,898	-	5,747	6,020
Gawadar-Lease	-	-	273 66	-	5,717	5,783
Samandar - Lease	-	-	359	- -	5,191	5,550
Bela North	-	- 2,594	50	-	2,455	5,099
Shaan - Lease	-		1,938	-	3,152	5,090
Jakhro	-	-	-	-	4,984	4,984
Mari East - Lease	-	-	200	-	4,728	4,928
Kulachi-Lease	-	- -	30	-	4,570	4,600
Shakr Gani West	-	-	-	-	4,590	4,590
Rani our-Lease	-	-	25	-	4,552	4,577
Wali <Block3270-6)	- -	-	447	-	4,079	4,526
Thal West	-	-	135	-	4,326	4,461
Lakhi Rud	-	-	3,989	-	-	3,989
Chak-66	-	-	3,982	-	-	3,982
Chak-63	-	-	3,935	-	-	3,935
Chak-7A Chabaro	-	-	3,923	-	-	3,923
Oars	-	-	2,733	-	-	2,733
Oars Deep	-	-	2,624	-	-	2,624
Latamber - Lease	-	-	128	-	2,036	2,164
Dhamrakhi	-	-	1,983	-	-	1,983
Hakeem Oahu	-	-	1,983	-	-	1,983
Lala Jamali	-	-	1,770	-	-	1,770
Pezu-Lease	-	-	71	-	1,589	1,660
Manario	-	-	1,557	-	-	1,557
Suiawal South	-	-	1,531	-	-	1,531
Cholistan-Lease	-	147	345	-	951	1,443
Nim	-	-	1,349	-	-	1,349
Qadimur	-	-	1,117	-	-	1,117
Bostan	-	-	-	-	1,023	1,023
Orakzai-Lease	-	-	112	-	897	1,008
South-Lease Khuzdar	-	-	-	-	908	908
Sakhi	-	678	-	-	-	678
Suleiman	-	162	463	-	-	625
Kharan-3	-	385	213	-	23	621
Chaman	-	497	-	-	-	497
Bhanaali	-	440	-	-	-	440
Pirkoh	-	425	-	-	-	425
Gudanwari	-	-	216	-	-	216
Saand	-	-	213	-	-	213
Killa Saifullah	-	-	-	• -	200	200
Khewari East	-	-	-	-	183	183

Project Name of	Taxes PKR '000	Royalties PKR '000	Fees PKR '000	Bonus PKR '000	Infrastructure Improvements PKR '000	Total PKR '000
	-	174	-	-	-	174
Paniro	-	168	-	-	-	168
Misan					-	102
Lilla	-	-	102	-
Pakhro	-	-	88	-	-	88
Pasni West	-	-	70	-	-	70
	-	-	70	-	-	70
Pali			48	-	-	48
Sara West	-	-
Sahu	-	12	-	-	-	12
Baloch	-	(9,454)	6,141	-	-	(3,313)

Total

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ED Finance

GM Accounts

53,795,812 17,147,986 702,156 98,549 220,311 71,964,814