Chief executive Shahrukh Khan said: "The extension of the 20% IRR (in US$ terms) demonstrates the commitment of the Government of Sindh to the development of Thar coal.
"This is an attractive rate of return, designed to encourage foreign inward investment for the development of Thar.
"Oracle is committed to this project which will help to alleviate the country's power shortfall."
It means a project developing the Thar resource will be guaranteed a 20% internal rate of return on the investment in US dollars.
The extension applies to all coal mining projects, based on indigenous Thar coal, to the companies which achieve financial close before the end of 2016, which Oracle is working towards.
The government is keen to attract more investors in indigenous Thar coal based power projects to overcome the acute power shortage in the country.
Shares in Oracle eased 0.97% to stand at 2.55p.