ISLAMABAD: The Petroleum Division has retracted its proposal under the amended Exploration and Production (E&P) Policy 2012, which allowed exploration companies to allocate 35% of future gas discoveries to the private sector over seven years, concluding by 2030.
Instead, new guidelines require E&P companies to first recover depleted gas before selling 35% of additional output to the private sector. A benchmark pricing mechanism is also being developed to regulate private sector sales.
While the Petroleum Division supports deregulating the oil and gas sector, concerns remain over unfair competition for state gas companies. Meanwhile, Sui companies will continue receiving 65% of future discoveries without bidding. However, liquidity issues have hindered E&P activities due to outstanding dues.
Story by Khalid Mustafa
