ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday endorsed the implementation framework approved by Deputy PM Ishaq Dar’s 20-member task force on November 18, which allows Exploration and Production (E&P) companies to auction and sell 35% of gas from future wells to the private sector.
The Council of Common Interests (CCI) had given its nod to the amended E&P policy and mechanism on January 26, 2024. The framework is now set to be presented to the Executive Committee of the National Economic Council (Ecnec) on Monday for final approval, a step required to facilitate $5 billion in investment by E&P companies in the oil and gas sector.
A meeting chaired by PM Shehbaz Sharif to discuss oil and gas issues became contentious, with Petroleum Minister Musadik Malik and senior officials from the Petroleum Division clashing over key matters. The debate included disagreements on a gas trading agreement between SOCAR (Azerbaijan) and PSO, as well as operational concerns involving Jamshoro Joint Venture Limited (JJVL) and Sui Southern Gas Company (SSGC).
The prime minister expressed displeasure over the apparent discord, emphasizing the need for better cooperation. Senior officials defended their actions, stating they had adhered to policies and kept the minister informed.
Minister Musadik Malik later stated that the Additional Secretary (Policy) was removed by the PM’s Office due to an administrative audit, describing it as routine performance management. However, tensions persisted over issues such as delays in advancing a government-to-government energy agreement with Azerbaijan and operationalizing the JJVL LPG plant.
While officials presented records showing Azeri satisfaction with recent meetings, a letter from the Azerbaijan government reportedly contradicted these claims. On the JJVL matter, officials maintained that no policies were breached, as discussions involved a commercial dispute between JJVL and SSGC.
Despite the friction, Ecnec’s approval of the gas sale mechanism is seen as crucial for attracting investment and enhancing Pakistan’s energy sector efficiency.
Story by Khalid Mustafa
