Govt Likely to Resolve Issue of Petroleum Policy to Facilitate $5 Billion Investment

Deputy Prime Minister Ishaq Dar will preside over a meeting today on the long-delayed implementation of the amended Exploration and Production (E&P) Policy 2012. The meeting aims to align decisions with the Council of Common Interests (CCI) to implement the amended policy and facilitate a $5 billion investment in the sector. The policy allows E&P companies to sell 35 percent of gas from new wells to private companies through competitive bidding and reserve 65 percent for the Sui companies. Additional topics on the agenda include leasing LNG power plants, revising port charges for LNG imports, enhancing RLNG consumption, and updating gas tariff determination mechanisms to address the sector’s Rs. 2.7 trillion circular debt. Despite the CCI’s approval earlier this year, the implementation framework has yet to be submitted to the Executive Committee of the National Economic Council. The delay has badly hurt the liquidity crisis which now totals Rs. 1,500 billion for E&P companies like OGDC, PPL, and Mari Petroleum. The Petroleum Division has urged phased implementation through 2030, but E&P companies insist on immediate enforcement to stabilize operations and expand exploration. This is the fifth meeting of the 20-member task force on gas-related issues. The previous session was postponed due to the Petroleum Minister’s unavailability. Dar has reiterated that the CCI decision is final and must be implemented on high priority.