Says petroleum rights holders should disclose modifications in shareholding, capital issuance
ISLAMABAD:
Over six months have handed since show-cause notices have been issued to Spud Vitality Restricted (SEPL) and Frontier Holdings Restricted (FHL) over alleged modifications in possession and efficient management with out prior authorities approval, but no seen enforcement motion has adopted.
The Petroleum Division’s inaction has raised critical questions on regulatory oversight in Pakistan’s upstream vitality sector, notably in instances involving modifications answerable for petroleum rights holders.
The matter stems from a transaction through which Phoenix Exploration bought its 73.3% stake in Jura Vitality to IDL Investments Restricted, a British Virgin Islandsregistered agency, on March 6, 2025.
The Directorate Basic of Petroleum Concessions (DGPC), working below the Ministry of Vitality (Petroleum Division), issued a show-cause discover on July 18, 2025, stating that the transaction was neither disclosed nor permitted earlier than execution, as required below petroleum guidelines.
Based on the DGPC, it turned conscious of the transaction solely after receiving a third-party letter dated Could 2, 2025.
The discover warned that the sale could violate Rule 68(d) of the Pakistan Petroleum (Exploration and Manufacturing) Guidelines, 1986, and Rule 69(d) of the 2001 guidelines, each requiring prior authorities consent for modifications in shareholding or efficient management.
Underneath these guidelines, petroleum rights holders should disclose modifications in shareholding, capital issuance, board appointments, voting rights and company construction.
The DGPC directed SEPL, FHL and Jura Vitality to submit detailed documentation inside 30 days, together with shareholding buildings earlier than and after the transaction.
The businesses have been additionally requested to reveal board modifications, voting patterns, transaction values, tax filings and whether or not capital features or withholding taxes have been paid in Pakistan, with warnings of punitive motion, together with potential revocation of petroleum rights.
Trade sources say the scrutiny is linked to nationwide safety, as approval mechanisms intention to forestall possession by nationals of hostile international locations.
Regardless of reported admissions that approvals weren’t obtained, the DGPC has not invoked its powers below Rule 69(d).
