ISLAMABAD:
The Islamabad Excessive Courtroom (IHC) has directed the Petroleum Division and the Directorate Basic of Petroleum Concessions (DGPC) to right away proceed beneath legislation towards two exploration and manufacturing (E&P) firms over unauthorised change in efficient management. This violation could result in the revocation of petroleum rights.
Parliamentary Secretary for Vitality (Petroleum Division) Mian Khan Bugti knowledgeable the Nationwide Meeting on Thursday that the DGPC had launched regulatory proceedings towards three E&P firms over alleged violation of petroleum guidelines. In the course of the query hour, he mentioned the DGPC issued a show-cause discover on July 18, 2025 to Jura Vitality Company, Frontier Holdings and Spud Vitality. In a contemporary growth, the IHC issued a decisive order, directing the Ministry of Vitality (Petroleum Division) and the DGPC to take enforcement motion towards Frontier Holdings and Spud Vitality, following allegations of unauthorised switch of efficient company management in violation of Pakistan’s petroleum guidelines.
The courtroom order, issued in response to a writ petition, has successfully eliminated any room for regulatory delay by instructing the authorities to take the show-cause proceedings to authorized conclusion “expeditiously” and strictly in accordance with the legislation. The matter pertains to a transaction executed in early 2025, via which Jura Vitality allegedly transferred efficient management of its company group – comprising Frontier Holdings and Spud Vitality – to IDL Investments by way of an offshore association, with out acquiring prior approval from the federal government of Pakistan.
Underneath Pakistan’s petroleum regulatory framework, any disposition of share capital or possession association resulting in a change in efficient management – whether or not instantly on the working firm stage or not directly via mother or father firms – requires prior authorities consent. On this case, such consent was by no means sought. Following complaints and regulatory correspondence, the DGPC issued a show-cause discover dated July 18, 2025 beneath Guidelines 68(d) and 69(d), which empower the federal government to revoke petroleum rights in circumstances of non-compliance, together with unauthorised modifications in possession or management.
Nevertheless, regardless of the discover, the enforcement motion reportedly stalled, elevating questions over regulatory hesitation in a strategically delicate sector. This delay compelled the matter into litigation, prompting petitioners to hunt intervention from the IHC to compel the state to behave. Throughout courtroom proceedings, the DGPC submitted a reply that proved central to the case, because it didn’t dispute the authorized breach. As an alternative, the regulator reaffirmed that petroleum proper holders have been beneath a strict statutory and contractual obligation to adjust to the Petroleum Exploration & Manufacturing Coverage 2012 and related petroleum guidelines. The DGPC acknowledged in its submission that any switch or change in possession or management may solely be undertaken with prior approval of the federal government, appearing via the DGPC, emphasising that the safeguard exists to guard Pakistan’s sovereign, fiscal and regulatory pursuits. Extra importantly, the DGPC acknowledged that breach of the obligatory requirement could render the petroleum proper liable to motion beneath the foundations.
