Petroleum Division Delays Action on Energy Deal
Six months after issuing show-cause notices, Pakistan’s Petroleum Division Delays Action on Energy Deal has yet to take enforcement action against energy companies accused of unauthorised changes in ownership and management control, despite their classification as part of a strategic national industry.
Unapproved Ownership Transfer
The issue traces back to March 6, 2025, when Phoenix Exploration sold a 73.3% stake in Jura Energy to IDL Investments Limited, a British Virgin Islands–registered firm, without obtaining prior regulatory approval as required under Pakistan’s petroleum rules.
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Regulatory Notice and Requirement
On 18 July 2025 Director General Petroleum Concession (DGPC) issue show cause notice to Spud Energy Limited, Frontier Holdings Limited and Jura Energy and the companies were directed to submit detailed disclosures within 30 days including shareholding structures, board changes, transaction values and tax compliance details.
Admission but No Enforcement
Both companies acknowledge that the transaction occurred without approval . However the DGPC has not invoked Rule 69(d) which allow suspension and revocation of petroleum rights in cases of unauthorized transfer of control.
Islamabad High Court Intervention
On 16 October 2025 Islamabad High Court order status quo restraining all parties from altering the shareholding or control structure of Frontier Holding and Spud Energy while the case remain under consideration.
Silence from Authorities
Despite repeat inquiries the Petroleum Division has not clarify why enforcement action has been delayed or how it is ensuring compliance with petroleum regulation and court directives.
Conclusion
The prolonged inaction by the Petroleum Division Delays Action on Energy Deal over allegedly illegal energy deal raise serious concern about regulatory enforcement, transparency and national security oversight in Pakistan’s oil and gas sector. With court orders in place and admitted violations on record, timely and decisive action is critical to uphold petroleum law and maintain investor confidence in the country energy industry.