SIFC asks for update on amended E&P policy

ISLAMABAD: The Special Facilitation Investment Council (SFIC) has put the Petroleum Division on toes asking it to give updates on issues of amended E&P policy 2012, upgradation of refineries, tight gas and implementation of revised gas allocation priority order.

The updates would be tabled in the next meeting of Apex Committee of SIFC to be presided over by prime minister and attended by Chief of Army Staff.

“The prime minister has also asked Petroleum Minister to ensure decision on the issues, as the delay has impeded $5 billion investment in oil and gas sector and $5-6 billion in upgradation of refineries under brownfield policy,” senior officials of the Energy Ministry told The News.

“The decision is to be taken by the Finance Division on upgradation of refineries which is not being implemented because of introduction of Sales Tax exemption in the Finance Bill for FY24-25,” the officials said. The SIFC is concerned as indecisiveness by Petroleum and Finance Divisions has delayed initiation of $10-11 billion investment. The SIFC forum was made to facilitate investment in the country. However, no investment from local E&P companies and refineries has started despite approval of revenue policies. There are some issues on which the Petroleum Division has failed to show progress.

The SIFC Division on August 7 wrote a letter to Secretary Petroleum Division with a copy to Federal Minister for Petroleum. About seven months have elapsed since approval of altered E&P policy, 2012 by Council of Common Interests (CCI). Under this policy, 35 percent gas from future discoveries would be sold out to private sector companies by Exploration and Production companies on competitive bids. However, Petroleum Division prepared an implementation framework comprising 15 points which says 35 percent gas allocation from new discoveries will be implemented in seven years till 2030 in phases.