Differences on 18th amendment hinders oil, gas explorations

ISLAMABAD: The differences between the federation and provincial governments on the 18th amendment into the constitution have been creating hindrances in oil and gas exploration for the last six years, experts said on Tuesday.

Energy experts and lawyers, in a policy dialogue, said no new exploration licence has been issued since the 18th amendment six years ago.   Institute of Policy Studies hosted the session.

They urged the government to revisit the 18th amendment. The confusions related to its implementation are virtually halting the activities in the energy sector.

They said a number of foreign companies have left due to the lacunas and wrangling between the federation and provinces for legislative and executive controls.

Energy lawyer Muhammad Arif said there has been no change in the legislative and executive authority even after 18th amendment. The Regulation of Mines and Oilfields and Mineral Development Act of 1948 is still intact, he said.

Arif said ownership means sharing of royalty and does not confer the legislative and executive authority. A government official called for an effective and efficient institutional arrangement to the satisfaction of the provinces in this regard.

Hamid Hasan, ex-secretary water and power said the post-18th amendment issues are affecting the oil and gas sector and they are arising due to the misinterpretation or mismanagement, lack of homework and blurred vision of the concerned authorities.   Hasan called for an authority that can act as an interface between the federal government and the provinces to sort out bottlenecks and confusions.