Senators annoyed at depriving provinces of petroleum concessions

ISLAMABAD: There was resentment in the Senate on Wednesday over what was described as a mysterious move under a proposed piece of legislation to deprive the provinces of right to develop upstream petroleum concessions sector in violation of the Constitution.

Several senators, particularly from the smaller provinces gave vent to their anger over the move and said how could there be no deprivation and voice of dissent in the provinces, if they would continue to be deprived of what the Constitution, under the 18th amendment gave to them. PkMAP senators, whose party is in alliance with the government, vowed to resist such move and alleged this was like a day-light robbery on the rights of the provinces.

Prime Minister Shahid Khaqan Abbasi came under fire for this initiative by some senators, as one Senator Usman Kakar of PkMAP even blamed Prime Minister Shahid Khaqan Abbasi for this, when he was minister for petroleum.

An absorbing discussion was held on the admitted motion, moved by PPP’s Senators Mukhtiar Ahmad Dhamra and Sassui Palijo about the government’s recent move to delink petroleum and gas authority from provincial oversight, being not only a direction violation of the Constitution, but would also create trust deficit between the Centre and the provinces.

At the end, after listening to State Minister for Petroleum Jam Kamal, Chairman Senate Mian Raza Rabbani asked his ministry to submit to his office the details of how much was the World Bank’s involvement in the matter and to what level and the reference prepared by the House Devolution Committee should also be presented in his chamber along with any additional information plus the draft bill on upstream petroleum concessions.

Rabbani announced to spell out his ruling on the matter during the on-going session after going through these documents. He repeatedly asked about one Rashid Sultan, as to what business he had with regards to the whole exercise.

PPP Senator Farhatullah Babar raised the issue of the proposed bill and wondered was not it a move to deprive the provinces of their rights to develop upstream petroleum sector by awarding petroleum concessions and vest the federal petroleum ministry with this right in violation of the Article 172 (3) and other articles in the Constitution introduced under the 18th Amendment. And this is being done under the advice of the World Bank.

He said that a bill: Pakistan Petroleum Exploration and Production Regulatory Authority Act 2107; had already been drawn up to set up an authority to grant and monitor all petroleum concessions and other upstream activities throughout the country and read out excerpts from the bill also.

Later, the Minister of State Jam Kamal winding up the discussion acknowledged that a draft of the legislation indeed had been drawn up and feedback of the provinces sought as well. However, he insisted that nothing had been finalised and all the provinces would be taken on board and the bill be given final shape after nod from the Council of Common Interests.

Babar also pointed out that the federal government had neither awarded concession to exploration companies nor allowed provinces to award such concession during the last five years ever since the Petroleum Policy 2012 had been in operation and asked why?

He wondered, “is it because that some powerful lobbies and vested interests are deliberately withholding development of petroleum sector to allow for imports of LNG and other petroleum products, he asked and demanded that the matter be thoroughly investigated? Babar emphasised media reports that the World Bank was behind the move, should also be investigated.

Rabbani strongly objected to the World Bank’s involvement in the proposed legislation and said asked, “are not we bartering away our sovereignty to financial imperialism. I take very strong exception to this. How can they tell us what to do regarding our own oil and gas resources? Why are they assisting us in framing of a law”? He asked for sending a notice to Rashid Sultan and insisted how they could take us for a ride.

Senators including PPP’s Taj Haider, Dr. Jehanzeb Jamaldini of BNP-Mengal, Shahi Syed of ANP, Kenneth Williams of PTI, Azam Musakhail and others said that they would not compromise on their provinces’ constitutional rights and referred to Saindak project, which was being exploited by China without giving due share to Balochistan.

Speaking on a matter of public importance, Senator Babar said that he felt certain invisible forces were having influence on the Parliament and referred to the Fata reforms bill, which hit snags after due deliberations, then mysteriously, the delimitation bill faced same fate with senators were never found in required numbers in the House for its passage and the bill on across-the-board accountability also hit snags.

PML-N Senator Javed Abbasi asked Babar to keep quiet, as the government would be doing what it could with regards to Fata reforms and advised him to beware of losing his membership of the Senate, as he had already lost membership of two committees.