Provincial representation in OGRA: Petroleum Division to find possibility despite opposition

ISLAMABAD: Despite the opposition from the Punjab government, the Federal Ministry for Law & Justice, Planning Division and Special Assistant to the PM on Petroleum, the Council of Common Interests (CCI) in its meeting on August 6, 2020 asked the Petroleum Division to identify the feasibility of provincial representation in the Oil and Gas Regulatory Authority (OGRA) in consultation with the provincial government.

During the last CCI meeting, Prime Minister Imran Khan said he strongly believed in provincial representation but it should not affect efficiency of the organisation. In August 6 CCI meeting, the Sindh government had pitched a proposal seeking an amendment in Section-3 of the OGRA Ordinance-2002 to incorporate provincial representation in the authority on the pattern of Nepra, which has the composition of five members, comprising one member from the federal government as chairman and four members from the provinces appointed by the federal government in consultation with the concerned provincial governments, while a vice chairman should be appointed amongst the members for a period of one year on rotation. The Sindh government had also proposed the appointments for the slots of chairman and provincial members for a period of four years. This all has been disclosed in the official documents acquired by The News. It also unfolded that the Petroleum Division would inform the next CCI meeting about the recent updates of the consultations with provincial governments over provincial representation in the regulatory body.

However, facing stiff opposition from the Law and Justice Department, Planning Division, SA to the PM on petroleum, the Sindh chief minister had also come up with another proposal asking for an advisory board in the OGRA, having provincial representation without voting power. As per the documents, in the CCI meeting, the government of Khyber Pakhtunkhwa and Balochistan had fully endorsed the proposal of the Sindh government suggesting provincial members’ appointments on the recommendations of the concerned provincial governments. However, the Cabinet Division, Justice Division and Petroleum Division did not agree to the proposal.

The SA to the PM on petroleum said the Petroleum Exploration and Petroleum Policy-2012 had already provided a mechanism for the provision of input of provinces in the regulation of the upstream oil and gas sector by creating the post of provincial directors in GDPC (Directorate General Petroleum Concession). The minister for planning, development and special initiative also endorsed both his fellow minister and SA to the PM on petroleum. He also argued that the provincial representation was a political consideration, while regulatory bodies should have technical experts only. The minister for power stated that OGRA being a technical body should include technical experts, said the documents.

The Balochistan chief minister had also proposed to set up a committee, which could sit with the provinces to work out modalities regarding provincial representation. The Punjab chief minister recommended that competent persons should be included as members in OGRA.