Oil and gas exploration and production (E&P) companies are reportedly postponing the allocation of gas from new discoveries to third-party buyers, a move critics say benefits certain parties without valid licences, The Express Tribune reported.Â
The Council of Common Interests (CCI) approved in January 2025 criteria for gas allocation, requiring third-party buyers to hold a licence issued by the Oil and Gas Regulatory Authority (Ogra).Â
Sources say some private entities lobbied government circles despite lacking the necessary licence and are now pressuring E&P firms to bypass this requirement for bidding purposes.
The report cited a meeting held on July 18, 2025, at an E&P company’s office, rather than at Ogra’s premises, to discuss licensing challenges. The discussions focused on parties seeking a shipper’s licence to participate in gas bids. As per the report, some participants misinterpreted the framework, claiming that third-party buyers did not require a licence for prequalification, only for executing a Gas Sale and Purchase Agreement (GSPA).
Attendees agreed that licensing is required at the stage of GSPA execution, but not as a prequalification criterion. They also emphasized that all bids must be evaluated equitably, without giving preference to existing licence holders. An initial GSPA between buyer and seller would suffice as evidence for securing gas volumes for licensing purposes.
Under the policy, exploration firms can allocate up to 35%, raising from 10%, of gas from new discoveries to private-sector buyers. However, no company has yet implemented this provision. Industry officials warned that allowing unlicensed participation could violate CCI regulations and shift oversight responsibilities to post-bidding stages, potentially increasing costs and administrative workload.
Sources warned that some exploration companies could exploit ambiguities in the framework to delay the government’s policy of opening the gas market to private-sector participation.
