IHC orders action under law as DGPC pursues show-cause process against Jura Energy, Frontier Holdings, Spud Energy over change of control

ISLAMABAD (NEWS DESK): The Directorate General of Petroleum Concessions has issued show-cause notices to Jura Energy Corporation, Frontier Holdings Limited and Spud Energy Pty Limited over alleged violations of petroleum rules linked to shareholding disposition and change of effective control, the National Assembly was informed on Thursday.

Parliamentary Secretary for Energy (Petroleum Division) told the House the notices were issued on July 18, 2025 under Rule 68(d) and Rule 71(c) of Pakistan Petroleum (Exploration and Production) Rules, 1986, read with Rule 69(d) and Rule 52(f) of the 2001 rules. He said the show-cause process is a mandatory step before any revocation or suspension of licences can be considered.

The show-cause notice states Spud Energy and Frontier Holdings hold petroleum rights as working interest owners in multiple Petroleum Concession Agreements with the government. It also refers to a DGPC NOC dated May 16, 2012 for change in management and control of Frontier Holdings from Jura Energy Corporation (Canada) to Eastern Petroleum Limited (Mauritius) for specified blocks and licences under the 1986 and 2001 rules.

According to the notice, Jura Energy Corporation reported that its controlling shareholder, Phoenix Exploration, disposed of its 73.3% controlling share capital in Jura to IDL Investments Limited, a British Virgin Islands-based entity, a prior government consent was not sought or intimated. The notice says DGPC learned about these events through a third-party letter dated May 2, 2025, and it cites reporting obligations in Rule 71(c) of the 1986 rules and Rule 52(f) of the 2001 rules on capital and constitutional changes.

DGPC asked the companies to submit written explanations with documentary evidence within 30 days and to provide, among other items, shareholding structures before and after the transaction, any board nominations by IDL, whether voting orere exercised affecting operations, and whether disclosures were made to Pakistani authorities including FBR, SBP and SECP. It also sought transaction value details, tax treatment including any capital gains or withholding tax, copies of shareholder agreements and governance documents, and an explanation of how the transaction differs from the 2012 change-of-control case referenced in the notice.

The notice warns that failure to respond within the prescribed period or to provide the requested information may lead to action under the rules, including possible revocation of petroleum rights, and offers the option of a personal hear the National Assembly was told the matter had remained pending before the Islamabad High Court for about six months and that on February 6, 2026, the court disposed of the case, directing authorities to proceed in accordance otice and law after giving the parties a reasonable hearing.