ISLAMABAD: The Prime Minister’s Office has directed the Petroleum Division to submit a comprehensive report on alleged violations of the Pakistan Petroleum Rules, 2001, by Frontier Holdings Limited (FHL) and SPUD Energy Pty Limited, specifically regarding the unauthorized transfer of controlling shares.
According to official documents, the PM Office issued a letter to the Secretary of the Petroleum Division on May 5, 2025, titled “Urgent Action Required – Violation of Petroleum Rules by Frontier Holdings Limited (FHL) and SPUD Energy PTY Limited.” The directive was prompted by a complaint received by the PM Office dated April 25, 2025.
The matter revolves around SPUD and FHL—two petroleum exploration companies linked to Jura Energy Corporation—which recently saw a shift in controlling ownership from Phoenix Holdings Ltd to IDL Investments Ltd. The transfer reportedly occurred without notification to or approval from the Petroleum Division, in apparent violation of regulatory requirements.
Transparency International Pakistan (TIP) has also raised alarm over the transaction. In a formal letter dated May 2, 2025, TIP urged the Prime Minister’s Office to investigate the matter, citing a potential breach of Rule 69(d) of the Pakistan Petroleum (Exploration and Production) Rules, 2001. The rule explicitly states: “Without the prior consent of the Government, there shall be no disposition of the share capital of the holder or its parent company in consequence of which any person who, prior to that disposition, had effective control of the holder or its parent company ceases to have such effective control.”
Following the Prime Minister’s intervention, the Director General Petroleum Concessions (DGPC) also took notice of the same complaint on May 14, 2025. The DGPC directed the CEO of FHL to submit a detailed report within three days, in accordance with the applicable rules. As of the filing of this report, the CEO of FHL has not provided an official comment.
This is not the first time these companies have come under regulatory scrutiny. In 2023, Prime Minister Shehbaz Sharif ordered the recovery of Rs1.13 billion in unpaid royalties from SPUD and FHL. The dues had accumulated from natural gas and crude oil sales from the Reti Maru, Badin IV South Block, and Zarghun fields. The Petroleum Division subsequently instructed Sui Southern Gas Company Limited (SSGC) to withhold payments to the firms until the royalties were paid to the national treasury. The companies later cleared the outstanding dues.
TIP has warned that the alleged recent share transfer, if left unchecked, could undermine regulatory authority, set a dangerous precedent, and compromise Pakistan’s energy sovereignty.
