Industry concerned over energy policies

Fears tussle between bureaucracy, ministry may prolong energy crisis

ISLAMABAD:

A tussle between the bureaucracy and the petroleum minister has brought work to a halt at the Petroleum Division, which is feared to impact the application of several energy policies.

Sources said that the alleged aggressive attitude of Petroleum Minister Musadik Malik had raised serious concern in the Petroleum Division.

In a recent development, the newly appointed Director General of Petroleum Concessions, Riaz Ali, was admitted to the Critical Care Unit (CCU) last week just days after assuming his new role at the ministry.

Allegations have surfaced regarding the high-pressure work environment at the petroleum ministry since the appointment of Musadiq Malik.

According to sources, the minister's behaviour in meetings has been particularly distressing as reports indicate that he frequently resorts to shouting and aggressive displays.

Malik has also been criticised for erratic schedules of meetings and making officials to wait for extended periods. This has reportedly led to frustration and demoralisation among the ministry staff, who feel that the minister prefers media appearances over addressing the nation's energy crisis.

When asked during a media briefing on Wednesday, Musadik Malik denied the allegations, saying that the director general of petroleum concessions was a gentleman, who was working on digitilisation of the oil and gas exploration sector.

However, he admitted that the health of the DG had deteriorated a little bit.

Meanwhile, efforts of the previous caretaker government, which were supported by the Special Investment Facilitation Council (SIFC) as well as industry stakeholders, to amend the Petroleum Policy 2012 including the 35% third-party gas sale provision, and revise the Tight Gas Policy were at risk.

The minister's insistence on revisiting different frameworks, redefining the terms of reference and hiring consultants has stalled progress, leading to growing uncertainty within the energy sector.

Over the past seven months, industry players said, there had been little progress on the critical energy policies. Instead, the ministry has witnessed a demoralised workforce, investors have been discouraged, circular debt has escalated and a growing number of companies are considering pulling out of the country.

Exploration and production (E&P) companies are hesitant to commit further investment, citing the uncertainty surrounding the recent petroleum policy changes. The situation underscores the challenges faced by Pakistan's energy sector at a time when strategic leadership and a clear policy direction are critically needed.

When asked by journalists about the proposal of 35% allocation of discovered gas to third parties by the exploration companies, the petroleum minister said that his personal point of view was that there had been depletion of indigenous gas reserves.

He said that the public gas utilities – Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) – had also raised the matter of depleting deposits at different fields.

The minister emphasised that if the exploration and production companies pressed ahead with a proposed plan, liquefied natural gas (LNG) would be blended with the indigenous gas but it would result in an increase in gas prices for the consumers. However, "this issue will be resolved soon," he added.