PMO Investigates FHL, SPUD Share Transfer Breach

Islamabad: The Prime Minister’s Office has issued a stern directive to the Petroleum Division, demanding a comprehensive report on alleged violations of the Pakistan Petroleum Rules, 2001, by Frontier Holdings Limited (FHL) and SPUD Energy Pty Limited. The focus is on the unauthorized transfer of controlling shares, a move that threatens regulatory integrity. Official documents reveal a letter dated May 5, 2025, titled “Urgent Action Required – Violation of Petroleum Rules by Frontier Holdings Limited (FHL) and SPUD Energy PTY Limited”, sent to the Secretary of the Petroleum Division, triggered by a complaint received on April 25, 2025.

The controversy centers on SPUD and FHL—petroleum exploration firms tied to Jura Energy Corporation—where controlling ownership shifted from Phoenix Holdings Ltd to IDL Investments Ltd without notification or approval from the Petroleum Division, seemingly breaching regulatory mandates. Transparency International Pakistan (TIP) has sounded the alarm, urging the Prime Minister’s Office in a letter dated May 2, 2025, to probe this potential breach of Rule 69(d), which mandates prior government consent for such share disposals to prevent loss of effective control.

Following the Prime Minister’s intervention, the Director General Petroleum Concessions (DGPC) took action on May 14, 2025, ordering the CEO of FHL to submit a detailed report within three days, though no official response has emerged as of this report. This isn’t the first scandal—Prime Minister Shehbaz Sharif in 2023 mandated the recovery of Rs1.13 billion in unpaid royalties from SPUD and FHL for sales from the Reti Maru, Badin IV South Block, and Zarghun fields. The Petroleum Division directed Sui Southern Gas Company Limited (SSGC) to withhold payments until the dues were settled, which the companies later cleared.

TIP warns that unchecked share transfers could undermine regulatory authority, set a dangerous precedent, and jeopardize Pakistan’s energy sovereignty. Web context reveals ongoing scrutiny of energy sector governance, while posts found on X show mixed sentiment—some support the investigation, others question enforcement efficacy. Critically, the narrative of “regulatory action” may gloss over deeper systemic issues—web sources highlight past royalty disputes, and X sentiment suggests skepticism about government oversight, hinting at potential cover-ups or institutional weaknesses.