KARACHI: Sindh Chief Minister Murad Ali Shah has called upon the federal government to not allow the sale of oil and gas extracted from Sindh without the provincial government’s consent.

Mr Shah said this while presiding over a meeting of the Sindh Energy Holding Company Ltd (SEHCL), a subsidiary com­pany of the energy department, on Saturday.

The CM also urged the federal government to include the province’s input in any framework allowing oil and gas exploration and production companies to sell 35 per cent of their stakes to private parties.

The framework should bind the sellers to prioritise the companies in Sindh for the transaction and any sale of gas outside the province shall be subject to the provincial government’s NOC.

The provincial government should be allowed to collect the windfall levy from the sale of gas from third party buyers directly through E&P companies. The producer shall seek approval from the Petroleum Division, federal government, and respective provincial governments for the sale of third-party gas.

The meeting was atte­nded by Energy Minister Nasir Hussain Shah, Sec­retary Musaddiq Ahmed Tahirkheli and SEHCL CEO Tufail Khosa.

CM Shah demanded that Sindh’s long outstanding demand for the sharing of actual data of well-head and production for actual valuation of the provincial share be fulfilled.

He added that the latest production statistics of oil and gas be regularly shared with Sindh and instructed the provincial energy department to effectively pursue the matter of windfall levy payments with the Centre. The energy minister told the CM that SEHCL currently holds working interests in multiple exploration blocks and has invested Rs1.92 billion in exploration since 2014.

“The company anticipates net earnings of Rs113 million in 2025-2026, with additional revenue potential from a recently discovered gas field in Shah Bandar,” he added.

The SEHCL currently holds a 2.5 per cent working interest in exploration blocks, which limits revenue potential.

The CM directed the energy department to up the working interest to 10-15pc in highly prospective blocks for a higher revenue share in future discoveries.

The chief minister approved the acquisition of Hidan Block, a designated oil and gas exploration area, located in Dadu, Kambar, and Shahdadkot districts of Sindh.

With an estimated gas reserve of 130-140 BCF, this block presents a lucrative investment opportunity, according to a statement issued by the CM House.

Published in Dawn, February 2nd, 2025