The Khyber Pakhtunkhwa government has expressed serious concern over the reported gas sale from the TAL Block Razgir-I exploratory well to a third party. Officials said such arrangements appear to violate the approved framework and the Council of Common Interests (CCI) decision.
In a letter to the Petroleum Division, the KP Energy and Power Department pointed out that Section 3(II) of the framework clearly applies to unallocated gas from existing leases under the Petroleum Rules of 1986, 2001, 2009 and 2013. The letter noted that the gas sale must strictly follow this framework.
The TAL Block partners had announced a gas condensate discovery at Razgir-I in August 2024. According to KP officials, any gas sale from this well should have been regulated under the Petroleum Policy 2012 and the CCI’s 2024 decision. However, reports suggest the process deviated from both.
The provincial government also highlighted that it received the third-party gas sale framework from the Petroleum Division with a delay of more than three months. Officials said there was no opportunity to review the policy before it was presented to the Executive Committee of the National Economic Council (ECNEC).
KP authorities stressed that decisions on gas allocation and priority have so far been made by the federal government, despite constitutional provisions that support the rights of producing provinces. They called for a mechanism to ensure that the needs of local consumers are met first.
The letter further demanded that producers clear all financial obligations to both federal and provincial governments before any gas sale to third parties. It also urged strict monitoring, including installation of metering facilities and oversight by provincial representatives.
The KP government warned that bypassing the agreed framework could harm provincial interests and reduce transparency in future deals. Officials called for stakeholder input to be considered before entering into any commercial transactions.
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