Oil regulator seeks answers to use of confidential documents

Pakistan's petroleum regulator has directed an oil and gas exploration company to clarify what it says is the misuse of confidential documents amid an ongoing ownership dispute and regulatory action linked to Spud Energy. According to a letter available with The Express Tribune, the Ministry of Energy (Petroleum Division), through the Directorate General of Petroleum Concessions (DGPC), has directed Frontier Holdings Limited (FHL) chief executive officer to clarify the company's position regarding the alleged unlawful procurement and use of inquiry reports in legal and international proceedings. Referring to a communication from Petroleum Exploration (Pvt) Ltd (PEL), the letter noted that FHL had relied on "alleged inquiry reports" in the ongoing writ petition No 2117 of 2023 before the Islamabad High Court (IHC) as well as in other forums. The DGPC categorically distanced himself from these documents, stating that the reports in question were never officially circulated or made public. The letter emphasised that such reports "were neither circulated by the DGPC nor made public and remained uncirculated and are to be treated as non-est ab initio and infructuous." Raising concerns over how the documents were obtained, the Petroleum Division formally asked FHL to respond within seven working days. The letter stated: "If FHL has procured these reports, it is hereby requested to clarify your position within seven working days regarding such unlawful and illegal procurement as well as their misuse and unlawful reliance before any forum." The development comes against the backdrop of an ongoing and complex dispute involving FHL and Spud Energy, particularly concerning ownership changes and control issues that have already drawn regulatory and legal scrutiny in recent months. The DGPC's intervention signals a tightening regulatory stance, particularly on matters involving document integrity and legal proceedings. FHL did not respond to The Express Tribune's request for comments. The latest development is also tied to a broader legal battle over corporate control involving FHL and related entities. In February 2026, the IHC directed the Petroleum Division and the DGPC to proceed under the law against FHL and Spud Energy over an unauthorised change of effective control in violation of Pakistan's petroleum rules. The court issued a decisive order on February 10, directing the Ministry of Energy (Petroleum Division) and the DGPC to initiate enforcement action against FHL and Spud Energy. The matter relates to a transaction executed in early 2025, through which Jura Energy Corporation allegedly transferred effective control of its corporate group – including FHL and Spud Energy – to IDL Investments via an offshore arrangement, without obtaining prior approval from the government of Pakistan.