Sindh Chief Minister Syed Murad Ali Shah has urged the federal government to incorporate the province’s input in the oil and gas exploration and production framework, particularly regarding the sale of 35 percent stakes to private parties. He insisted that no such sale should proceed without Sindh’s consent. Chairing a meeting of the Sindh Energy Holding Company Ltd, Murad Shah directed the Petroleum Division to include key provisions in the framework to protect Sindh’s interests.
These include ensuring that gas sold to third parties is prioritised for Sindh, requiring an NOC from the provincial government for gas sales outside the province, and allowing provinces to collect the windfall levy directly.
He also called for regular data sharing on production statistics and well-head values to ensure transparency in Sindh’s share of hydrocarbon revenues. The meeting was attended by Energy Minister Nasir Hussain Shah, Principal Secretary Agha Wasif, Energy Secretary Musaddiq Tahirkheli, and SEHCL Chief Operating Officer Tufail Khosa.
Discussions focused on expanding exploration activities, increasing revenue streams, and securing Sindh’s fair share in hydrocarbon reserves. The Chief Minister approved major initiatives to enhance Sindh’s role in energy exploration. These include: SEHCL, which currently holds a 2.5% working interest in exploration blocks, has been directed to increase this to 10-15% in highly prospective areas.
Sindh will acquire the Hidan Block, spanning Dadu, Kambar, and Shahdadkot districts. The block has estimated gas reserves of 130-140 BCF, and SEHCL will retain a 51% stake while seeking partnerships with major industry players. Production is expected to begin by Q1-2028, with projected annual revenues of $1.64 million (Rs. 460 million). The total investment is estimated at $20.3 million, with SEHCL’s share at $10.35 million (Rs. 2.89 billion).
Murad Shah highlighted Sindh’s untapped reserves, particularly tight gas fields with an estimated potential of 20-30 TCF. He also indicated interest in offshore drilling, calling it a potential game-changer for Pakistan’s energy sector. The Chief Minister announced Sindh’s decision to become a party in litigation concerning the Windfall Levy. Companies operating in the province, including United Energy Pakistan Limited and OMV Alpha, have challenged the federal government’s decision to impose WLO. Sindh’s legal team will pursue the case in the Islamabad High Court to ensure the province secures its rightful share of hydrocarbon revenues.
Shah called for greater provincial representation in state-owned energy companies. He demanded that the Federal Ministry of Petroleum reduce its representation in companies like OGDCL, PPL, and SSGCL from two members to one, replacing them with Sindh’s representatives.
Reaffirming his commitment to expanding Sindh’s energy footprint, Mr. Shah directed the Energy Department to fast-track approvals and accelerate exploration activities. “Sindh is rich in natural resources, and we must ensure that these resources are utilised effectively for the benefit of our people,” he said. “By increasing our working interest, securing new exploration blocks, and advocating for our rightful share in energy revenues, we are paving the way for a stronger, self-reliant Sindh.”
