ECC’s advice sought to cancel Jura Energy’s rights

The Petroleum Division has placed the petroleum rights of Jura Energy Corporation before the cabinet's Economic Coordination Committee for revocation, after the Law Division gave its view on the matter. According to Dawn, the case centres on the transfer of 73.3 per cent of the controlling shares held by Phoenix Exploration Ltd, a Bermuda company, to IDL Investments Ltd of the British Virgin Islands, which took place without the government's prior consent.

Jura Energy, a Canadian oil and gas explorer, operates in Pakistan mainly through Frontier Holdings (Pvt) Ltd and Spud Energy Pty Ltd. These two arms hold working interests in several petroleum rights granted through concession deals with the government. The Petroleum Division regards the transfer at the ultimate parent level as a shift in effective control over those rights, while the company contends that its subsidiaries stayed under its control and that no government approval was needed.

The Law Division's opinion left the choice to the Petroleum Division, which put two options before the ECC: revoking all petroleum rights held by Spud Energy and Frontier Holdings, or issuing a caution and granting retrospective approval of the transfer. The Directorate General of Petroleum Concessions had earlier opened proceedings over the alleged change of control.