View
223
Download
0
Category
Preview:
Citation preview
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 1/12
Gas Regulation 2011
Published by Global Legal Group, inassociation with Ashurst LLP, withcontributions from:
ǼLEX
Ali Budiardjo, Nugroho, ReksodiputroAllens Arthur RobinsonBell GullyBNG LegalChandler & Thong-ek Law Offices LimitedCMS Cameron McKennaCogan & Partners LLPCriales, Urcullo & AntezanaDebarliev, Dameski & KelesoskaDr Kamal Hossain & AssociatesDuane Morris LLPEstudio Gálvez AbogadosFortunati & Asociados
GarriguesGorrissen FederspielHaavind ASHogan LovellsInterJuris Abogados, S.CJeantetAssociés AARPIKALO & ASSOCIATESKing & Spalding LLPLoyens & Loeff N.V.Mohamed Ridza & CoO'Flynn ExhamsPachiu & AssociatesRosenberg, Hacohen, Goddart & Ephrat
SchoenherrSNR DentonStudio Legale Bonora e AssociatiTGC Corporate LawyersUría MenéndezVellani & Vellani
The International Comparative Legal Guide to:
A practical cross-border insightinto Gas Regulation work
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 2/12
Vellani & Vellani
Pakistan
1 Overview of Natural Gas Sector
1.1 A brief outline of Pakistan’s natural gas sector, including ageneral description of: natural gas reserves; natural gas
production including the extent to which production is
associated or non-associated natural gas; import and
export of natural gas, including liquefied natural gas
(LNG) liquefaction and export facilities, and/or receiving
and re-gasification facilities (“LNG facilities”); natural gas
pipeline transportation and distribution/transmission
network; natural gas storage; and commodity sales and
trading.
The oil and gas sector in Pakistan has seen unprecedented growth
since the independence of Pakistan in 1947. The petroleum
industry has been a major contributor to the national development
of Pakistan as a result of the large indigenous gas discoveries. Asof 1st January 2010, the recoverable reserves of natural gas have
been estimated at 28.33 trillion cubic feet (‘tcft’) which are
adequate for meeting the gas requirement of Pakistan for 6 years at
the current rate of production. Natural gas production during July-
March 2009-10 was 4,048.76 million cubic feet per day (“mmcfd”)
as compared to 3986.53 mmcfd during the corresponding period the
previous year, showing an increase of 1.56% (Pakistan Economic
Survey 2009-2010, Chapter 13 Energy). Over the years the natural
gas share in primary energy supply mix has increased from 40% in
1999-2000 to over 48% in 2009 (Pakistan Energy Yearbook 2009).
The supply of gas has exhibited an increase of 1.6% during the
period July-March 2009-2010. This increase has been due to higher
production of natural gas during this period. (Pakistan Economic
Survey 2009-2010.)
Currently, natural gas distribution is exclusively undertaken by two
state-owned corporations, namely, Sui Southern Gas Company
Limited (“SSGCL”) and Sui Northern Gas Pipelines Limited
(“SNGPL”). The gas is supplied to consumers through 10,667
kilometres of transmission networks and 95,866 kilometres of
distribution system, which is one of the largest transmission and
distribution infrastructures in the developing world (Investment
Opportunities in Pakistan Oil and Gas Sector, Ministry of
Petroleum and Natural Resources).
The present constrained demand of gas for 2009-10 is 5190.5
mmcfd. The gas shortfall in January 2010 was 1,295 mmcfd. At
the current pace of economic development, Pakistan’s gas demand
and supply projections indicate a widening gap of approximately
2.7 billion cubic feet per day (“bcfd”) by 2015, rising to 5.8 bcfd in
2020 and up to 10.3 bcfd in 2025.
In order to bridge this widening gap the Government of Pakistan
(“GOP”) has adopted a three-fold strategy. This comprises of
maximising domestic production for which the new Petroleum
Policy 2009 has been approved, importing natural gas through
trans-national pipelines and importing LNG through the private and
the public sector.
While the trans-national pipelines are yet to commence operation,
the GOP is working towards the LNG import option, which will be
quicker to put in place. For this purpose, the GOP nominated
SSGCL as the project facilitator for the establishment of a 3.5
million tonnes per annum (equivalent to 500 mmcft of gas) LNG
import project, with a regasification facility to be located near the
port city of Karachi. The project was to be operational from the end
of 2011. However due to certain constraints this project will be
commissioned by June 2012.
Pakistan Gasport Ltd is also trying to set up an LNG Floating
Terminal with a handling capacity of 3 million tonnes per annum.
1.2 To what extent are Pakistan’s energy requirements met
using natural gas (including LNG)?
Natural gas plays a key role in Pakistan’s energy balance as it
currently accounts for more than 48% of Pakistan’s primary energy
supplies.
At present all local demand is met through indigenous natural gas
and the demand supply gap has been widening since 2007-2008, as
evidenced by natural gas rationing during the winter months in
certain parts of the country.
As already mentioned in question 1.1 above, Pakistan has already
taken steps towards setting up facilities for the import of LNG.
1.3 To what extent are Pakistan’s natural gas requirements
met through domestic natural gas production?
Currently, 100% of the country’s natural gas requirements are met
through local production. As mentioned in response to question 1.1
above, the GOP is working towards the LNG import option, by
facilitating the establishment of a 3.5 million tonnes per annum
(equivalent to 500 mmcft of gas) LNG import project with a re-
gasification facility to be located near the port city of Karachi. The
project was to be operational from the end of 2011. However due
to certain constraints this project will be commissioned by June
2012. Additionally, Pakistan Gasport Ltd is also trying to set up anLNG Floating Terminal with a handling capacity of 3 million
tonnes per annum.
Zahra Ahmad
Aisha Ghazi
217
Chapter 27
ICLG TO: GAS REGULATION 2011© Published and reproduced with kind permission by Global Legal Group Ltd, London
WWW.ICLG.CO.UK
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 3/12
Vellani & Vellani Pakistan
1.4 To what extent is Pakistan’s natural gas production
exported (pipeline or LNG)?
At present Pakistan is not exporting natural gas or LNG. However,
as already mentioned, it is looking to import LNG for its rising
demand supply gap.
The Pakistan Iran Gas Sale and Purchase Agreement, signed in
2009, became effective on 13th June, 2010. The pipeline will
supply 750 mmcfd. The construction of the pipeline will begin in
January 2012 and the first gas flow shall be available by mid-2015.
2 Development of Natural Gas
2.1 Outline broadly the legal/statutory and organisational
framework for the exploration and production
(“development”) of natural gas reserves including:
principal legislation; in whom the State’s mineral rights to
natural gas are vested; Government authority or
authorities responsible for the regulation of natural gas
development; and current major initiatives or policies of
the Government (if any) in relation to natural gas
development.
The principal legislations (including government policy) relating to
natural gas are as follows:
(a) Petroleum Exploration and Production Policy 2009 (“the
Policy”). This explains the GOP’s policies, procedures, tax
and pricing regime for the petroleum exploration and
production (E&P) sector. This new policy amended the 2007
policy by revising the gas prices and by providing certain
incentives in order to promote investment and attract direct
foreign investment.
(b) Regulation of Mines and Oilfields and Mineral Development(Government Control) Act, 1948 and the rules framed
thereunder. This is the principal statute empowering the GOP
to regulate the exploration and production of petroleum.
(c) The Pakistan Onshore Petroleum (Exploration and
Production) Rules, 2009. Regulates the issuance of licences
and permits for exploration and production onshore and the
conditions under which such activities may be undertaken.
(d) Pakistan Offshore Petroleum (Exploration and Production)
Rules, 2003. Regulates the issuance of licences and permits
for exploration and production for areas offshore and the
conditions under which such activities may be undertaken.
(e) Oil and Gas (Safety in Drilling and Development)
Regulations, 1974. Provides detailed requirements for
health, safety and environment.(f) Natural Gas (Price for Supplies by Purchasers) Rules, 1976.
Empowers the fixation of price for natural gas.
(g) Natural Gas Distribution (Technical Standards) Regulations,
2004. Regulates the issuance of licensees for, and the terms
on which a licensee may undertake the regulated activity of,
distribution of natural gas.
(h) Natural Gas Rules, 1960. Regulates issuance of licences,
distribution pipelines and charges.
(i) Natural Gas Regulatory Authority (Licensing) Rules, 2002.
The aim of the rule is to provide a comprehensive guideline
on the issuance of licences.
(j) Natural Gas Tariff Rules, 2002. The aim of the rules is to
provide guidelines for the determination, approval,
modification or revision of the tariff charged by licensees.
Following the 18th amendment to the Constitution of Pakistan
1973, the provinces and the GOP shall have joint control and equal
share over the oil and gas explorations in Pakistan, pursuant to the
amended Article 172 which provides the following:
(2) “All lands, minerals and other things of value within the
continental shelf or underlying the ocean beyond the
territorial waters of Pakistan shall vest in the Federal
Government.”
(3) “Subject to the existing commitments and obligations,
mineral oil and natural gas within the Province or theterritorial waters adjacent thereto shall vest jointly and
equally in that Province and the Federal Government.”
Furthermore, under the Constitution of Pakistan, the National
Assembly together with the Senate (Parliament/Majlis-e-Shoora)
has exclusive legislative authority in matters relating to oil and
natural gas.
Upstream activities in the oil and gas sector are administered and
regulated through the Directorate General of Petroleum
Concessions (“DGPC”), Ministry of Petroleum and Natural
Resources.
2.2 How are the State’s mineral rights to develop natural gas
reserves transferred to investors or companies
(“participants”) (e.g. licence, concession, service contract,
contractual rights under Production Sharing Agreement?)
and what is the legal status of those rights or interests
under domestic law?
Licences are granted under the Regulation of Mines and Oilfields
and Mineral Development (Government Control) Act, 1948, read
with the Pakistan Onshore Petroleum (Exploration and Production)
Rules, 2009 or as the case may be, the Pakistan Offshore Petroleum
Rules, 2003.
For onshore operations, participants are granted concessions
through a Petroleum Concession Agreement (“PCA”), pursuant to
which exploration licences and production leases are granted.For offshore operations, exploration licences and production leases
are granted to Government Holdings (Private) Limited (“GHPL”)
and participants enter into a Production Sharing Agreement
(“PSA”) with GHPL.
All local and foreign companies operating in Pakistan are eligible to
acquire such rights. Foreign companies not operating in Pakistan
may also be eligible if they are able to demonstrate technical and
financial capability. Every company interested in acquiring
petroleum rights is required to provide details of the business and
evidence of its financial and technical qualification to conduct the
relevant activities.
Any question or dispute relating to the licence is to be resolved by
arbitration in Pakistan in accordance with laws of Pakistan.
2.3 If different authorisations are issued in respect of different
stages of development (e.g., exploration appraisal or
production arrangements), please specify those
authorisations and briefly summarise the most important
(standard) terms (such as term/duration, scope of rights,
expenditure obligations).
For onshore operations, the following permits, licences and
leases are granted pursuant to a PCA:
(a) Reconnaissance Permit:
This permit grants to the licensee the right to carry out geophysical,
geochemical and geological operations, including the drilling of stratigraphic wells. The maximum acreage under this permit is
unlimited in open areas and is valid for an initial term of one year
with a possible renewal for a further year.
Paksan
WWW.ICLG.CO.UK© Published and reproduced with kind permission by Global Legal Group Ltd, London
ICLG TO: GAS REGULATION 2011
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 4/12
Vellani & Vellani Pakistan
(b) Petroleum Exploration Licence:
This licence grants an exclusive right for exploration, including
drilling and production. The duration of the licence is five years.
The initial term of five years is divided into two phases, phase I
(which is for three years) and phase II (which is for two years), with
two possible renewals of two years each for exploration.
The maximum acreage granted under this licence is 2,500 sq km
(which in a special case may be extended up to 7,500 sq km), with
a subsequent progressive area relinquishment of 30% of the original
area after phase I, 20% of the remaining area after phase II, and
10% of the remaining area on or before the second renewal.
(c) Petroleum and Development and Production Lease:
Upon making a commercial discovery and subject to the GOP
approving a development plan prepared by the participants, the
GOP will grant to the participants a development and production
lease in respect of the discovery area. Such leases grant exclusive
rights to develop and produce hydrocarbons for up to 25 years, with
a possibility of renewal for a further term of five years.
For offshore operations, the following permits, licences andleases are granted pursuant to a PSA.
(a) Reconnaissance Permit:
Through this permit GHPL is allowed to carry out through the
participant’s preliminary surveys including, geophysical,
geological, geochemical and geotechnical surveys and geological
information bore hole. Such permits are granted for a term of one
year, with the possibility of a renewal for a further term of one year,
subject to fulfilment of the agreed work programme for the initial
term.
(b) Petroleum Exploration Licence:
The petroleum exploration licence grants exclusive right for
exploration, including drilling and production testing. The duration
of the licence is five years, which is divided into three phases, Phase
I and II of two years each and Phase III of one year, with two
possible renewals of two years each for exploration. The maximum
acreage is 2,500 km with a subsequent area relinquishment of 30%
of the original licence area at the end of Phase I, 30% of the
remaining licence area at the end of Phase II, and 20% of the
remaining licence area at the end of the first renewal.
(c) Petroleum Development and Production Lease:
Upon completion of the agreed appraisal and evaluation and
commercialisation work and upon approval of a development plan,
the GOP will grant to GHPL a lease in respect of the discovery area
for a term of 25 years, with a possible renewal for a further term of
five years if commercial production is then continuing.
2.4 To what extent, if any, does the State have an ownership
interest, or seek to participate, in the development of
natural gas reserves (whether as a matter of law or
policy)?
Onshore areas are divided into three zones with minimum local
participation requirement for zone 1, zone 2 and zone 3 being 15%,
20% and 75% respectively. If locally-incorporated exploration and
production companies (majority owned by nationals of Pakistan) do
not participate in the minimum participation requirements
mentioned above, GHPL is entitled to participate in the concession.
GHPL will not in any event act as operator.
As mentioned above, in the case of offshore operations, GHPL is
granted all licences and leases and the participants enter into a PSA
with GHPL, under which the participants operate and manage the
concession and participants may recover 100% of the costs up to a
limit of 85% of gross revenues.
2.5 How does the State derive value from natural gas
development (e.g. royalty, share of production, taxes)?
The GOP derives value from natural gas development through
royalties at the rate of 12.5% of the wellhead value. Tax on income
is also payable at the rate of 40% of the profits. In addition, the
GOP also charges ground rent for the acreage covered by an
exploration or production licence.
2.6 Are there any restrictions on the export of production?
Subject to the country’s internal requirements, E&P companies
incorporated outside Pakistan are allowed to export their share of
petroleum in accordance with export licences. The volumes that
may be exported will be calculated on the basis that the gas reserves
that exceed the net proven gas reserves in Pakistan with regard to
the projected gas demand for the next 15 years can be considered
for export. PCAs and PSAs usually make provisions for GOP
assistance for the export of petroleum by such E&P companies.
2.7 Are there any currency exchange restrictions, or
restrictions on the transfer of funds derived from
production out of the jurisdiction?
All remittances out of Pakistan are subject to control of the State Bank
of Pakistan (which is the country’s central bank), under the Foreign
Exchange Regulation Act 1947. Under the Policy, foreign companies
may remit a guaranteed percentage of the sale proceeds. This
guaranteed percentage varies between 65% and 75% of the total gross
revenue, depending on the licensing zone. Generally, PCAs and PSAs
will contain a provision under which the GOP agrees to assist in
procuring SBP permission, where required, for remittance of net sale
proceeds arising in Pakistan from the sale of petroleum.
2.8 What restrictions (if any) apply to the transfer or disposal
of natural gas development rights or interests?
The working interest owner cannot sell, assign, transfer, convey or
dispose of all or any part of its rights and obligations under a
licence, lease or an agreement, without the written approval of
Director General of Petroleum Concessions (“DGPC”). As regards
assignment to affiliates, the PCA or PSA (as the case may be) would
need to make appropriate provisions permitting such arrangement.
The DGPC may impose such condition as he may consider
appropriate, to ensure full payment of royalty, corporate tax and
windfall levy by the assignee in respect of the interests assigned or transferred.
If a licence holder wishes to surrender his right he will have to
provide the DGPC with one month’s notice of his intention to do so
and once he has fulfilled all his obligations under the licence he
may be able to surrender all or part of his right.
2.9 Are participants obliged to provide any security or
guarantees in relation to natural gas development?
Under the Pakistan Onshore Petroleum (Exploration and Production)
Rules 2009 and the Pakistan Offshore Petroleum (Exploration and
Production) Rules 2003, once a licence is granted, the GOP will
require the participants to provide an irrevocable and unconditional
guarantee. The could be in the form of a bank guarantee equal to 25%
of the minimum financial obligation from a bank of international
repute or a parent company guarantee from a company of international
repute. In case of local production or local assets, the GOP may
219
Paksan
ICLG TO: GAS REGULATION 2011© Published and reproduced with kind permission by Global Legal Group Ltd, London
WWW.ICLG.CO.UK
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 5/12
Vellani & Vellani Pakistan
require security in the form of a first and preferred lien on the
petroleum production or the assets as the case may be. They may also
accept deposits in an escrow account as a guarantee.
2.10 Can rights to develop natural gas reserves granted to a
participant be pledged for security, or booked foraccounting purposes under domestic law?
Section 70 of the Pakistan Offshore Petroleum (Exploration and
Production) Rules, 2003 allows a company, subject to permission
and consent of the GOP, to create a security interest for obtaining
financing for petroleum operations.
2.11 In addition to those rights/authorisations required to
explore for and produce natural gas, what other principal
Government authorisations are required to develop
natural gas reserves (e.g. environmental, occupational
health and safety) and from whom are these
authorisations to be obtained?
An E&P company prior to commencing petroleum operations will
have to submit an environmental protection plan and a safety plan to
the GOP for approval. The various steps and measures to be taken by
an E&P company are set out in The Pakistan Onshore Petroleum
(Exploration and Production) Rules, 2009 and the Pakistan Offshore
Petroleum (Exploration and Production) Rules, 2003.
Furthermore, an E&P company will also have to ensure that they
follow the guidelines set out in the following:
a) the Pakistan Environmental Protection Act, 1997 and the
rules framed thereunder, which essentially requires clearance
from the Pakistan Environmental Protection Agency through
the submission of an Environmental Impact
Assessment/Initial Environmental Examination; and
b) the Oil and Gas (Safety in Drilling and Production)
Regulations, 1974 (Safety Regulations), which contains
regulation and detailed requirements for health and safety
and the protection of the environment.
2.12 Is there any legislation or framework relating to the
abandonment or decommissioning of physical structures
used in natural gas development? If so, what are the
principal features/requirements of the legislation?
Under section 60 of The Pakistan Onshore Petroleum (Exploration
and Production) Rules 2009 and Section 63 of the Pakistan
Offshore Petroleum (Exploration and Production) Rules, 2003,abandonment of any area requires the prior written approval of the
DGPC. Furthermore, areas which are abandoned or relinquished
will have to be of a sufficient size to enable petroleum operations to
be carried out in the future.
2.13 Is there any legislation or framework relating to gas
storage? If so, what are the principle
features/requirements of the legislation?
The storage of gas is a regulated activity by the Oil and Gas
Regulatory Authority (“OGRA”), under the Oil and Gas Regulatory
Ordinance 2002 and the Natural Gas Regulatory Authority
(Licensing) Rules, 2002, which continue to apply notwithstanding
the repeal of the Natural Gas Regulatory Authority Ordinance,
2002. Under section 23 of the OGRA Ordinance a general or
specific licence is required to construct and operate any natural gas
or LPG, LNG or CNG storage facilities. These licences contain the
conditions upon which such activity is to be carried out.
3 Import / Export of Natural Gas (including LNG)
3.1 Outline any regulatory requirements, or specific terms,
limitations or rules applying in respect of cross-border
sales or deliveries of natural gas (including LNG).
Presently, Pakistan does not import or export natural gas. However,
work is underway on a pipeline running over 2,775 km from the
Persian Gulf in Iran to a port in Karachi (the Iran-Pakistan
Pipeline). The Gas Sales and Purchase Agreement (“GSPA”)
signed in June 2009 became effective on 13 June, 2010. The
construction of the pipeline, that will supply 750 mmcfd of gas, will
begin in January 2012 and the first gas flow is expected to be
available by mid 2015.
Furthermore, Turkmenistan Afghanistan Pakistan and India signed
a gas pipeline framework agreement in September 2010 ,which
envisages the import of 1.35 bcfd gas into Pakistan through a 1,680
km-long pipeline through Turkmenistan and Afghanistan. This
project is expected to come into effect by 2017.In light of the above, the GOP has incorporated Inter-State Gas
Systems (Private) Limited (a joint venture between SSGCL and
SNGL, the two state-owned utilities) to work as an interface
between the GOP and external agencies to facilitate import of
natural gas.
Please refer to questions 7.1 and 7.2 below for a detailed discussion
on the import of LNG.
4 Transportation
4.1 Outline broadly the ownership, organisational and
regulatory framework in relation to transportationpipelines and associated infrastructure (such as natural
gas processing and storage facilities).
This area of activity is also regulated by OGRA under the Oil and
Gas Regulatory Ordinance 2002 and the Natural Gas Regulatory
Authority (Licensing) Rules 2002. At present all natural gas
transportation pipelines and associated infrastructure is owned and
controlled by two state-owned corporations, namely, Sui Southern
Gas Company Limited (“SSGCL”) and Sui Northern Gas Pipelines
Limited (“SNGPL”).
SSGCL holds an exclusive distribution and sales licence in the
Southern and Western provinces of Sindh and Baluchistan. SSGCL
is a public limited company which is listed on the Karachi, Lahore
and Islamabad Stock Exchanges.
SNGPL is the largest gas transmission and distribution company in
Pakistan, with exclusive rights to distribute and sell natural gas to
customers in the Northern provinces of Punjab and NWFP. SNGPL
is a publicly-listed company which is listed on the Karachi, Lahore
and Islamabad Stock Exchanges.
In addition to these, OGRA has issued licences to seven additional
operators also engaged in transmission and sale of natural gas.
These contribute to approximately 20% of the total natural gas sale.
The law requires the gas companies to obtain licences for the
construction of pipelines/storage, transmission, distribution and
sales of natural gas. These licences contain the conditions upon
which such activity is to be carried out.E&P companies operating in Pakistan are allowed to lay
transportation pipelines within their lease area (from the wellhead
to the field gate) from where the gas distribution to the (residential
and commercial) consumers is taken over by SSGCL and SNGPL.
Paksan
WWW.ICLG.CO.UK© Published and reproduced with kind permission by Global Legal Group Ltd, London
ICLG TO: GAS REGULATION 2011
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 6/12
Vellani & Vellani Pakistan
4.2 What Governmental authorisations (including any
applicable environmental authorisations) are required to
construct and operate natural gas transportation pipelines
and associated infrastructure?
As stated in question 4.1 above, E&P companies can only lay gas
transportation pipelines from the wellhead to the field gate. For this purpose, E&P companies will have to submit to DGCP an
environmental management and protection plan along with a safety
plan. Furthermore, under the Environmental Protection Act 1997,
an environmental impact assessment will have to be submitted to
the Federal Environmental Protection Agency.
4.3 In general, how does an entity obtain the necessary land
(or other) rights to construct natural gas transportation
pipelines or associated infrastructure? Do Government
authorities have any powers of compulsory acquisition to
facilitate land access?
Land has to be acquired for laying pipelines. Where governmentland is available, whether Federal or Provincial, such land is
generally provided by the relevant government by way of lease or
by granting a right of way. If the land required is privately-owned,
then the provincial government will acquire such land under the
Land Acquisition Act, 1894 through compulsory acquisition, and
will then provide such land on lease.
Section 33 of the Oil and Gas Regulatory Authority Ordinance,
2002 authorises OGRA to certify in such manner and on such terms
and conditions, as may be prescribed in the rules, on an application
by a licensee, that the requirement of a licensee to acquire property
is for a public purpose and for the purpose of the Land Acquisition
Act, 1894, OGRA’s certificate is conclusive proof that the proposed
acquisition for such licensee is for a public purpose.
4.4 How is access to natural gas transportation pipelines and
associated infrastructure organised?
As mentioned in question 4.1, all natural gas transportation pipelines
and associated infrastructure is owned and controlled by SSGCL and
SNGPL. The two companies’ core business is to buy natural gas in
bulk from E&P companies, transmit it to load centres over its high
pressure transmission system and sell it to its customers (domestic,
commercial and industrial) through its supply network.
4.5 To what degree are natural gas transportation pipelines
integrated or interconnected, and how is co-operationbetween different transportation systems established and
regulated?
The gas is supplied to consumers through over 10,667 kilometres of
transmission networks and 95,866 kilometres of distribution
systems, the majority of which is owned by SSGCL in Sindh and
Baluchistan and SNGPL in Punjab and N.W.F.P. Both of these
utilities are state-owned and are managed by a board of directors.
4.6 Outline any third-party access regime/rights in respect of
natural gas transportation and associated infrastructure.
For example, can the regulator or a new customer
wishing to transport natural gas compel or require the
operator/owner of a natural gas transportation pipeline or
associated infrastructure to grant capacity or expand its
facilities in order to accommodate the new customer? Ifso, how are the costs (including costs of interconnection,
capacity reservation or facility expansions) allocated?
All licensees are obligated under Rule 20 of the Natural Gas
Regulatory Authority (Licensing) Rules 2002:
to provide, for a fee determined by the Authority, non-
discriminatory open access to its transmission or distribution
facilities, provided spare capacity not being used by it is
available;
to provide interconnection to its transmission or non-
exclusive distribution facilities on mutually-agreed terms
and conditions, provided spare capacity not being used by it
is available and the interconnection is technically feasible;
andto extend and expand its transmission or distribution
facilities at the request of a person, provided that it is
technically feasible and apportionment of the cost is agreed.
However, no regulations have as yet been framed by OGRA in this
regard.
4.7 Are parties free to agree the terms upon which natural
gas is to be transported or are the terms (including
costs/tariffs which may be charged) regulated?
All transportation terms including costs/tariffs are regulated by
OGRA through the Natural Gas Regulatory Authority (Licensing)
Rules, 2002 and Natural Gas Tariff Rules 2002. The licensee is not permitted to charge in excess of the tariff approved by OGRA. The
2002 Tariff Rules provides a procedure for petitioning OGRA to
determine or alter tariffs.
5 Transmission / Distribution
5.1 Outline broadly the ownership, organisational and
regulatory framework in relation to the natural gas
transmission/distribution network.
Please refer to question 4.1 above.
5.2 What Governmental authorisations (including any
applicable environmental authorisations) are required to
operate a distribution network?
Please refer to questions 4.1 and 4.2 above.
5.3 How is access to the natural gas distribution network
organised?
Please refer to question 4.1 above.
5.4 Can the regulator require a distributor to grant capacity or
expand its system in order to accommodate newcustomers?
An increase in capacity or expansion of the system is the exclusive
responsibility of the two state-owned utilities.
221
Paksan
ICLG TO: GAS REGULATION 2011© Published and reproduced with kind permission by Global Legal Group Ltd, London
WWW.ICLG.CO.UK
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 7/12
Vellani & Vellani Pakistan
5.5 What fees are charged for accessing the distribution
network, and are these fees regulated?
E&P companies operating in Pakistan cannot access the distribution
system.
5.6 Are there any restrictions or limitations in relation to
acquiring an interest in a gas utility, or the transfer of
assets forming part of the distribution network (whether
directly or indirectly)?
As mentioned above, the transmission, transportation and
distribution of natural gas is at present exclusively carried out by
SSGCL and SNGPL. The utilities are publicly-listed companies, in
which the GOP owns majority shares, over 70% and 54%
respectively. Interest in the companies may be privately acquired to
the extent of the free float in the market.
However, by virtue of Rule (xxxi) of the Natural Gas Regulatory
Authority (Licensing) Rules 2002, a licensee may not permit any
change in its ownership or controlling interest without prior approval of OGRA. A licensee may permit a change in security
interest over its assets to secure finances obtained in the normal
course of business, but a change in security interest in any other
case requires OGRA’s approval.
6 Natural Gas Trading
6.1 Outline broadly the ownership, organisational and
regulatory framework in relation to natural gas trading.
Please include details of current major initiatives or
policies of the Government or regulator (if any) relating to
natural gas trading.
Pakistan does not engage in natural gas trading.
6.2 What range of natural gas commodities can be traded?
For example, can only “bundled” products (i.e., the natural
gas commodity and the distribution thereof) be traded?
Please refer to question 6.1 above.
7 Liquefied Natural Gas
7.1 Outline broadly the ownership, organisational and
regulatory framework in relation to LNG facilities.
There is currently no LNG facility available in Pakistan. As
mentioned in question 1.1 above, in order to bridge the widening
gap between gas demand and supply, the GOP is working towards
the LNG import option. In anticipation of such, the GOP has set out
the following Policy and Rules:
(a) Liquefied Natural Gas (LNG) Policy, 2006.
(b) Oil and Gas Authority (Liquefied Natural Gas) Rules, 2007
(“LNG Rules”).
(c) Pursuant to the LNG policy 2006, an LNG import project
may be structured in the following two ways:
(i) Integrated Project Structure: Under this an “LNG
Developer”, which may be a private or public sector party, joint venture or consortium would be
responsible for purchasing LNG supplies, transporting
them to its LNG import terminal (comprising
receiving, storage and regasification facilities) and
supplying regasified LNG (“RLNG”) to the domestic
market. The LNG Developer would enter into a long-
term Gas and Sales Purchase Agreement directly with
a Government-designated buyer, gas utility or bulk
customer.
(ii) Unbundled Project Structure: Under this project
structure LNG would be imported from another country by a GOP-designated buyer (gas utility or
bulk consumer), under a sale purchase agreement
which could be on a delivered ex-ship basis or on a
Free-on-Board (FOB) basis. The LNG buyer would
enter into an agreement with the LNG Terminal
Owner or Operator for the provision of LNG
receiving, storage and regasification services at its
terminal under a tolling agreement. For a Free-on-
Board purchase, the LNG buyer would, in addition,
enter into an agreement with a shipping company to
transport LNG to the receiving terminal.
The Oil and Gas Regulatory Authority is responsible for issuing
licences to LNG Developers or LNG Buyers, who will be allowed
to import LNG in accordance with applicable import laws, rules andregulations. The LNG Developer or Terminal Operator and/or
owner is required to obtain from OGRA a licence to design,
construct, operate and own an LNG terminal, subject to site
approval and satisfaction of technical, financial, health, safety and
environmental standards. During the operating period, OGRA will
regulate access rights to the terminals based on negotiated third
party access or regulated third party access, based on objective non
discriminatory tariffs. Capacity utilisation rates and tariffs will
have to be published at regular intervals as may be determined by
OGRA.
7.2 What Governmental authorisations are required to
construct and operate LNG facilities?
A licence to construct, own and operate LNG facilities is granted by
OGRA under the LNG Rules, subject to compliance with HSE and
Technical Standards, and the other provisions of the LNG Rules.
Under the 2006 LNG Policy, an LNG import project may be
structured under two alternatives, an integrated project structure or
an unbundled project structure.
Further, the LNG Developer, LNG Terminal Owner/Operator, LNG
Buyer and RLNG Buyer each require permits and licences from
Government departments such as the Ministry of Defence, Naval
Headquarters, Port Authorities, Environmental Protection Agency,
Chief Inspector of Explosives, and provincial and local government
agencies, to carry out their respective activities.
7.3 Is there any regulation of the price or terms of service in
the LNG sector?
While no regulations have so far been framed with regard to price
or terms in the LNG sector, the LNG Policy 2006 provides as
follows:
(a) In the case of an integrated product structure, where RLNG
is procured by an RLNG Buyer in the public sector, the
purchase contract is expected to be for a minimum period of
20 years and LNG is procured from an LNG Developer
offering the lowest price at the designated delivery place.
(b) In case of an Unbundled Project Structure, where LNG is
procured by an LNG Buyer in the public sector the contract
shall be for a minimum period of 20 years, and the price for
RNLG will be determined by OGRA based on: (i) the LNG
purchase price; (ii) the direct and indirect costs of
transportation, storage and regasification incurred by the
Paksan
WWW.ICLG.CO.UK© Published and reproduced with kind permission by Global Legal Group Ltd, London
ICLG TO: GAS REGULATION 2011
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 8/12
Vellani & Vellani Pakistan
LNG terminal operator/owner; and (iii) a reasonable return
on the investment made by the LNG terminal
operator/owner.
(c) Except as mentioned above, LNG Developers and LNG
Buyers may sell RLNG to end users directly based on
negotiated prices, subject to approval of OGRA.
7.4 Outline any third-party access regime/rights in respect of
LNG Facilities.
All LNG terminals and associated facilities are operated on a
system of Regulated Third Party Access (“RTPA”), based on
published tariffs or tariff methodologies. These regulations are not
applicable to an LNG terminal constructed for own or dedicated
use. Access to such terminals will be based on negotiated third
party access (“NTPA”). The RTPA and NTPA are administered and
regulated by OGRA.
An LNG Developer will have priority access to its own LNG
terminal capacity, provided it has a firm capacity utilisation plan for
own or dedicated use.
8 Competition
8.1 Which Governmental authority or authorities are
responsible for the regulation of competition aspects, or
anti-competitive practices, in the natural gas sector?
By virtue of the provisions of section 6(2)(g) of the Oil and Gas
Regulatory Authority Ordinance, 2002, OGRA has the power to
promote effective competition and efficiency in the activities within
its jurisdiction.
Additionally, the Competition Commission of Pakistan (“theCompetition Commission”) established by the Competition
Ordinance, 2007, which in October 2007 replaced the erstwhile
Monopoly Control Authority which had been established by the
Monopolies and Restrictive Trade Practices (Control and
Prevention) Ordinance, 1970, is mandated to provide for free
competition in all spheres of commercial and economic activity in
Pakistan and to protect consumers from anti-competitive behaviour.
The Competition Act 2010 (“Competition Act”) was passed by the
Parliament and has recently been given Presidential assent bringing
it into effect. Under this Act the right of Appeal from the decisions
of the Competition Commission has shifted from the High Court to
a Competition Tribunal. Also the rate of penalties has been revised
from a cap of Rs 50 million to Rs 75 million for businesses where
annual turnover could not be determined. In case of businesses
where annual turnover can be determined, the rate of penalty was
reduced from 15% of the turnover to 10% of the annual turnover.
8.2 To what criteria does the regulator have regard in
determining whether conduct is anti-competitive?
All actions or matters that take place in Pakistan and distort
competition within Pakistan are prohibited. The Competition Act
applies to all undertakings, which includes any natural or legal
person or government body, including a regulatory authority, body
corporate, partnership, association, trust or other entity in any way
engaged, directly or indirectly, in the production, supply,
distribution of goods or provision or control of services, and include
an association of undertakings.
Under section 3 of the Competition Act, no person shall abuse its
dominant position; that is, a person who is in a dominant position
shall not undertake, maintain or continue a practice which prevents,
restricts, reduces or distorts competition in the relevant market. A
relevant market may be a product market or a geographic market.
Section 3(3) of the Competition Act sets out examples of practices
which prevent, restrict, reduce or distort competition in the relevant
market.
Pursuant to section 4 of the Competition Act, undertakings are
prohibited from entering into any agreement or, in the case of an
association of undertakings, prohibited from making a decision in
respect of the production, supply, distribution, acquisition or control
of goods or the provision of services which have the object or effect
of preventing, restricting or reducing competition within the
relevant market unless exempted by the Competition Commission.
Examples of prohibited agreements are set out in section 4(2) of the
Competition Act.
Pursuant to section 10 of the Competition Act, undertakings are
prohibited from entering into deceptive market practices.
Deceptive market practices is deemed to have occurred if an
undertaking resorts to: (a) the distribution of false or misleading
information that is capable of harming the business interests of
another undertaking; (b) the distribution of false or misleading
information to consumers, including the distribution of information
lacking a reasonable basis, related to the price, character, method or
place of production, properties, suitability for use, or quality of
goods; (c) false or misleading comparison of goods in the process
of advertising; or (d) fraudulent use of another’s trademark, firm
name, or product labelling or packaging.
Section 11 of the Competition Act prohibits undertakings from
entering in a merger which substantially lessens competition by
creating or strengthening a dominant position in the relevant
market.
8.3 What power or authority does the regulator have to
preclude or take action in relation to anti-competitive
practices?
The Competition Act grants the following powers to the
Competition Commission:
(a) the power to pass one or more of the following orders
specified in section 31 of the Competition Act:
(i) In the case of an abuse of dominant position, the
Competition Commission may require the
undertaking concerned to take such actions as may be
necessary to restore competition and not to repeat the
prohibitions or to engage in any practice with similar
effect.(ii) In the case of agreements entered into in contravention
of the provisions of the Competition Act, such
agreements may be annulled or the undertaking
concerned may be required to amend the agreement or
related practice and not to repeat the prohibitions
specified or enter into any other agreement or engage
in any other practice with a similar object or effect.
(iii) In the case of deceptive market practice require: (i) the
undertaking concerned to take such actions specified
in the order as may be necessary to restore the
previous market conditions and not to repeat the
prohibitions specified in section 10; or (ii)
confiscation, forfeiture or destruction of any goods
having hazardous or harmful effect.
(iv) In the case of a merger: (i) authorise the merger,
possibly subject to certain conditions; (ii) decide that
it has doubts as to the compatibility of the merger,
thereby opening a second phase review; or (iii) undo
or prohibit the merger, but only as a conclusion of the
223
Paksan
ICLG TO: GAS REGULATION 2011© Published and reproduced with kind permission by Global Legal Group Ltd, London
WWW.ICLG.CO.UK
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 9/12
Vellani & Vellani Pakistan
second phase review.
(b) the power to issue interim orders [section 32 of the
Competition Act];
(c) the power to enter and search premises for reasonable
grounds which are recorded in writing [section 34 of the
Competition Act];
(d) the power to call for information relating to an undertaking
[section 36 of the Competition Act];
(e) the power to conduct inquiries on its own in relation to any
matter for the purposes of the Competition Act [section 37 of
the Competition Act]; and
(f) the power to impose penalties [section 38 of the Competition
Act], which could extend to Rs. 75 million or 10% of annual
turnover, and in the case of a continuing default the
Competition Commission may impose a daily fine of up to
Rs. 1 million per day.
8.4 Does the regulator (or any other Government authority)
have the power to approve/disapprove mergers or other
changes in control over businesses in the natural gassector, or proposed acquisitions of development assets,
transportation or associated infrastructure or distribution
assets? If so, what criteria and procedures are applied?
How long does it typically take to obtain a decision
approving or disapproving the transaction?
As mentioned in question 8.2 above, the Competition Commission
has the power to prohibit mergers which substantially lessen
competition by creating or strengthening a dominant position in the
relevant market.
Pre-merger notifications are required to be given to the Commission
under section 11(2) of the Competition Act, where the undertakings
concerned meet the pre-merger notification thresholds stipulated in
regulations framed by the Competition Commission (the
Competition (Merger Control) Regulations 2007) and the approval
of the Competition Commission has to be sought before such
merger may take place.
The pre-merger notification thresholds are as follows:
the value of gross assets of the undertaking, excluding the
value of goodwill, is not less than three hundred million
rupees, or the combined value of the undertaking and the
undertaking to be acquired is not less than Rs 1 billion;
annual turn over of the undertaking, in the preceding year is
not less than Rs 500 million or the combined turnover of the
undertaking and the undertaking to be acquired, the shares of
which are not less than Rs 1 billion;
the transaction relates to acquisition of shares or assets of thevalue of Rs 100 million or more; or
in case of acquisition of shares by an undertaking, if an
acquirer acquires voting shares, which taken together with
the voting shares, held by the acquirer shall entitle the
acquirer to more than 10% of voting shares.
If within 30 days the Competition Commission does not respond to
a pre-merger notification, then clearance is deemed to have been
granted. If the Competition Commission initiates a second phase
review, this review must be completed within 90 days of the receipt
by the Competition Commission of the requested information. If no
decision is rendered within the said 90-day period, it is deemed that
the Competition Commission has no objection to the merger.
The Competition Commission may grant clearance subject to suchconditions as it may determine.
Where clearance has been granted subject to conditions, then the
Competition Commission may within one year review the order of
approval on the grounds that it is satisfied that the circumstances of
the relevant market or of the undertaking have so changed as to
warrant a review of the order.
The Competition Commission may undo the merger or modify its
order, if it is determined that the approval was granted on the basis
of false or misleading information or if the conditions specified in
the order have not been fully complied with.
9 Foreign Investment and International
Obligations
9.1 Are there any special requirements or limitations on
acquisitions of interests in the natural gas sector (whether
development, transportation or associated infrastructure,
distribution or other) by foreign companies?
As stated in the preceding questions, all natural gas transportation
pipelines and associated infrastructure are owned by the two state
utilities, SSGCL and SNGPL.
SSGCL and SNGPL are public limited companies, which are listed
on the Karachi, Lahore and Islamabad Stock Exchanges with over
70% and 54% direct share holding respectively by the Government
of Pakistan. In principle a foreign company could acquire a stake
in them, through the purchase of shares on the stock exchange.
Foreign companies not operating in Pakistan but having operated
concessions in other geographical areas of the world may only be
eligible to acquire petroleum rights subject to their financial and
technical capabilities.
9.2 To what extent is regulatory policy in respect of the
natural gas sector influenced or affected by international
treaties or other multinational arrangements?
International Treaties are not by themselves applicable or
enforceable in Pakistan. All international or multinational treaties
signed by Pakistan have to be ratified by Parliament in order for
them to be binding.
10 Dispute Resolution
10.1 Provide a brief overview of compulsory dispute resolution
procedures (statutory or otherwise) applying to the natural
gas sector (if any), including procedures applying in the
context of disputes between the applicable Government
authority/regulator and: participants in relation to natural
gas development; transportation pipeline and associated
infrastructure owners or users in relation to the
transportation, processing or storage of natural gas; and
distribution network owners or users in relation to the
distribution/transmission of natural gas.
Pursuant to section 6(2)(i) and (k) of the Oil and Gas Regulatory
Authority Ordinance, 2002, OGRA may resolve complaints and
other claims against licensees for contravention of the provisions of
the OGRA Ordinance, rules or regulations and resolve disputes
between licensees, and between licensees and any other person
regarding a regulated activity. Any interested person may file a
written complaint with OGRA against a licensee for contravention
of any provision of the OGRA Ordinance, or of any rule or
regulation.
Any person aggrieved by any order or decision may within 30 days
of receipt of such decision or order appeal to OGRA and OGRA is
required to hear and decide the appeal within ninety days from the
Paksan
WWW.ICLG.CO.UK© Published and reproduced with kind permission by Global Legal Group Ltd, London
ICLG TO: GAS REGULATION 2011
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 10/12
Vellani & Vellani Pakistan
date of its presentation (Sections 11 and 12 of the OGRA
Ordinance).
OGRA may review, rescind, change, alter or vary any decision, or
may rehear an application before deciding it in the event of a
change in circumstances or the discovery of evidence which, in the
opinion of OGRA, could not have reasonably been discovered atthe time of the decision.
In addition to the above, Rule 74 of the Pakistan Petroleum
(Exploration and Production) Rules, 2001 and Rule 81 of the
Pakistan Offshore Petroleum (Exploration and Production) Rules,
2003, provide that, unless otherwise agreed, any question or dispute
regarding petroleum right or an agreement or reconnaissance
agreement shall be resolved by arbitration in Pakistan and in
accordance with Pakistani laws (Arbitration Act, 1940).
10.2 Is Pakistan a signatory to, and has it duly ratified into
domestic legislation: the New York Convention on the
Recognition and Enforcement of Foreign Arbitral Awards;
and/or the Convention on the Settlement of InvestmentDisputes between States and Nationals of Other States
(“ICSID”)?
Pakistan is a signatory to the New York convention of 1958 on
Recognition and Enforcement of Foreign Arbitral Awards and has
ratified the same by promulgating the Recognition and Enforcement
Arbitration Agreements and Foreign Arbitral Awards) Ordinance,
2007, as well as the Convention on the Settlement of Investment
Disputes between States and Nationals of Other States (“ICSID”)
ratified by promulgating the Arbitration (International Investment
Disputes) Ordinance 2007.
Pakistan is an observer state to the Energy Charter Conference and
has signed the 1991 Energy Charter Declaration.
10.3 Is there any special difficulty (whether as a matter of law
or practice) in litigating, or seeking to enforce judgments
or awards, against Government authorities or State
organs (including any immunity)?
Judgments may be obtained against the GOP and arbitral awards
may be enforced against the GOP. However, under the OGRA
Ordinance, OGRA does have immunity as no suit, prosecution or
other legal proceedings shall lie against the OGRA, the chairman,
or any member, employee, expert, consultant or adviser of OGRA
in respect of anything done or intended to be done in good faith.
10.4 Have there been instances in the natural gas sector when
foreign corporations have successfully obtained
judgments or awards against Government authorities or
State organs pursuant to litigation before domestic
courts?
Yes, there have been.
11 Updates
11.1 Please provide, in no more than 300 words, a summary of
any new cases, trends and developments in Gas
Regulation Law in Pakistan.
The Ministry of Petroleum and Natural Resources announced the
Petroleum Policy 2009 to ensure that the rules were in accordance
with the changing market conditions. It is focused on attracting
foreign investment to accelerate exploitation of indigenous natural
resources and provides a higher rate of return and lucrative
incentives to E&P companies, in order to attract investment. The
Policy is to be read with the Pakistan Onshore Petroleum
(Exploration and Production) Rules 2009, which have amended the
Onshore Rules 2001 and the Pakistan Offshore Petroleum
(Exploration and Production) Rules 2003.
In order to bridge the widening gap and increase exploration, the
GOP, during the year 2010, introduced the Draft Tight Gas
Exploration & Development Policy 2010, with the objective of establishing the policies, procedures, tax and pricing regime in
respect of exploration and production of tight gas in Pakistan.
Furthermore, in a bid to control gas theft, the GOP introduced the
Draft Gas Utilities Companies Act, 2010, empowering them to
impose a Rs 5 million penalty and three years’ imprisonment for
consumers if they are found to be involved in gas theft. Both of
these legislations are still in draft form.
Since Pakistan’s gas demand and supply projections indicate a
widening gap and in order to meet the rising demand, the GOP has
placed strong emphasis on importing gas. A number of LNG
Projects have been initiated by the government for this purpose.
Work has also commenced on the Iran-Pakistan Pipeline and the
first supply is expected by mid 2015. Furthermore, the GOP has set
a target of supplying gas to approximately 321,427 new consumers
and to more than 471 new towns/villages in 2010-2011. It is
planned by the gas companies to invest Rs 4,617 million on
transmission project, Rs 21,024 million on distribution projects and
Rs 3,278 million on other projects, bringing the total investment of
Rs 28,919 million for the said period (Planning Commission
Annual Report 2010-2011).
225
Paksan
ICLG TO: GAS REGULATION 2011© Published and reproduced with kind permission by Global Legal Group Ltd, London
WWW.ICLG.CO.UK
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 11/12
Aisha Ghazi
Vellani & Vellani
148, 18th East Street, Phase I
Defence Officers’ Housing Authority
Karachi-75500
Pakistan
Tel: +92 21 3580 1000
Fax: +92 21 3580 2120
Email: aisha.ghazi@vellani.com
URL: www.vellani.com
Ms. Aisha Ghazi is an associate in Vellani & Vellani and has been
involved in and conducted matters including general corporate
and commercial transactional work including matters relating to
finance and taxation, joint ventures, project financing, projects
involving the grant and exploitation of government concessions,
anti-trust, the setting up and operation of manufacturing facilities,
banking and financing transactions, privatisation deals, mergers,
acquisitions, foreign direct investment, incorporation of
companies, public floatation and tender offers for listed securities,
general commercial and corporate litigation and certain
arbitration matters. Such work has been conducted in the field of
petroleum, natural gas, minerals, cement, steel, tobacco, edibleoils, tea, shipping and trade, banking and finance, telecom and
civil aviation, and coal washing and coal purification.
Zahra Ahmad
Vellani & Vellani
148, 18th East Street, Phase I
Defence Officers’ Housing Authority
Karachi-75500
Pakistan
Tel: +92 21 3580 1000
Fax: +92 21 3580 2120
Email: zahra.ahmad@vellani.com
URL: www.vellani.com
Ms. Zahra Ahmad is an LLB Honours graduate from the
University College London and Barrister at Law of the Lincoln’s
Inn (London). She has primarily been involved in matters related
to intellectual property, corporate and commercial law including
drafting of contracts, advising on regulatory issues, mergers and
acquisitions, demergers, and advising national and international
clients in various fields, including pharmaceuticals, energy and
cement. She has assisted senior counsel in litigation
proceedings before the High Court. She is a member of the
General Council of the Bar of England and Wales.
Vellani & Vellani has been at the forefront of providing advice in relation to projects entailing the grant and exploitation of
government concessions in respect of oil, gas, and other minerals such as coal and copper, the exploration and production of oil
and gas, harnessing power through the setting up of hydel plants, as well as the marketing of refined petroleum and the production
and supply of natural gas and LPG in Pakistan. We have, in particular, drafted, reviewed and negotiated documentation in relation
thereto including Concession Agreements, Distribution and Marketing Agreements, Novations, Transfers and Assignments as well
as reviewed and advised government bodies with regard to various legislation proposed in regard thereto including rules and
regulations governing the grant and exploitation of rights to explore and exploit such natural resources in Pakistan.
Additionally we have also advised on other related matters in respect of such projects which include providing advice on Sale and
Purchase Agreements, Deeds of Conveyance and Deeds of Assignment of Leasehold Rights as well as capitalisation of locally
incorporated companies, foreign exchange regulations, taxation and licensing requirements and other general commercial advice
in relation thereto.
Our client profile consists mostly of multinational corporations engaged in the business of exploring and exploiting for such natural
energy resources and the refinement and marketing of such resources such as oil, gas, coal, coal-bed, methane, copper and other
minerals.
Vellani & Vellani Pakistan
Paksan
WWW.ICLG.CO.UK© Published and reproduced with kind permission by Global Legal Group Ltd, London
ICLG TO: GAS REGULATION 2011
8/4/2019 Gas Regulation 2011
http://slidepdf.com/reader/full/gas-regulation-2011 12/12
To order a copy of a publication, please contact:Global Legal Group
59 Tanner StreetLondon SE1 3PLUnited Kingdom
Tel: +44 20 7367 0720Fax: +44 20 7407 5255
Email: sales@glgroup.co.uk
Other titles in the ICLG series include:Business Crime
Cartels & Leniency
Class Actions
Commodities and Trade Law
Competition LitigationCorporate Governance
Corporate Recovery & Insolvency
Corporate Tax
Dominance
Employment & Labour Law
Enforcement of Competition Law
Environment Law & Climate Change
International Arbitration
Litigation & Dispute Resolution
Merger Control
Mergers & Acquisitions
PatentsPFI / PPP Projects
Pharmaceutical Advertising
Product Liability
Public Procurement
Real Estate
Securitisation
Telecommunication Laws and Regulations
Gas Regulation 2011The International Comparative Legal Guide to:
Recommended