Exploration issues: proposal to set up Irsa-like body discussed

Federal government and provinces on Thursday considered a proposal to set up an independent authority on the pattern of Indus River System Authority (Irsa) to deal with issues regarding mineral, gas and oil reserves exploration arising after implementation of 18th Constitutional Amendment, Business Recorder has reliably learnt.
Sources said that after 18th Amendment, provinces want to ensure 50 percent rights to lease out mineral, oil and gas reserves. "Provinces also have demanded to ensure their share of royalty according to the production in respective province," sources said, adding that provinces would collect date regarding royalty collection to develop new mechanism. Sindh was producer of 72 percent oil and gas and therefore wanted its share according to production.
In a high level meeting held under the chairmanship of the Federal Minister of Petroleum and Natural Resources Syed Naveed Qamar on Thursday, the modus operandi in relation to exploration and production of oil and gas activities in light of the 18th Constitutional Amendment was discussed.
Syed Naveed Qamar highlighted the salient features and the spirit behind incorporating the new article 172(3) in the Constitution and the respective roles of federation and the provinces regarding grant of petroleum rights in the country in future.
New article 172 (3) says "subject to the existing commitment and obligations/mineral/oil and natural gas within the provinces or territorial waters adjacent to thereto shall vest jointly and equally in the provinces and Federal Government." Sources said a proposal was considered to set up an independent body like IRSA model and provinces'' representatives would be appointed as members to play role of mediators between provinces and federation on issues of exploration.
Meanwhile, according to a statement issued here, while addressing the participants the Minister for Petroleum invited the provinces to share their viewpoints with regard to evolving ways and means to arrive at a consensus mechanism to execute policy issues in light of the 18th Amendment. The representatives of the provinces presented their standpoint and offered suggestions as to their role in proper functioning of the new mechanism.
The participants of the meeting appreciated efforts of Syed Naveed Qamar and acquiesced with the spirit of article 172(3) as elucidated by the minister. They also lauded the role of the minister in rolling out a landmark amendment that envisaged strengthening the provinces and creating a sense of ownership in the provinces with regard to their oil and gas resources.
This will go a long way in ushering in an era of prosperity and development in the provinces and would augur well for federalism in the country, they added. After detailed deliberation, it was agreed that the existing system of award of petroleum rights may be carried out after working out the modalities in consultation with the provincial governments.
These modalities will be looked into further by a committee headed by Secretary MPNR and the concerned Secretaries from the relevant Departments of the provinces being its members. The meeting was attended by the representatives of all the four provinces including the senior Minister for Mines of Khyber Pakhtunkhwa, Raheemdad Khan, Shazia Marri, Minister for Coal and Energy Development Department, Government of Sindh and senior officers of the Ministry of Petroleum and Natural Resources.