Sequel to 18th Amendment: Sindh asks Centre to give up dealing in E&P matters

The Sindh government has asked the federal government to refrain from signing agreements with exploration and production (E&P) companies for award of contracts for exploitation of the natural resources.
The provincial government''s latest communication reminds Islamabad that after coming into force of the 18th amendment in the constitution the award of contracts to E&P companies for exploitation of natural resources is a provincial subject and hence falls under its jurisdiction.
The Sindh government has strongly made its point in the communication to convey to the Centre that from now onward issuing of any lease or signing of any agreement with E&P companies would be tantamount to interfering in provincial affairs. Till coming into force of the 18th amendment, the federal government was negotiating, and signing, contracts with E&P companies for finding carbon and other natural resources.
The Petroleum Ministry has a full-fledged department of Director-General, Petroleum Concession, for negotiating the work programmes with E&P companies and sign the agreements for award of contracts for exploration of natural resources.
Although natural resources are provinces'' assets but the provinces do not have any role in award of the contracts to the E&P companies. This flawed system resulted in differences between the federation and provinces in several cases. The controversial Riko Dik lease is a glaring example that soured relationship between the Centre and Balochistan.
With 18th amendment, the scenario has changed altogether. The provinces are now free to take any decision regarding exploitation of their natural resources. Taking lead in the changed scenario, the Sindh government has set up ''Ministry of Natural Resources'' and has given its portfolio to Shazia Marri. She, as provincial minister for natural resources, will be negotiating with E&P companies for award of contacts for exploitation of natural resources of the province.
Khyber Pukhtunkhawa is also working in parallel to Sindh government to have its ministry of natural resources to deal with this key subject of awarding contacts for exploitation of its natural resources. However, there is confusion over the existing contracts and work programmes.
There is no clear directive in the law as to who will be responsible of any change in the exiting leases and, similarly, it is also not clear as to who will overlook the agreements already signed with E&P companies. Pakistan Exploration and Production Companies Association (PEPCA) is said to have taken up these issues with the concerned federal and provincial authorities for seeking guidelines on these issues.