Spinwam gas bidding flagged for violations of regulatory framework

ISLAMABAD: Questions have been raised over the bidding process launched for the sale of 35% gas from the Spinwam Gas Field, with stakeholders arguing that the tender conditions may not align with the regulatory framework approved by the Council of Common Interests (CCI) and notified by the Petroleum Division.

The concerns centre on whether the bidding process complies with SRO 11(I)/2025 and the rules governing third-party gas sales. The petroleum ministry has been approached on the issue, while a formal complaint has also been submitted to senior government authorities. The complaint contends that the tender documents do not include a mandatory requirement for bidders to hold a valid licence from the Oil and Gas Regulatory Authority (OGRA).

According to the complaint, the framework cleared by the CCI and later notified by the government permits third-party gas sales only through a competitive process involving entities that already possess valid OGRA licences. However, the tender in question reportedly allows participation by entities that are registered with tax authorities, without explicitly requiring such a licence.

Stakeholders say this departure from the stated licensing condition could weaken the regulatory structure and leave the process open to legal challenge. They argue that allowing unlicensed entities to participate would be inconsistent with the applicable policy framework and could disadvantage companies that already meet the licensing requirement.

The matter has been brought to the attention of the prime minister, the energy ministry, OGRA and other relevant authorities, with a request for an immediate review of the bidding process. Entities holding valid OGRA licences have expressed serious concern that the present tender conditions place compliant bidders at a disadvantage compared with participants who are not subject to the same regulatory requirements.

Stakeholders have warned that if the issue is not addressed, affected parties may move the superior courts to seek cancellation of the tender. With June 15, 2026 set as the deadline for bid submission, they have urged the authorities to withdraw the existing notice and issue a fresh tender in line with the CCI decision.