Oil and Gas Law in Pakistan

The oil and gas sector, from exploration and production through transmission, distribution, and marketing, is strategically essential, heavily regulated, and capital-intensive, involving the state, regulators, and major investors. Businesses and investors in the sector operate within a framework of petroleum policy, licensing, concessions, and regulation, and the legal and regulatory dimension is central to every venture. Global Law Company advises investors, operators, and businesses across Pakistan on oil and gas law, regulation, and transactions.

The oil and gas sector spans the upstream (exploration and production), midstream (transmission and storage), and downstream (distribution and marketing) segments, each with its own legal and regulatory framework. We advise across these segments, helping clients secure the rights, licences, and approvals they need and structure and document the transactions and contracts the sector involves.

The oil and gas framework

Oil and gas in Pakistan is governed by petroleum policy and a framework of laws and rules covering the different segments of the sector. The upstream sector, exploration and production, operates under petroleum exploration and production rules and policies, with concessions and licences granted by the government and exploration and production conducted under petroleum concession agreements. The midstream and downstream sectors, transmission, distribution, storage, and marketing of petroleum and natural gas, are regulated by the Oil and Gas Regulatory Authority (OGRA) under its governing law, covering licensing, tariffs, and regulation. The sector also engages the relevant government ministries and the foreign-investment framework. Understanding which segment and framework apply is the starting point for any oil and gas matter.

Upstream: exploration and production

The upstream sector, the exploration for and production of oil and gas, is governed by the petroleum exploration and production framework and conducted under concessions and petroleum concession agreements between the government and exploration and production companies. We advise companies and investors in the upstream sector on the licensing and concession framework, on petroleum concession and related agreements, on joint operating and farm-in/farm-out arrangements between exploration and production companies, and on the regulatory and government dimensions of upstream operations. Upstream ventures are high-risk, high-investment, and long-term, and sound legal structuring and documentation of the concessions and agreements are central to managing the risk and protecting the investment. We bring the capability these complex upstream arrangements require.

Midstream and downstream: transmission, distribution, and marketing

The midstream and downstream sectors, the transmission, distribution, storage, and marketing of petroleum products and natural gas, including LPG, LNG, and the operation of fuel and gas distribution and marketing businesses, are regulated by OGRA. We advise businesses in these segments on OGRA licensing and regulation, on the establishment and operation of distribution, marketing, storage, and related businesses (including LPG and LNG ventures and fuel stations and depots), and on compliance with the regulatory framework and tariffs. For businesses in the midstream and downstream sectors, securing the appropriate OGRA licences and maintaining regulatory compliance are foundational to operating lawfully, and we bring the regulatory knowledge to help them do so.

Transactions, contracts, and investment

The oil and gas sector is contract- and investment-intensive, involving concessions, joint ventures, supply and offtake arrangements, infrastructure, and financing. We advise on and document the transactions and contracts the sector involves, joint ventures and farm-in/farm-out agreements, supply, purchase, and offtake agreements, infrastructure and construction contracts, and the financing of oil and gas projects, and on the investment structures and approvals for foreign and domestic investment in the sector. These transactions are typically large and long-term, and sound structuring and documentation are central to managing the commercial and regulatory risks. We coordinate the transactional, regulatory, and investment dimensions to help clients structure and execute oil and gas ventures effectively.

Disputes and regulatory proceedings

The sector generates significant disputes, over concessions and joint ventures, regulatory decisions and licensing, tariffs, and supply and offtake arrangements, that are often high-value and technically complex. We represent oil and gas businesses and investors in these disputes, including regulatory proceedings before OGRA and its appellate forums and disputes under concession, joint-venture, and commercial agreements through litigation and arbitration. Protecting a client's rights under its concessions, licences, and contracts, and its regulatory position, is central to the viability of an oil and gas venture, and we bring both the regulatory and the dispute capability to do so. Effective handling of these disputes protects the substantial investments the sector involves.

How Global Law Company helps

We advise investors, operators, and businesses across the whole of oil and gas law, the regulatory and concession framework, upstream exploration and production, midstream and downstream operations and OGRA licensing, transactions and investment, and disputes and regulatory proceedings. Because the sector is strategically essential, heavily regulated, and capital-intensive, we bring the combined regulatory, transactional, and dispute capability it requires. Our focus is the rights, approvals, and contractual certainty on which oil and gas ventures depend.

Why choose Global Law Company

Oil and gas work rewards advisers who understand the petroleum and OGRA frameworks across the upstream, midstream, and downstream segments and can handle the sector's transactions and disputes, and clients value that we bring all of this. We secure licences and concessions, structure and document transactions, and handle disputes and regulatory proceedings. For a strategic, regulated, capital-intensive sector, that capability is exactly what is needed.

Talk to an oil and gas lawyer in Pakistan