ISLAMABAD: China has pressed Pakistan to settle $220 million in outstanding payments owed to United Energy Pakistan (UEP), warning that delays could undermine investor confidence and disrupt operations, officials said.
According to sources in the Petroleum Division, Pakistan’s ambassador in Beijing sent an urgent note highlighting that the dues relate to gas supplied by UEP to Sui Southern Gas Company (SSGC), which currently receives about 260–270 million cubic feet per day. Liquidity constraints have already forced UEP to lay off staff in recent weeks.
The Special Investment Facilitation Council (SIFC) has called for immediate resolution, stressing the importance of protecting foreign investor confidence. However, SSGC has claimed that billions of rupees in refunds from the Federal Board of Revenue remain pending and must be cleared before it can pay UEP.
UEP, which acquired BP Pakistan’s assets in 2011, has grown into the country’s largest foreign oil and gas exploration and production company. It operates extensive gas fields across Sindh and holds offshore exploration blocks in the Arabian Sea.
Officials warned that timely settlement of the dues is critical not only for UEP’s operations but also for maintaining investor trust in Pakistan’s energy sector, already under strain from liquidity and regulatory challenges.
