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Following the recommendations of National Assembly Standing Committee on Petroleum and Natural Resources, Oil and Gas Development Company Limited (OGDCL) may scrap the tenders for development projects such as Uch-11 and Kunner Pesakhi Deep (KPD).
These projects will now be executed with strategic partners including Frontier Works Organisation (FWO) due to monopoly of some powerful groups that have caused delay in oil and gas productions. Managing Director (MD) OGDCL Naeem Malik in a meeting of the NA body chaired by Sheikh Waqas said, "the chairman''s proposal is laudable and will be implemented."
NA body chairman Sheikh Waqas in a meeting held on Thursday strongly recommended OGDCL to kick out those powerful groups from the contracts of projects such as Uch-11 and KPD that have delayed the development leading to worst energy crisis as well as loss of millions of rupees revenue to national kitty. The chairman said that strategic assets should go to strategic partners with blotless past record.
Sheikh Waqas regretted that the government had lost millions of rupees revenue due to litigation by some companies. "The country could have been able to add 500 mmcfd gas to the system had there been no litigation on different projects," Sheikh said, adding that "we request the Chief Justice of Pakistan to take action against such mismanagement." Waqas said OGDCL employees as well as the petroleum ministry officials had alliance with those groups for kickbacks and commission. Sheikh said security and law enforcement agencies could manage the security arrangements for strategic partners of OGDCL on projects such as Uch-11 where law and order situation was poor.
MD OGDCL Naeem Malik said the past management had decided once to bar those companies from participating in bids that had litigation with OGDCL. He said that three companies had participated in bids and a three-member committee was probing the papers of bidders. Financial bids have been opened that are being evaluated. "We will ensure transparency in Uch-11 project," Naeem added.

Copyright Business Recorder, 2011

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