Attock Refinery cuts 10,000 bbl crude per day from OGDC

The Attock Refinery (ARL) has cut lifting of crude oil by 10,000 barrels per day from the Oil and Gas Development Company (OGDC). This may cause shut-down of producing fields, leading also to gas crisis in case of more curtailment, Business Recorder has learnt. ARL on routine lifts 20,000 to 25,000 barrels per day from OGDC.
ARL has reduced picking crude oil from OGDC after suspending fuel supply to Pakistan State Oil (PSO), with receivables accumulated to Rs 183.2 billion on Friday. PSO is to pay Rs 37.38 billion to ARL on account of fuel supply.
"OGDC, which has no storage facility for crude oil, may be forced to shut down producing fields if ARL further curtails lifting crude oil," sources said, expressing fear that gas supply may also be cut due to closure of producing fields.
OGDC in its letter sent to ARL on April 20, 2011, said that a sum of Rs 33.634 billion was overdue on account of crude oil/condensate invoices, including late payment of Rs 2.53 billion, in the shape of surcharge. OGDC has requested ARL to settle overdue amount. When contacted, Chief Executive Officer (CEO) of ARL, Adil Khatak, confirmed cut in upliftment of crude oil by 10,000 barrels per day and said that OGDC was in difficult situation due to curtailment.
"We are still suspending fuel supply to PSO due to non-payment of dues and, therefore, we have reduced 25 percent production of the refinery," he said, adding that due to suspension of fuel supply to PSO, ARL has reduced upliftment of crude oil from OGDC. He expressed fear that oil wells of OGDC could permanently close down if the existing situation prolonged.
"PSO has not been able to provide funds, and fuel suspension will continue unless the government assures firm payment plan," he said, adding that ARL supplies jet fuel to PSO for flights at Peshawar airport. At present, ARL is not supplying jet fuel to PSO, and flights at Peshawar air port may be affected due to shortage of products if present situation continues.
ARL supplies 10,000 to 15,000 tons low sulphur furnace oil (LSFO) to PSO for Kot Adu Power Company (Kapco) that is suspended now. Khatak claimed that ARL was to receive more than Rs 42 billion dues from PSO on account of fuel supply.
As on April 22, 2011, PSO receivables against different clients stood as follows: Wapda Rs 43.6 billion, Hubco Rs 82.8 billion, Kapco Rs 37.04 billion, PIA Rs 2.157 billion, OGDC Rs 345 million, KESC Rs 4.28 billion, Pakistan Railways Rs 1.17 billion, financial charges from PIA Rs 1.017 billion, price differential claims (PDC) on high speed diesel (HSD) Rs 1.382 billion and PDC on imported PMG Rs 5.41 billion. PSO''s payables stood as: Parco Rs 39.5 billion, PRL Rs 13.2 billion, NRL Rs 9.2 billion and Bosicor Rs 4.69 billion and Rs 40.9 billion to international fuel supplier.
As on April 20, oil refineries were to pay dues to OGDC as ARL Rs 35.01 billion, NRL Rs 11.7 billion, PRL Rs 8.8 billion, Parco Rs 6.6 billion, ENAR Rs 204.099 million, Byco Rs 5.5 billion, SNGPL Rs 14.4 billion, SSGC Rs 31.15 billion, UPL Rs 3.35 billion, FKPC Rs 550.9 million, Wapda Rs 20.5 million, KESC Rs 606.9 million, PSO Rs 49.020 million and Admore Rs 51.344 million. OGDC was to receive Rs 13.7 billion from oil refineries, oil marketing companies (OMCs) and gas distribution companies on account of later payment surcharge.