OGDCL receivable surges to over Rs200bn

ISLAMABAD: The Senate Standing Committee on Petroleum on Thursday was apprised that receivable of Oil and Gas Development Authority Limited (OGDCL) has piled up to over Rs.200 billion.

The committee which met with Mohsin Aziz in the Chair took up the agenda items including matter of public importance, public petition regarding violation of the Petroleum Exploration and Production Policy by PPL and UEPL and briefing on the role, functions, responsibilities and performance of OGDCL and PPL etc.

Briefing the Senate Panel, Managing Director and Chief Executive Officer OGDCL Zahir Mir informed that the company owed over Rs 200 billion against Sui Northern Gas Pipelines Ltd (SNGPL), Sui Southern Gas Pipelines Limited (SSGPL), and Power generation companies etc.

He said the company's Rs.82 billion receivable were mere cleared through Term Finance Certificate (TFC) in 2013. The committee was also apprised that prices of gas were not increased during the last five years despite recommendation of Oil and Gas Regulatory Authority.

The MD said the company utilize one per cent of its income under corporate social responsibly (CSR) initiatives and an amount of Rs. 9 billion had been spent so far.

He said a total of 773 wells were drilled and found 118 discoveries. OGDCL has total 47 oil fields across the country with net 41,564 barrel per day production, he said.

Regarding non-installation of Reverse Osmosis (RO) Water Plants by the companies involved in exploration of Oil and Gas in district Sanghar, the committee was informed that all companies were bound to deposit the social welfare obligation in the joints accounts with concerned Deputy Commissioners.

The companies were instructed to utilize the social welfare fund as per guidelines issued by the ministry.

He said an amount of Rs.140 million was to the deputy commissioner and only Rs 26 million had been spent on water projects.

The MD said social welfare committee headed by member of National Assembly of the constituency identify the schemes and concerned DC was responsible for execution of the project. Senator Dr Jahanzeb Jamaldini said that there should be a proper mechanism of oversight which could monitor spending of such funds.

He suggested that a senator should also be included in social welfare committee. Senator Shamim Afridi called for setting up dialysis centre at Kohat district and offered to bear all running expenditure of it.

The committee also set up a sub-committee to look into violation of the Petroleum Exploration and Production Policy. The Acting MD Pakistan Petroleum Limited told the Senate Panel that no bidding for new exploration was held during the last four years.

He said PPL has proposed Rs.51.4 billion for development and exploration of wells in fiscal year 2018-19.

The meeting was attended by Senators Qurat ul Ain Marri, Kauda Babar, Bahramand Khan Tangi and Lt Gen (R) Salahuddin Tirmizi and senior officials of the ministry, OGDCL, PPL. UEPL etc.