PESHAWAR: Ministry of Petroleum and Natural Resources has decided to grant production bonus to those districts where oil and gas reserves have been discovered, said White Paper 2011-12 of the Finance Department Government of Khyber Pakhtunkhwa for financial.
The funds will be spent through Petroleum's Social Development Committees (PSDC) comprising MNAs Chairmen, MPAs Tehsil Taluka Nazims, district Nazim members, DCO (Secretary) of the district and two representative of the Exploration and Production (E&P) Company Member/ Vice Chairman.
Secretary of the PSDC (DSO) will open and administer a joint bank account with the title Petroleum's Social Development Fund (PSDF), to be operated by District Coordination Officer and the Executive District Officer (EDO) Finance and Planning for the purpose of funding projects identified by the PSDC through the production bonus payable by the E&P Company.
All those E&P companies who are obligated to pay production bonus to the government for infrastructure development of the area will deposit the production bonus directly in the bank account of the Secretary (DCO) of the PSDF in consultation with the Director General, Petroleum Concessions (DGPC).
The proceeds of first production bonus against Tal black of MOL was US $ 5,00,000 (Rs. 29.486 million), which had already been deposited in the account of DCO Karak and DCO Hangu during the year of 2008-09.
Second production bonus against the Tal Block of MOL was US $ one million (RS. 85.809 m), which had been deposited in the account of DCO Karak and Hangu amounting to Rs. 66.963 million and Rs.18.846 million respectively during the financial year 2010-11.
Third bonus of US $ 1.5 million may become payable against the said block during next financial year of 2011- 12, the will be directly paid by the respective Exploration and Production (E& P ) company to the concerned Districts Governments under the existing guidelines of productions bonus.
The Provincial Government has also decided to transfer 5 per-cent shares of receipts on account of Oil and Gas receivable from Federal Government to the respective districts where well head of Oil and Gas are located.
In this connection report of the committee headed by the Chief Secretary, KPK regarding utilization of 5 per sent share has been approved by the Provincial Cabinet. The said 5 per sent share will be over and above the size of District and Provincial ADP and will be utilized on Electricity, Supply of Gas, Education, Technical Education, Water Supply Schemes, Roads and Health facilities.
Utilization of 5 per cent share in the socio-economic condition of the area. For the financial year of 2010-11 a sum of Rs.225.185 has already been allocated and released to concern Districts i.e. Kohat and Karak as 5 per sent share of royalty on oil, gas Excise Duty on Natural Gas and Gas Development Surcharge.
Moreover the last installment of Rs.42.071 million is also paid to Sui Northern Gas Pipeline from the provision of 5 per cent share from the current financial year for providing, gas facilities to the natives of the district Karak and Kohat which has approved by the Ministry of Petroleum and Natural Resources of the Federal Govt.
Beside Hydel resources, the Province of KPK has been blessed with large reserves of Oil and Gas. After 18th amendment Provincial Govt. has equal share with the Federal Govt. in all the forth coming production regarding Oil and Gas.
Keeping in view the Eighteenth amendment Provincial Cabinet has given the approval of establishment of Oil and Gas Exploration Company. The company will be registered soon with the Security Exchange Commission of Pakistan and other relevant institutions.
After registration this company will be such as OGDCL, MOL and PPL in different blocks. In compliance with the decision of Peshawar High Court under Article 158 of the Constitution of Islamic Republic of Pakistan, all the commercial undertakings like CNG etc in the Province are exempted from loadshedding.
Copyright APP (Associated Press of Pakistan), 2011
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