The Oil and Gas Regulatory Authority (Ogra) has taken decision to raise wellhead gas price at Salesabil (Rodho) field, owned by Dewan Petroleum Limited (DPL), by one dollar per mmbtu, which the Ministry of Petroleum believes the Authority's decision is 'contempt of court', Business Recorder has learnt.
The Supreme Court on February 17, 2011 had directed that "present arrangement shall continue" regarding the wellhead price at DPL's Salesabil field, pending final decision. The Ministry of Petroleum has sent a letter to Ogra to immediately withdraw the notification of hike in wellhead gas price of DPL's Salesabil field.
"The wellhead price at Salesabil field has been raised from $2.8 to 3.89 dollars per mmbtu, registering a hike of $1 per mmbtu, which would be passed on to the consumers," sources said. Sources in Ogra said that the Authority was facing contempt of court case in Islamabad High Court due to non-implementation of its orders. The Lahore High Court, Rawalpindi bench, had served a notice of contempt of court on the Authority (Ogra) over failure to implement the court order to fix the wellhead gas price at Salesabil (Rodho) field despite lapse of five months.
"Now, case has been transferred from Lahore High Court Rawalpindi bench to Islamabad High Court, that directed Ogra to comply with the orders of High Court to fix wellhead price of DPL's Salesabil field," sources said, adding that the Authority had taken decision to raise wellhead price of field to comply court orders. The Authority took decision on February 15, 2011 and issued notification on February 17, 2011. The Court under order W.P.N.3708/2009 dated 14.07.2010 directed the respondents No 1 (Ogra Chairman) and 2 (Member Finance Mir Kamal Khan Marri), ie Government of Pakistan, Ministry of Petroleum and Natural Resources and Directorate General of Gas, Ministry of Petroleum and Natural Resources to fix the wellhead price of gas at Salesabil (Rodho) at the earliest. Subsequently, the Ministry of Petroleum moved a petition in the Supreme Court against the order of LHC and the proceedings are ongoing.
The High Court order says "that an intentional act of inaction on part of Respondents constrained the petitioner to file the Writ Petition No 370812009 dated 12-12-2009 before this Honourable High Court. Honourable Court issued directions dated 14- 12-2009 to the Respondents to do the needful and the mentioned Respondents are the responsible individuals to implement the orders of this Honourable Court".
The High Court observed that in spite of lapse of almost five months and in spite of reminding the respondents through letter dated 7.12.2010, no step towards the fixation of the wellhead gas price had been taken by the present respondents who, by virtue of their office, were supposed to act upon the orders of this Court.
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