The Economic Co-ordination Committee (ECC) of the cabinet has directed Sindh and Oil and Gas Development Company Limited (OGDCL) to take up the issue of dormant gas fields with Prime Minister Syed Yousuf Raza Gilani, Business Recorder has learnt.
"Chief Minister Sindh and Privatisation Minister Syed Naveed Qamar were asked to hold a meeting with Prime Minister to resolve the ongoing tussle between Sindh government and OGDCL on gas pricing issue of dormant fields," sources said quoting ECC's recent decision. When contacted Secretary Petroleum Imtiaz Qazi revealed that Sindh had requested that the dormant fields be handed over to it claiming 50 percent rights after 18th amendment.
The ECC in its meeting held in last week of January 2011 had decided that the gas from Nur, Bagla, Jakhro and Sara West fields would be allocated to Sindh government, or its designated entity, subject to the conditions that: (i) OGDCL will be paid according to petroleum concession agreement, (ii) policy price for gas as well as products ie LPG and condensate be charged, (iii) product disposal by the buyer be in accordance with the prevalent rules and regulation, and (iv) all applicable taxes be paid.
The protest by OGDCL employees on dormant fields is going on for the last few days. One shareholder of OGDCL has also filed a petition in Islamabad High Court claiming that Sindh had misinterpreted 18th amendment to secure fields.
OGDCL had scrapped the tender for sale of hydrocarbon resources from dormant fields- - Nur, Bagla, Jakhro and Sara West fields - after Sindh government claimed its rights under the 18th Amendment. The tender was scrapped in spite of the fact that OGCL issued a Letter of Intent to successful bidders who have since lodged a strong protest. OGDCL employees argue that if Sindh succeeds in securing the dormant fields it may attempt to get other big fields like Qadirpur gas field.
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