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Coronavirus
LOW Source: covid.gov.pk
Pakistan Deaths
28,269
1724hr
Pakistan Cases
1,264,384
72024hr
1.61% positivity
Sindh
465,486
Punjab
437,793
Balochistan
33,120
Islamabad
106,445
KPK
176,774

ISLAMABAD: Managing Director of state-owned Oil and Gas Company Ltd (OGDCL) Shahid Saleem Khan has tendered his resignation to the Petroleum Division.

He confirmed before a parliamentary committee, “Yes, I resigned”. Shahid Saleem Khan had been appointed as MD OGDCL on January 21, 2020 for a three-year term.

Secretary Petroleum Dr Arshad said that Saleem had tendered his resignation on the ground that he had health issues.

“We ask them to stay at critical phase of the company but he had his health issues,” he said.

OGDCL: Circular debt reaches Rs701bn?

He maintained that the resignation of the MD is yet to be approved by the competent authority- the board of directors.

The secretary and the MD OGDCL appeared before a sub-committee of the Public Accounts Committee (PAC), which examined the audit report of audit years, 2010-11 to 2017-18 of the Petroleum Division.

Convener Committee Syed Naveed Qamar questioned the MD OGDCL, whether he had resigned or had not resigned.

Responding to some media reports that the federal government and the OGDCL Board of Directors were not satisfied with his performance and due to the delay of decisions for two months in the OGDCL the company was losing its credibility, the MD said, “I found lack of decision-making in the company [by the board] and all the tasks that were carried out, were with the directives of the MD”. He further said, “During my tenure as MD, I tried hard to incorporate fairness and transparency in the affairs of the company but I failed”.

Earlier, the secretary interrupted and said the OGDCL was in the middle of restructuring and was hiring candidates to fill 10 to 12 high-level posts.

He said though the company had stable cash flow; however, it needed diversification to tap untapped deposits.

Rejecting the explanation of the secretary petroleum, Naveed Qamar said what the MD OGDCL said was true.

The committee also examined audit paras pertaining to the OGDCL.

On Tuesday, the company announced its financial results for the year ended June 30, 2021.

Despite the adverse impact of the Covid-19 pandemic on the oil and gas sector, the OGDCL, during the year, posted improved sales revenue of Rs239.104 billion (FY 2019-20: Rs232.925 billion).

OGDC discovers gas & condensate reserves in Bannu Basin

Higher sales are primarily attributable to increase in average realised prices of gas and LPG to Rs383.88/Mcf (FY 2019-20: Rs356.82/Mcf) and Rs66,345/ton (FY 2019-20: Rs63,997/ton), respectively.

Moreover, enhancement in crude oil and LPG production coupled with rise in average exchange rate to Rs160.60/US$ (FY 2019-20: Rs158.32/US$) lent strength to financials.

However, lower average crude oil realised price of US$ 46.67/BBL (FY 2019-20: US$ 46.76/barrel) negatively influenced the financials.

In addition to the above, the OGDCL’s profitability during the year under review was impacted by reduction in other income on account of exchange loss and decline in interest income.

Moreover, higher operating expenses on account of increase in salaries, wages and benefits, work-over charges, repair and maintenance and amortization of development and production assets adversely affected the financial performance.

Nevertheless, the company recorded profit after tax of Rs91.534 billion (FY 2019-20: Rs100.938 billion) translating into an earning per share of Rs21.28 (FY 2019-20: Rs23.47).

Copyright Business Recorder, 2021

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