OGDCL clarifies stance: Uch Compression Project vital for meeting rising energy demand

ISLAMABAD: Apropos of a news item published in a section of the press regarding Uch Compression Project, the factual position is that the Uch Gas Field is located in Balochistan and providing low BTU gas to Uch Power Limited (UPL). Initially its well head pressure was 2100 psi; however with the passage of time pressure has dropped to around 1200 psi and further decline in pressure continues as per reservoir behavior.

In order to meet the contractual obligations with UPL to provide the low BTU gas at a certain pressure, OGDCL engaged internationally reputed firms i.e. Weatherford & Schlumberger to conduct comprehensive integrated reservoir simulation study. As a result of the study, installation of compressor station was recommended to continuously supply gas to UPL. It is pertinent to mention here that tendering process of Uch Compression Project was also initiated in the past; however due to single bidder it was annulled. The provision of low BTU gas to UPL at required pressure is the cornerstone for selection of equipment/ compressor.

Based on available technical information, TORs were prepared and press tendering process was initiated. Engineering consultant was hired to prepare tender documents for EPC contractor through press tender. Various OEMs interacted with OGDCL and consultant during the tendering process and sought further information/clarifications which were provided to ensure healthy competition.

Bids were evaluated in accordance with TORs and technically responsive and financially lowest bidder has been determined. The entire process was completed in accordance with PPRA rules and OGDCL procurement procedures. It is a vital time bound project that is required to be completed well in time to avoid penalty of around $245,000 per day as any shortfall in contract quantity or pressure would expose OGDCL to liquidated damages.

As far as factually incorrect and mischievous WhatsApp message of a General Manager (GM) is concerned, he has concocted a story to malign the present MD/CEO who has never interacted with him directly or indirectly. The former GM has no role in the award of contract for Uch Compression Project. Notwithstanding the intimidation and pressure tactics being relied upon by certain elements, the process will be concluded strictly in accordance with the procedure and rules. Elements interested in the outcome of this case will not be allowed to sabotage the project. OGDCL team is committed to serve the organization to the best of its abilities.

Copyright Business Recorder, 2022