ISLAMABAD: The Petroleum Ministry has been approached for immediate action to halt the unlawful sale of approximately 1.3 billion cubic feet (BCF) of gas worth $1.3 million from the Badin South Block in Sindh as per the findings of the ministry’s own inquiry committee.
In a letter addressed to Petroleum Minister Musadik Malik, it was alleged that the gas was being sold in cash, resulting in significant losses to the national exchequer.
The government missed out on approximately $6.9 million in royalty and windfall levy revenue, as well as $4.6 million in income tax and $2.6 million in sales tax.
Frontier Holdings Limited, a subsidiary of Jura Energy Corporation, accused Petroleum Exploration (Pvt) Limited (PEL) of illegally selling gas from the Badin IV South Block to Shahzad Processing Solutions (Pvt) Ltd, an affiliate of PEL.
This sale was neither authorised by the federal government nor approved by the non-operated joint venture partners.
Despite the formation of two inquiry committees to investigate the matter, PEL managed to obtain a stay order against the committee’s findings. Frontier Holdings urged the Minister for Petroleum to intervene and stop the illegal gas sale, while also urging the ministry to pursue the court case vigorously in the Islamabad High Court. The company noted that PEL had been selling the gas for over 30 months.
Furthermore, PEL’s outstanding royalty and other government obligations exceed Rs4.5 billion.
Copyright Business Recorder, 2024
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