ISLAMABAD: A parliamentary committee on Thursday postponed a briefing on the Ministry of Energy (Petroleum Division) recommendations regarding two inquiry reports on alleged illegal third-party sales in the Badin-IV South Block by M/s PEL.
This decision followed grave concerns from committee members over the appointment of a junior officer as Director General (Petroleum Concession) to regulate oil and gas exploration companies.
Umer Farooq chaired the meeting of Senate Standing Committee on Petroleum held on Thursday, here at Parliament House.
Quratul Ain Marri termed the appointment of a junior officer as DG (PC) unjustified and asked to replace with a senior officer of the ministry. “We will not support ad hoc arrangement of the ministry for appointing a 19 grade officer as acting DG (PC) and he should be replaced with a senior one,” she said.
In his ruling, the Chairman Committee recommended the Petroleum Division to appoint a grade 20 officer as DG (PC) before the next meeting of the committee.
Earlier, the DG PC apprised the committee that the matter related to third party gas sale in the Badin-IV South Block (Sindh) is sub judice and the same will be decided in accordance with court decision.
Three companies had working interest in the block - Operator Petroleum Exploration (Pvt) (47.50 percent), Frontier Holding Pvt Limited (FHL) (27.50 percent) and Gulf Petroleum (GPX) (25 percent) working interest. Badin-IV South Block covering an area of 844.63 sq kms, located in District Badin and Sujawal was granted on January 5, 2006.
An inquiry committee was constituted on February 17, 2023 to inquire into the allegations which concluded its proceedings without developing unanimous recommendations.
Meanwhile, Petroleum Division directed M/s PEL on June 22, 2023 to stop sale of gas from Badin IV South to third party. PEL challenged the letter dated June 22, 2023 in Islamabad High Court (IHC).
The IHC on June 27, 2023 issued the stay order in favour of M/s PEL. Since then single hearing held in IHC. “Net hearing is not yet fixed”, acting DG PC informed the committee.
Badin IV South joint ventures partner (JVPs) made four discoveries namely, (Ayesha, Ayesha North, Aminah, Zahrah North).
M/s PEL applied for gas allocation from Ayesha Gas Field on September 23, 2014 in accordance with Marginal Guidelines 2013 which says government was supposed to accept gas within 90 days.
According to brief circulated among members committee states government has not allocated gas from Ayesha Field within stipulated timeframe, therefore, PEL claimed that Badin IV South JVPs was free to sale gas to third party.
The government on February 24, 2015 allocated gas from allocated gas from Ayesha Gas Field to the SSGC. Commercial production was started on February 5, 2020 from Ayesha Gas Complex in Badin IV South Block.
The FHL alleged on December 6, 2022 that PEL has been involved in sale of gas to a third party without having consent from the government and its joint venture partners.
Copyright Business Recorder, 2024
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