This was stated by company's spokesperson on Thursday that the OGDCL enters into Sale Purchase Agreements (SPA's) with the highest bidders under a very transparent mechanism.
The spokesperson added the bids were invited through press and the impression given in the news item that any political pressure was involved in the award of the contact was completely baseless.
The official said the tender for the sale of Low Pressure Gas was advertised on August 7, 2011 and auction was held on August 24, 2011.
Total numbers of 10 bids were received with M/s Mehar Gas Pvt Ltd as the highest, bidder and tenders were opened in the presence of bid opening committee and bidders representatives, the spokesperson said.
The official said the contract was awarded to the highest bidder and the timely decision not only avoided flaring of low pressure gas but also generated significant revenues for OGDCL.
Accordingly sale/purchase agreement was signed on January 10, 2012, the official added.
Likewise, the spokesperson said, the tender for Rajian Oil Field low pressure gas was press advertised on September, 5, 2010 and bids were opened on September 20, 2010 in the presence of bidder's representatives.
The bids were evaluated on the basis of approved criterion. total of seven bidders participated in the bid opening. The highest bid of M/s EGAS Pvt Ltd was approved by OGDCL, accordingly sale/purchase agreement was signed on November 8, 2010. Low pressure gas supply to M/s EGAS was started on February 1, 2011.
The official further clarified that whole of the process was done as per practice in vogue and in line with existing low pressure gas policy guidelines issued by Ministry of Petroleum & Natural Resources.
As far as unsafe transportation of gas is concerned, buyers are bound to complete all necessary arrangements and obtain all approvals from concerned authorities.
OGDCL has already issued instructions in this regards on September 11, 2012 wherein OGDCL directed low pressure gas buyers for installation of gas processing units.