Receivables of OGDCL against refineries, gas companies swell: PAC panel informed

Receivables of the Oil and Gas Development Company (OGDCL) against refineries and gas companies have further swelled due to unresolved issue of circular debt. The Public Accounts Committee's sub committee was informed on Wednesday that receivable of the OGDCL showed some improvement but cannot be settled until the government resolves the circular debt issue.
Managing Director OGDCL, Zahid Mir informed the committee that the OGDCL allocated gas and oil to those companies and refineries designated by the government. The company distributed its production of gas and oil among companies as per quota allocated by the government. He said these gas and oil companies are unable to clear their payment in time due to circular debt.
He further said that Late Payment Surcharge (LPS) against oil refineries and gas companies reached Rs 57 billion. However, he said the company did not get even a single penny under LPS head. Responding to audit officials' observation, MD OGDCL said that the financial system of the company cannot be straightened until circular debt issue is resolved. He further said that the exploration activities in no-go areas in KPK and Balochistan increased manifold after restoration of the law and order situation there. He said that they identified 12 petroleum concessions in Balochistan for last two year.
MD OGDCL further said that company has flat production of oil and gas as the company failed to make any big discovery. Productions in old rigs have been facing 8 to 10 per cent depreciation in productions. Currently, the OGDCL owned eight rigs, partnership with 18 rigs and are acquiring rigs on lease to minimise liabilities, he added.
Director General Petroleum Concessions revealed that the gas and oil exploration in 2015-16 was more than the target. He said the Ministry of Petroleum and Natural Resources targeted 84 wells but surpassed the target and grilled 88 wells. He said the success ratio of wells was also more than 33 percent.
Responding to Shahida Akhtar Ali's question with respect to exploration of Uranium deposits in D I Khan and southern part of KPK, Director General Minerals Dr Imran said that it was correct that they discovered nuclear fuel in the areas and other rare metals from the areas for development of defence system. "We are further studying the discoveries and are hopeful that Pakistan will become self-sufficient in nuclear fuel through uranium deposits," he added.