Delaying installation of compressors at Qadirpur gasfield: Naveed takes action against OGDCL officials

Federal Minister for Petroleum and Natural Resources Syed Naveed Qamar announced on Thursday to take action against the officials of Oil and Gas Development Company Limited (OGDCL) involved in delaying the installation of compressors at Qadirpur gasfield.
While addressing a press conference, Minister said that installation of compressors at Qadirpur gasfield should have been made in time as it started in year 2006.He hoped that compressors would be installed on or before the deadline of May or June 2010 to save the field. "We want to sustain the current production at present level from Qadirpur gasfield and if possible enhance it to meet the country requirements," he maintained.
He also admitted the OGDCL had been involved in violation of rules and regulations regarding the procurement of materials. "The issues in this regard need to be addressed," Minister added. Minister also said that government would take measures to reduce the losses of gas utilities, including SSGCL and SNGPL that stood at 7-8 percent.
Regarding the issue of LPG allocation by OGDCL, he said that he had directed to cancel all allocations made on ad hoc basis and auction the allocations through proper bidding to ensure transparency in the process. He said that benchmark of LPG price was Saudi Contract price and government would look into the flaws of LPG pricing formula if possible.
"The increase in the price of LPG is due to gap in supply and demand", he said adding that some companies who were opposing the signature bonus introduced by OGDCL for LPG allocation wanted to take the whole money into their pockets. He noted that signature bonus would result in bringing the price of locally produced LPG at par with the imported LPG to provide level playing field to all the stakeholders.
Regarding oil and gas exploration activities of OGDCL, he said that government was working to enhance its production by concentrating on drilling more wells. He claimed that 250 MMCFD additional gas from Kohat had been added to the system. He also said that government was working on other options to bring gas to meet the country's requirements.
"We are at the advance stage to finalise the LNG deal with Qatar hopefully in the current month," he said adding that imported LNG would be added to the system by 2011. He further added that government would also import gas through Iran- Pakistan (IP) gas pipeline project to meet domestic need.
Responding to the questions about the recent hike in gas prices, he said that government was forced to enhance gas prices in line with the well head gas prices of exploration companies. Well head gas prices are linked to international crude oil prices and government would have to pick up the subsidy that would be arranged by increasing taxes.
"Due to lower gas prices of Balochistan province, government had to pay arrears since 1954," he said adding that now the government had equalised the well head prices across the country to give more Gas Development Surcharge (GDS) to the Balochistan province.