OGDCL approves uplift plan for Sanjaro gas field

The Board of Directors (BoDs) of Oil and Gas Development Company Limited (OGDCL) has approved a development plan for Sanjaro gas field, with the capacity to produce 30 million cubic feet per day gas and 100 barrels per day condensate, that would cost $63 million, Business Recorder has learnt reliably.
BoDs of OGDCL approved development plan in its meeting held on Thursday with Secretary Petroleum Imtiaz Qazi in the chair. OGDCL would, reportedly, hire consultancy services of Enra. The Dhodhak field of OGDCL has depleted and OGDCL has decided to shift plants from Dhodhak to Sanjaro field, sources said adding that OGDCL authorities informed its Board of Directors that development project will be completed in one year's time.
OGDCL is also working on development plan of Kunnar Pasakhi Deep Project (KPD), Uch, Dakni and Jhal Magasi fields. The Board was informed that OGDCL had received bids for KPD, Dakni and Jhal Magasi fields which are under evaluation. OGDCL has received three bids for multi million dollar KPD following a controversial formula which gives discretionary powers to OGDCL management to award the contract to the higher bidder. OGDCL has adopted an inexplicable formula: to award the contract for a KPD project based on 30 percent mark-up for price bid and 70 percent for technical proposal.
Kunnar Pasakhi field will produce 250 million mmcfd and 286 metric tons LPG. A powerful group operating in the energy sector was reportedly eyeing the KPD field and the bid formula has, therefore, reportedly been manipulated to award the contract to a favoured party, sources confided. OGDCL received bids from three parties-Petrosin, PDIL backed by Hyundai and Malaysia-based Company KNN.
Senate Standing Committee on Petroleum and Natural Resources has also expressed concern over the revised bid formula fearing that it may lead to litigation. One party has already challenged the revised formula in Islamabad High Court. Senate body observed that a powerful group in LPG sector was behind a move to corner the LPG extraction market. The senate committee has directed OGDCL management to submit details of revised criteria.