Petroleum Ministry Year 2010 was marked with revelation of several scams

The year 2010 was marked with revelation of several scams in the Petroleum Ministry, however, the LNG scandal was a multibillion dollar scam of which the Supreme Court took suo motu notice. Ministry of Petroleum reportedly manipulated approval from the Economic Co-ordination Committee (ECC) of the cabinet to award the multibillion dollar Mashal LNG Project to the Dutch and French firms consortium '4Gas and GDF', without raising any flags with the then chair of the ECC, Shaukat Tarin.
Ministry of Petroleum had reportedly recommended Shell Company and ignored Vitol/Fauji Foundation's cheaper proposal thereby raising serious questions over the approval of the project by the ECC. The price difference between Shell and Vitol was $1.5 billion.
Oil and Gas Development Company Limited (OGDCL) was also the focus of media attention in 2010 in terms of senior appointments made on the basis of nepotism and in defiance of qualifications and experience required for the posts. Adnan Khwaja was appointed Managing Director (MD) of company while facing charges of corruption instituted by National Accountability Bureau (NAB). His qualification was FA pass and he had no relevant work experience in the field. The Supreme Court took suo motu notice of appointment compelling the government to terminate his services.
OGDCL awarded a $22 million contract to a US based company for procurement of compressors to install at Qadirpur gas field, which also raised serious questions. It was reported that the contract was awarded without following bid procedure. OGDCL continued to make illegal appointments throughout the year. Petroleum Minister reportedly sent a list of 400 candidates from his constituency to be appointed at oil fields sparking a controversy forcing the OGDCL to scrap the plan.
OGDCL recently received bids for multimillion-dollar project of Kunner Pasakhi field following a controversial formula whereby the contract can be awarded to the costliest bidder. During the year 2010, PSO unearthed a financial scam of Rs 100 million at Lal Pir Depot. The Lal Pir depot management was found guilty of stealing furnace oil worth Rs 100 million. An inquiry is still underway, however, five officials have been suspended.