ISLAMABAD: A parliamentary panel on Monday raised concerns over the OGDCL’s failure to issue the production bonus to date and its violation of the Supreme Court’s judgment.
The Senate Standing Committee on Petroleum has been apprised that the OGDCL is not obligated to pay the production bonus; however, members committee expressed serious reservations that despite the matter being addressed by the Supreme Court, the Ministry of Petroleum had yet to review the court’s judgment.
The chairman of the committee noted that the matter had been approved for an upgrade two months ago, on 19th December 2024, yet progress on the case remained slow. The additional secretary of the Petroleum Division assured the committee that the Supreme Court’s orders would be reviewed and a way forward would be formulated accordingly.
The committee was also briefed on financial and administrative irregularities, including details of inquiries conducted over the past three years. It was reported that embezzlement of pipeline material at the Central Base Store (CBS) in Manga by company officials had resulted in a financial loss of nearly Rs380 million.
Senator Umer Farooq sought clarity on the reported loss, and upon inquiry, the officials confirmed the amount.
Similarly, the committee was informed about the Bannu West project, where stolen civil material had resulted in an estimated financial loss of Rs5 million. Additionally, the embezzlement of scrapped industrial materials at CMS Lahore and the recovery of approximately Rs28 million were also reported.
Furthermore, the committee received a briefing on the curtailment of indigenous gas from local fields. It was highlighted that local fields were shutting down due to an agreement with Qatar, under which 10 cargo shipments arrive each month.
The discussion also underscored the critical condition of pipelines, which are under immense pressure and at risk of bursting, along with the lack of adequate storage facilities.
Following the exchange of views, Senator Umer Farooq emphasised the need for a detailed review of drilling operations and associated costs on a daily basis. He recommended a comprehensive report on gas extraction and development across different areas, the number of drilling operations conducted, and the time frame for each.
He also requested details regarding the utilisation of corporate social responsibility (CSR) budget allocations and the operational costs exceeding budgeted amounts.
In reference to the 27th August 2024 recommendations, Senator Umer Farooq raised serious concerns regarding the Iran-Pakistan gas pipeline and noted that while many goods continue to arrive from Iran without facing sanctions, development projects are subjected to restrictions.
The committee members also expressed concerns over the lack of clarity regarding the Board of Directors for petroleum companies.
They recommended seeking guidelines from the Ministry of Finance on this matter, as well as on the appointment process for managing directors.
Senator Umer Farooq raised concerns over the absence of competent candidates for key positions and suggested that the advertisement for the post be shared with the committee. The chairman of the committee emphasised the urgent need for implementation and directed officials to report back with a timeline for progress.
He also recommended calling representatives from the Ministry of Finance to provide further clarity on the issue.
The Senate Standing Committee on Petroleum, chaired by Senator Umer Farooq, convened today at Parliament House.
The meeting was attended by senators, Quratulain Marri, Mir Dostain Khan Domki, Abdul Wasay, and Rana Mehmoodul Hassan, along with the additional secretary and joint secretary of the Petroleum Division and senior officials from the relevant departments to review updates on administrative and financial irregularities within the sector.
Copyright Business Recorder, 2025
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