Referring to a news item captioned 'Oil companies defying government procurement policy, published in Business Recorder on April 11, the spokesman of the Ministry of Petroleum and Natural Resources has stated that the news item is not based on facts.
It says that as per the terms of Petroleum Concessions Agreement, the authority to award of contract rests with the joint venture partners and approval from the Ministry of Petroleum is not required.
The partners in the Tal Block are OGDCL, PPL and GHPL in addition to POL, a private company, and MOL as Operator.
The factual position is that MOL as operator of the block, issued tender documents to eight companies on December 1, 2003, with the tender closing date as January 16, 2004.
Against the invitation to eight companies, one company submitted its bid on the closing day, which was opened by the Operator.
The technical, commercial and financial evaluation was carried out by the joint venture partners.
The clarification adds that keeping in view the first gas delivery date of end 2004, the joint venture partners unanimously recommended and approved the award of contract to the bidder.
The spokesman further clarified that neither any presentation on this issue has been made by any potential supplier to the Ministry nor does it interfere in the award of procurement contract as the exploration and production companies take the decision independently.