Deteriorating law and order: Tullow Pakistan is leaving Pakistan

18 Jan, 2008

Tullow Pakistan, a foreign exploration and production company, has put its blocks and other assets up for sale, saying it is no longer possible for the company to continue finding carbon reserves amid deteriorating law and order situation in Pakistan.
The announcement has invited a harsh government reaction. The Director General Petroleum Concession (DGPC) of the ministry of petroleum moved the Lahore High Court seeking court orders to stop the company''s exit from Pakistan.
The ministry has prayed the court to direct Tullow Pakistan not to leave the country without paying the outstanding liabilities. The petitioner has also prayed that Tullow Pakistan was ''fleeing'' without paying dues amounting to Rs 488 million. Tullow Pakistan invested billion of rupees during the last over one decade. It is facing problem for the last few years.
The company floated the proposal for selling assets in Pakistan along with two fields owned by it and another two in NWFP where it has major shareholding with other JV partners.
Tullow Pakistan contested the DGPC in a written reply filed by its counsel. It has contended that nothing was outstanding against it in terms of fines/liabilities and that the amount shown against it as outstanding was part of the campaign launched by the DGPC for defaming the company. Tullow Pakistan has also lodged a protest with the secretary of the ministry for using harsh language against it in the petition.

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