The compression project at Qadirpur gas field is in doldrums due to lack of co-ordination between the Oil and Gas Development Company Limited (OGDC) and the contractors, which has strongly upset the Ministry of Petroleum, Business Recorder has learnt. The gas production from the third largest Qadirpur gas field can reach zero level if the compression project is not completed by June 30, 2010, sources said.
There is a tug of war between OGDC and Sui Norhtern Gas Pipeline (SNGPL), a project contractor, and Enar, consultant for detailed engineering design of the project. Sources said that contradictory reports on status of the project by these companies had strongly upset the new Petroleum Secretary Kamran Lashari in a meeting held on March 5.
He expressed anger on the sorry state of affairs, and said that both SNGPL and Enar were well aware of the critical nature of the project and despite availability of qualified professionals and resources, progress on the project was being hampered due to small operational issues. He warned that no compromise in case of delay in the project would be tolerated.
Sources in SNGPL told Business Recorder that during the meeting, SNGPL accused OGDC of hampering civil work on compressors' foundation at Qadirpur gas field. Briefing the meeting, the Managing Director of SNGPL said that civil work on compressors' foundation on Qadirpur gas field had been held up due to difference of opinion on bolt design foundation, and OGDC was not allowing it to proceed on one pretext or another. He said that SNGPL was the sole buyer of the Qadirpur processed gas and was experiencing constant decline in gas supply for the last 12 months. He claimed that SNGPL was not interested in taking the compression project contract at Qadirpur gas field but due to intervention of the Ministry of Petroleum and Natural Resources, SNGPL was involved in expediting the project.
But OGDC/Enar representatives claimed that work had not been stopped but was held up on one foundation only. "We are ready to abandon the project, and will not claim any damages," MD of OGDC said.
He noted that the detailed engineering of the project had almost been completed by 94 to 100 percent. He added that delivery of long lead material is expected to be completed in the third week of May, 2010.
Project manager of compression project assured completion on scheduled. He added that SNGPL had been awarded contract of civil, electrical and mechanical work at site and maintained that there had been delay in foundation excavation by SNGPL due to dewatering issue which had been resolved now.
"SNGPL has assured completion of ten compressors foundation by March 31, 2010 as per schedule and stated that it would continue civil work on the remaining 4 compressors' foundations without any break," he added.
DG Gas pointed out that OGDC was facing delay in delivery of bulk material. He said that OGDC and Enar needed to cooperate with SNGPL and, instead of creating undue hurdles, they should provide solutions. Representative of Enar said that SNGPL had been given the drawing of civil work for compressor foundations since December 31, 2009.
"But SNGPL disagrees with Enar on design of anchor bolt used in compressor foundation," he said, adding that slight changes can be made to facilitate SNGPL after looking into their specific problems.