Oil and Gas Development Company Limited (OGDCL) is still facing 14 cases in the High Courts of Sindh, Balochistan and Rawalpindi bench of the Lahore High Court against the sale of LPG on signature bonus from Bobi field.
"Though OGDCL has earned Rs 342 million through signature bonus from the sale of LPG from two gas fields, Kunnar and Bobi, it is still facing litigation on the sale of LPG on signature bonus from the Bobi field," reveals the report submitted to National Assembly Standing Committee on Petroleum and Natural Resources.
According to the report, OGDCL earned Rs 217 million revenue through signature bonus by selling LPG from Kunnar field and Rs 125 million on account of sale of LPG from Bobil field. Total 15 cases were filed before the High Courts of Sindh, Balochistan and Lahore (Rawalpindi bench) after OGDCL announced the cancellation of LPG quotas from Bobi field and decided to grant quota by an open bidding process on signature bonus. One case was dismissed in OGDCL''s favour by the Lahore High Court (Rawalpindi bench). "14 cases are yet to be argued on merit and adjudicated. OGDCL''s Corporate Legal Services and Commercial Departments are ensuring regular follow up of these cases under the guidance of outside legal counsel(s)," OGDCL authorities say in a report.
The Board of Directors of OGDCL in its 101st meeting held on February 26, 2009 had resolved that OGDCL might dispose off its LPG produced at Bobi and Kunnar fields through an open bidding on the basis of signature bonus. In compliance with the Board''s resolution and to regularise the temporary allocation from Bobi and Kunnar fields, OGDCL initiated the open tendering process for awarding the LPG supply from these fields on signature bonus in August, 2009.
One day prior to the submission/opening of the bids, out of fifteen, two companies who had been availing the temporary allocation of LPG from Bobi field since 2004, obtained an injunction order on 29th September 2009 from the Sindh High Court thereby restraining OGDCL from opening the bids.
However, subsequently in December 2009, OGDCL''s legal counsel succeeded in amending the injunctive order of 29th September 2009 to open the bids on the condition that OGDCL would preserve the temporary quota of the existing marketing companies till the final adjudication of the matter by the court.
Other temporary quota holding companies also followed the litigation course more or less on similar grounds in the Courts of Sindh, Balochistan and Lahore. In the light of the court order of December 2009, OGDCL opened the bids and created third party rights for five new marketing companies, which are now availing LPG quota from Bobi field on signature bonus, while accommodating the earlier temporary quota holder companies, which are also in litigation with OGDCL.