China Liaoning International Economic and Technical Co-operation Group Corporation (CLIC) has informed the Oil and Gas Development Company Limited (OGDCL) that it had revoked the Memorandum of Understanding (MoU) and joint venture agreement with Petrosin Engineering for Uch-11 and Kunnar Pasakhi Deep Development Projects (KPD). In a letter sent to OGDCL on April 6, CLIC said.
"We hereby invoke clause 5 of the Memorandum of Understanding (MoU) dated November 25, 2010 and Joint Venture Agreement (JV) dated November 20,2010 in respect of the subject projects (Uch-11 and KPD). Please note that since no contract has been signed between the client and the JV and as no further date has been agreed mutually, we hereby revoke the covenants and treat the MoU and JV as null and void".
In response OGDCL sought clarification from Director and Chief Representative CLIC-Pakistan Office. CLICs response to OGDCL on April 16 stated: "vide our letter dated March 16, 2011, we expressed our commitment as participation in bidding with Petrosin Engineering in accordance with the MoU and JV for KPD signed between the parties which were valid up till 31 March, 2011. Vide our letter No CLIC/Uch-11/326 dated April 06, 2011, we have invoked clause 5 of the MoU of Uch-11 & JV agreement of KPD projects as it expires and became null and void w.e.f 1st April 2011".
When contacted spokesman for OGDCL, Bisharat Mirza, confirmed that OGDCL management had sought clarification from Chinese Embassy and Chief Representative CLIC-Pakistan Office about a letter received on April 6. "We have received a response from Chief Representative CLIC-Pakistan Office who has confirmed that CLIC has invoked clause 5 of the MOU of the Uch-11 and JV agreement of KPD projects that had become null and void with effect from April 1, 2011."