The federal government and provincial government of Khyber Pakhtunkhwa (KP) could not resolve the issue of alleged theft of crude oil from oilfield in district Karak due to non-co-operation of KP Police and MOL, a Hungarian oil and gas company, with the FIA.
Expressing his displeasure, Chairman National Assembly's Standing Committee on Petroleum and Natural Resources, Chaudhry Bilal Ahmed Virk said that the committee took up the issue of oil theft from MOL installation two years ago but could not reach any conclusion. The committee decided that National Accountability Bureau (NAB) should be called in during the next meeting for having its views on the matter.
Earlier, an official of the FIA told the committee that provincial police are non-cooperative with the investigation authority and theft cases of oil in Karak must be referred to NAB for a thorough investigation. He said that 75 FIRs were registered by the local police but no action was taken against the culprits.
Home Secretary Shakeel Qadir Khan informed the committee that a summary regarding theft from MOL system was referred to chief minister KPK. He said that it was KPK police who registered cases of oil theft from MOL system. However, now it is not a matter of theft but more than that. He said it is incurring financial losses to the national exchequer and causing reduction in royalty to the province.
The Secretary Home KP further argued that it is unfortunate that the provincial government has no knowledge about the type of agreement existing between MOL and the federal government as well as about the nature of licence issued to MOL in 1997. He further alleged that there was no meter installed on well heads to measure the production of oil and gas and supply to depots.
He said there has been serious law and order situation in Hangu and Karak districts for last two years and locals are protesting repeatedly against oil and gas companies. He said that due to shortage of police in the districts, local administration has asked for deployment of Frontier Constabulary (FC) to maintain the law and order in the two districts.
Responding to KP Home Secretary's allegation, directorate general petroleum concession, Ministry of Petroleum and Natural Resources, said that a multi-flow metering system has now been installed at production side of MOL and daily data is being shared with the government.
Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi while defending the operation of oil company in Karak said the KP government has nothing to do with the production of oil and gas there. He warned that the local administration of Karak should actively maintain the law and order in the district. He alleged that gas amounting to Rs 6 billion to Rs 8 billion is stolen annually in Karak and police have failed to stop the theft. He argued that share of MOL is only 8 percent and it is just an operator.
The minister further challenged the statement of another KP representative that Rs 171 million has been released to the SNGPL for supply of gas to Karak and Hangu. The minister said that no money had been deposited to the gas company. He said the company would receive Rs 108,000 per consumer and rest of the amount would be payable by the provincial government in case gas connections are provided in the areas. He said the SNGPL declined a proposal of the KP government that it would arrange loan from Bank of Khyber for the gas schemes as SNGPL would not take loan for gas schemes.
The minister further said it was obligation of provincial governments to spend at least 10 percent of its royalty to oil and gas producing districts. He suggested that 10 percent of royalty on production could be utilised for gasification of Karak and Hungu districts.
Pakistan Tehreek-e-Insaf MNA Sheheryar Afridi informed the committee that a local MPA obtained stay order against the gasification of Karak, which needed to look into. The Chairman Committee said it came to his knowledge that the amount of CRS and production bonuses for Karak and Hangu were spent for development in Nowshera. The Chairman Committee directed Ministry of Petroleum and Natural Resources and KP management to hold a meeting to resolve gas theft issue in Karak and Hungu. He also directed MOL management to become a part of the meeting.
MOL Group representative Ali Murtaza Abbas said, "MOL Pakistan is the victim in this issue, and it has itself highlighted the theft to police. We have installed a state-of-the-art fibre optic system with highly sensitive acoustic abilities, where any movement near or on the pipelines can be detected immediately."