AHMAD AHMADANI ISLAMABAD - PSO and Kuwait Petroleum Corporation (KPC) have all set to ink agreement for the direct import of one million metric tons high-sulphur fuel for one year period that will cause annual saving of $ 3.3 million. The National Assembly Standing Committee on Petroleum and Natural Resources on Wednesday met under the chair MNA Sheikh Waqas Ahmad at Oil and Gas Development Company Limited (OGDCL) Secretariat. Managing Director (MD) Pakistan State Oil (PSO) Irfan K Qureshi while briefing the meeting said that negotiations have been completed to ink deal for direct import of 1 million metric tons fuel for one-year period. After signing of agreement will be able to directly import petroleum products from KPC and no trader will be involved in it, he said adding that PSO has been pursuing such deal with KPC for the last three years. Qureshi said that PSO would seek extension in proposed arrangement for fuel supply with KPC in future. Director General (DG) Oil Sabir said we have historical relation with KPC regarding fuel supply that is most transparent and competitive process. MD PSO has done a good job in this regard, Sabir Hussain added. NA body was informed that appointment of Colonel (Retd) Fazal Abbas in security department was legal as he was appointed against advertisement. Another official Javed Zubari had working experience of 30 years of sale and marketing as well as diesel and engine oil. He was required to complete revival plan of company and left company in December 31, 2010 after revival plan was completed. It has been reliably learned that the proposed arrangement would be continued on existing terms and conditions on 30 days deferred payment and PSO would pay a premium of $15.50 per ton to the market price. The company earlier paid $19 per ton premium. Sources further informed, PSOs sole reason to negotiate with KPC for such a contract is to have an economical and reliable source of supply and our end customers - power sector benefits from uninterrupted and economical furnace oil. Meanwhile, the National Assembly Standing Committee on Petroleum and Natural Resources expressed serious concerns over the appointment of Board of Directors at Pakistan State Oil (PSO), as the members qualifications were not up to the prescribed rules. The NA Committee on Oil and Gas that met with Waqas Ahmad Sheikh in the chair expressed grave concerns over the appointment of Board of Directors (BoD) on PSO board on recommendation of Petroleum Minister. Petroleum Ministry was directed to submit detailed process of nomination of directors. The committee also expressed resentment over the appointment of one board member from Multan to represent Punjab saying that it was a move to create confrontation between province and centre. PSO informed the NA body about the qualification of its BOD, which was not up to the defined qualification as well as rules and regulations were concerned. The Committee was not satisfactory over these appointments. It was also observed that most of the qualifications were on political grounds. The committee advised PSO to make transparency in its appointments of BoDs. It was also observed that the committee interested to hold a meeting with its BoD to judge their qualifications as it observed that PSO got various approval from its board to maximise personal benefits instead of PSO.