MABAD - While resisting a move on the part of Sindh government to surrender four dormant fields to the province, OGDCL has formally conveyed that it would not hand over fields and asked to get gas at wellhead price in light of the decision of the Economic Coordination Committee (ECC) of the Cabinet.
Sources in OGDCL informed The Nation on Friday that OGDCL had formally conveyed that it will not surrender fields to Sindh government and only allocate gas for Sindh at wellhead price according to Petroleum concession agreement.
They were of the view that Sindh government was mounting pressure to surrender four dormant gas fields to the province but the OGDCL had refused so far to follow the demand and asked the former to pay wellhead price of hydrocarbon resources as per petroleum concession (PC) agreement in light of the decision of ECC.
Bisharat Mirza, the spokesman of the company while talking to this scribe confirmed that there was no decision to resolve this soaring issue to this effect while negotiations in this regards were under way. Last week a delegation from Sindh government met with the Managing Director of OGDCL where the company had put forwarded the companys concerns and reservations. He, however, said that rules and regulations would be strictly observed in this regards.
It is worthy to note that the ECC in its meeting, held in last week of January 2011, had decided that the gas from Nur, Bagla, Jakhro and Sara West fields would be allocated to Sindh government or its designated entity subject to the conditions that; (i) OGDCL will be paid according to petroleum concession agreement, (ii) policy price for gas as well as products i-e LPG and condensate, (iii) product disposal by the buyer, in accordance with the prevalent rules and regulation and (iv) all applicable taxes.
Meanwhile, OGDCLs Board of Directors (BoD) had reportedly decided to offer sale of hydrocarbon resources at four wellhead condensate gas fields to Sindh province turning down the plan to sell these four fields to private sector parties.
After decision of the ECC that clearly states that gas from dormant fields has been allocated to Sindh that has come up with a demand to hand over fields and wants OGDCL to make investment to develop these fields, sources said adding that OGDCL authorities clearly refused to accept any demand of Sindh government to this effect.
Sindh Province had written a letter to federal government that it had right to get fields especially after 18th amendment. Keeping in view of the situation emerged after Sindhs letter to federal government, OGDCL had scrapped tender which bids opening was scheduled on September 30, 2010, sources said.
Sources maintained that OGDCL board had also approved the reference price to sell hydrocarbon resources in light of Gas Purchase Agreement (GPA) inked with other exploration companies.
OGDCL and the Sindh government are reportedly at loggerheads, so far, over the fate of four dormant gas fields to the province even after the decision of the ECC of the cabinet. This soaring conflict have further raised questions over the fate of the decision of the ECC, OGDL BoD and the utilisation of the 18th amendment in the country regarding the exploitation of resources available in the provinces.