Ogra awards $370 million oil pipeline contract to FOC

In violation of the rules laid down by ECC which clearly state any oil pipeline project has to ratified by the federal cabinet, OGRA awarded the licence to Frontier Oil Company


ISLAMABAD: Without due approval of the federal cabinet, the Oil and Gas Regulatory Authority (Ogra) awarded the licence to Frontier Oil Company (FOC) for laying an oil pipeline from Machike (Sheikhpura) to Tarujabba (Nowshera).

The awarding of this licence to FCO is in violation of the decision approved by the Economic Coordination Committee (ECC) during a meeting in April decided all forthcoming proposals for every oil pipeline project be forwarded to the federal cabinet for vetting and approval, reported Express Tribune.

According to ECC’s decision, the FCO setup by Frontier Works Organisation (FWO) for managing the oil pipeline project would have to reach out to the federal cabinet with its project plan for the go-ahead.

But in violation of ECC’s decision, Ogra awarded the licence to Frontier Oil Pipeline for laying the pipeline on the very same route, the federal government had conferred to state-owned Inter-State Gas Systems (ISGS).

In a public hearing conducted by Ogra, ISGS appeared as the aggrieved party. FWO during the hearing said it wanted to construct the pipeline from Machike to Tarujabba at a projected cost of $370 million, which the KP government described as cheap.

On the contrary, a government official said the ECC had approved the pipeline at a cost of $280 million, $90 million less than the projection provided by FWO, which was supposed to be built by ISGS.

The ISGS officials voiced reservations over the awarding of the licence to FOC on the route that had already been given go-ahead by the federal government to the former.

Moreover, the ISGS officials highlighted the feasibility, financial and technical studies were conducted by the FOC themselves was tantamount to a conflict of interest.

And ISGS officials argued the Ogra registrar had not followed laid down legal procedures since it needed to demand the applicant to give policy guidelines of the federal government related to the project.

The registrar rebuffed the obligation and accepted the application of FOC, the officials contended.



  1. Mobin Saulat (ex employee of McDonalds UK) who is MD ISGS was appointed by corruption specialist Dr Asim in 2011 when he was not eligible for that post, and as per agreement between PPP and PMLN, he was not changed by Shahid Khaqan Abbasi to carry on corrupt malpractices in gas sector.
    He is a person who spent millions of dollars on Iran Pakistan project but dumped it on orders of shahid khaqan and nawaz sharif and parked all cost to general public thru sui gas revenue requirements and GHPL loan investment.
    He is MD for last 7 years and has not been able to lay even a single inch of pipeline in IP and TAPI projects awarded to ISGS. He is non technical person and just keeps himself involved to ditch ISGS employees for his survival. For this purpose, he hired incompetent, inexperienced Manager HR named shabana shabnum in 2011 who is now in GHPL on special favour as Mobin is also Acting MD of GHPL and commits abuse of powers continuously. He also hired Legal head Aurangezeb Mehmood who have destroyed employee system of the company.Aurangzeb is company secretary of ISGS too.

    On directions of Abbasi, Mobin is now terminating regular permanent employees of the company illegally. His legal advisors are Kundi & Kundi, Kundi & Misbah who are known mafias on lawyers forum to get the decisions changed with their cash based influence. He is inducting contract employees who bow down in front of him to execute any illegal act pertaining to LNG and oil pipeline etc.

    Now, as far as project of FOC is concerned, in 2015, oil crises begun when oil tanker mafia strikes took place. In that case oil required by strategic institutes including Defence departments became short at the alarming position of 3 days remaining stock. Defence departments suggested to lay down a pipeline to eliminate tanker mafia’s strike factor and planned to construct oil pipeline in 2015. FWO and FOC started their proper working with the involvement of government in 2015. Here the malafidy of nawaz sharif with his anti pakarmy sentiments aroused and he ordered abbasi to sabotage this project. Mobin was then made acting MD of GHPL for this purpose. Its quite astonishing that a person was made MD of the company which is parent company of Mobin led ISGS. The mobinization (ability to dump any project) of the oil pipeline project was led by abbasi using shoulders of isgs puppet mobin saulat. Saulat, a castrated soldier of abbasi, who is also being inquired by NAB on LNG corruption, is also a known part of tanker mafia. Nawaz through saulat has tride to dominate army over oil supply matters and changed the route from motorway to GT road. Clearly, the bad intentions of PMLN.

    Clearly, FOC abides by the rules but, ISGS uses ECC forum instead of CCI and ECC is not allowed to intervene in matters related to oil and gas policies as stipulated in article 154 of the constitition. Besides, ISGS also violates OGRA laws/rules.

  2. saulat was a used condom of dr asim which was reused by khaqan abbasi on LNG.inexperienced and looting machine.zero projects.


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