PM’s office questions why report regarding alleged unauthorised third-party gas sale by Konnect Gas still not submitted 

Unlicensed Konnect Gas allegedly involved in unlawful sale of unprocessed gas to CNG stations since 2020. 

ISLAMABAD: The Petroleum Division has so far not submitted a report to the Prime Minister’s Office (PMO) regarding alleged sale of gas by Konnect Gas to CNG Stations since 2020 and PMO has now sent a reminder to the petroleum division in this regard.

The Prime Minister’s Office, in a most immediate letter dated 17th November, 2023 to the Secretary Petroleum Division, has asked to submit a comprehensive response without further delay regarding alleged un-authorized third-party gas sale by Konnect Gas to the Compressed Natural Gas (CNG) Stations since 2020.

Earlier, caretaker Prime Minister Anwar ul Haq Kakar took notice on the complaint of Transparency International Pakistan (TIP) regarding unauthorised third-party gas sale by Konnect Gas (Private) Limited to the CNG stations and PM’s Office on 16th October, 2023 directed the Petroleum Division to furnish comments regarding TIP complaint at the earliest.

However, despite passing more than one-month time, the petroleum division did not submit its response to the PMO and the PMO has now sent a reminder to the division (Petroleum) in this regard.

Following the PMO’s reminder, the Petroleum Division’s Director General Petroleum Concessions (DGPC) has moved to action and issued a notice dated 29th November, 2023 to the Chief Executive Officer (CEO), Spud Energy Pty Limited under Rule 68 (a) of Petroleum (Exploration and Production) Rules 1986 for illegal sale of natural gas by M/s Spud Energy Pty Ltd. from the Sara and Suri D&PLS to the unlicensed entity M/s Konnect Gas Pvt. Ltd (KGPL) and said that the response to the accusation regarding illegal sale of natural gas by SEPL as ‘unsatisfactory’ and once again instructed the company (SEPL) to immediately remedy the beach, pay all outstanding GoP (Government of Pakistan) statutory obligations without any further delay.

“If M/s SEPL fails to remedy the breach within stipulated time, further action will be initiated against the company in accordance with applicable PCA/Rules,” said DGPC notice to CEO of SEPL, a copy of which is available with Pakistan Today/Profit.

According to DGPC notice to CEO SEPL, M/s SEPL has not discharged royalty, area rental, training fund & social welfare obligations. M/s SEPL vide its letter dated 21st November, 2023, failed to discharge any amount of royalty, and area rental, as well as any outstanding amount of social welfare obligations

“M/s SEPL is avoiding to address the fulfillment of statutory obligations mentioned above, whereas company is obligated to pay all the GoP obligations. Moreover, M/s SEPL is required to carry out all operations in accordance with good oil industry practices and to obtain all necessary licenses/NOCs from relevant authorities, to have minimal impact on the environment, and to have due regard for safety and other factors. M/s SEPL is not addressing and operating in accordance with the principals of sound operations,” said DGPC notice to CEO SEPL, a copy of this notice was also forwarded to Chairman Oil and Gas Regulatory Authority (OGRA), Managing Director (MD) of Oil and Gas Development Company Limited (OGDCL) and others.

It is relevant to note here that Transparency International Pakistan (TIP), in a letter dated October 2, 2023, titled “Complaint on the Violation of Pakistan Petroleum (E&P) Rules 2001 and Natural Gas Regulatory (Licensing) Rules 2002 Due to Unauthorized Third-Party Gas Sale by Konnect Gas (Private) Limited, a subsidiary of Jura Corporation,” to Director General (DG) Petroleum Concession (PC), Ministry of Energy (Petroleum Division), requested to look into the allegations of the complaint and if found to be correct, take action against M/s Konnect Gas (Pvt.) Ltd for its illegal activities of providing unprocessed gas to CNG stations posing threat to the lives of citizens under applicable laws and rules.

It is pertinent to mention that the country’s largest state-owned Exploration and Production (E&P) company, Oil & Gas Development Company Limited (OGDCL), which is listed on all three Stock Exchanges of Pakistan as well as on the London Stock Exchange, while having a joint venture with SEPL in Sara & Suri gas fields has so far maintained silence regarding the illegal sale of gas by an unlicensed entity, KGPL.

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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