ISLAMABAD – Pakistan Oilfields Limited (POL), a 25% shareholder in the Kohat-based Razgir gas field, has opposed a proposed gas sale agreement between a Hungarian gas company and a private firm.
POL, a joint venture partner, raised its objections in a letter to the Petroleum Division and other stakeholders.
The Razgir field is majority-owned by state-owned entities (SOEs), which hold a 65% stake.
POL argued that the Hungarian company, which owns a 10% share and operates the field, cannot unilaterally finalize a gas sale deal without a competitive bidding process. This, POL contends, would undermine transparency in the transaction, Geo News reported, citing sources.
The operator is reportedly negotiating the sale of 35 million cubic feet of gas per day to a private firm. This arrangement has aggrieved POL, a subsidiary of a UK-based oil company, as it bypasses standard bidding protocols.
Experts noted that the Hungarian firm is already supplying 14 million cubic feet of gas daily to the same private company from its Mamikhel field without following due procedures.
The private firm reportedly uses Sui Northern Gas Pipelines Limited’s (SNGPL) distribution network to supply gas to clients in Punjab. Experts emphasized that such deals violate Public Procurement Regulatory Authority (PPRA) rules and urged an investigation into earlier agreements between the Hungarian operator and the private gas company.
The experts further stressed that agreements for resources from government-partnered fields, like Razgir, must adhere to legal processes, including competitive bidding. Without this, they said, such deals lack legal standing and transparency.
