The Prime Minister’s Office (PMO) and the Khyber Pakhtunkhwa (KP) government have sought clarification from the Petroleum Division over reports of gas from the Razgir field in Kohat being sold to a private company without competitive bidding, Dawn reported.
According to sources, the PMO issued directives on January 2 following media reports that a minority shareholder of the field had negotiated a deal with a third party. The Petroleum Division has yet to respond to the PMO’s inquiry.
The KP Directorate General of Petroleum Concessions (DGPC) also raised concerns, emphasizing that the sale violated guidelines outlined in the Petroleum Policy 2012 and decisions by the Council of Common Interests (CCI). DGPC Director Mian Nasim Javed stated that the CCI had mandated competitive bidding and protection of provincial rights under Article 158 of the Constitution for such transactions.
The Razgir field, with a production capacity of 35mmcfd gas, is jointly owned by MOL-Pakistan (10%), Pakistan Oilfields Limited (POL) (25%), and three public entities: Pakistan Petroleum Limited (PPL) (30%), Oil & Gas Development Company Limited (OGDCL) (30%), and Government Holdings (Pvt) Limited (GHPL) (5%).
MOL-Pakistan, the operator, has proposed selling the gas to Universal Gas Distribution Company Ltd (UGDCL) through a negotiated agreement. The deal would provide UGDCL gas at a 16.5% premium over the Petroleum Policy 2012 price, with a 100% take-and-pay condition.
However, POL has objected, claiming the sale bypassed the competitive bidding process and excluded other shareholders from negotiations. POL has demanded transparency and adherence to CCI guidelines to avoid potential disputes.
UGDCL CEO Ghias Abdullah Paracha stated that the agreement builds on a prior deal with MOL-Pakistan for gas from the Mamikhel field. He claimed the company offered the highest premium for gas while adhering to stringent conditions, including advance payments, higher system loss coverage, and additional duties and taxes.
Paracha dismissed criticism from competitors, alleging that new market entrants were attempting to disrupt the sector. He reiterated UGDCL’s commitment to fulfilling its obligations under existing agreements.
