A parliamentary panel on Monday raised concerns over the Oil and Gas Development Company Limited’s (OGDCL) failure to issue the production bonus and its non-compliance with a Supreme Court judgment.
The Senate Standing Committee on Petroleum was informed that OGDCL is not legally bound to pay the production bonus. However, committee members expressed reservations, noting that despite a Supreme Court ruling on the matter, the Ministry of Petroleum had yet to take necessary action.
Committee chairman Senator Umer Farooq highlighted that the matter was approved for review on December 19, 2024, yet progress remained sluggish. The additional secretary of the Petroleum Division assured the committee that the Supreme Court’s orders would be reviewed, and a plan would be formulated accordingly.
The committee also examined financial and administrative irregularities within the sector. Officials revealed that misappropriation of pipeline material at OGDCL’s Central Base Store (CBS) in Manga resulted in a financial loss of nearly Rs380 million. Similarly, the theft of civil materials from the Bannu West project led to a loss of Rs5 million, while Rs28 million worth of scrapped industrial materials was embezzled at CMS Lahore.
Senator Umer Farooq demanded a detailed breakdown of these financial discrepancies. Officials confirmed the reported losses and assured the committee of ongoing inquiries.
The committee was also briefed on the curtailment of indigenous gas production, attributed to Pakistan’s LNG agreement with Qatar, which mandates 10 cargo shipments per month. Officials warned that local gas fields were shutting down due to this arrangement.
Additionally, concerns were raised about aging pipelines, which are under immense pressure and risk bursting due to inadequate storage facilities.
Senator Farooq reiterated concerns over the stalled Iran-Pakistan gas pipeline project, questioning why development remains restricted by sanctions, while trade between the two nations continues.
Committee members also flagged concerns over unclear policies regarding the Board of Directors of petroleum companies and the appointment process for managing directors. They recommended seeking guidelines from the Ministry of Finance and reviewing the advertisement process for key posts.
The chairman directed officials to submit a timeline for resolving outstanding issues, including financial recoveries, production monitoring, and corporate social responsibility (CSR) allocations. He also called for representatives from the Ministry of Finance to clarify regulatory concerns.
The meeting, held at Parliament House, was attended by senators Quratulain Marri, Mir Dostain Khan Domki, Abdul Wasay, and Rana Mehmoodul Hassan, along with senior officials from the Petroleum Division and other relevant departments.