OGDCL, PPL spend Rs 9.7 bln on welfare schemes

ISLAMABAD, Aug 24 (APP): Oil and Gas Development Company
Limited (OGDCL) and Pakistan Petroleum Limited (PPL) have spent over
Rs 9.7 billion on social welfare schemes in respective operational areas during the last six years.
“Although, there is no provision in Petroleum Concession Agreements,
policies and rules that E&P companies will spend a specified amount of
income on development of their operational areas, but OGDCL and PPL have spent an amount of Rs 4,928 million and 4,784 million respectively during the period from January 1, 2012 to June 30, 2017 on social welfare schemes,” official sources told APP Thursday.
Answering a question, they said the government had recovered
outstanding payments amounting to Rs 4.7 billion from different oil and gas
Exploration and Production (E&P) companies on account of production
bonus, social welfare funds and marine research fee during the last four
In a bid to restore confidence of locals in exploration activity areas, the Petroleum
division recovered Rs 1639.23 million production bonus, Rs 1988.25 million social
welfare funds and Rs 1100.51 million marine research fee from the E&P companies.
“An amount of Rs 4727.99 million has been recovered and deposited
in accounts of concerned DCOs of oil and gas producing districts for carrying out welfare
schemes for locals,” they said.
Facilities like health, education, water supply, improved drainage and
sewerage system are provided to locals in oil and gas producing Tehsils and
Districts across the country, the sources said.
The Division has recently revised the social welfare guidelines, under
which welfare schemes would be based on the requirement of areas and
identified by concerned MNAs of districts in consultation with representatives of local
bodies or local administration.
They informed that E&P companies would open a joint bank account
with District Coordination Officers (DCOs) and Deputy Commissioners (DCs)
concerned and deposit the social welfare contribution fund within one month
of signing Petroleum Concession Agreement (PCA) and subsequently by
January 31 every year.
“The DCOs/Dcs and E&P companies will sign cheques within a week
after receiving complete requisition from the concerned agency,” they said
adding that MNAs and other concerned would get input of locals in welfare
schemes, make publicity of development projects and ensure their timely
completion besides holding public hearings in project areas.
The sources said the companies would provide audit certificate
annually from their statutory auditors that the due amount of social welfare
obligation had been discharged by transferring to the joint account as per
PCA and social welfare guidelines.
The sources said provincial governments would send a report in
respect of completed schemes to Federal and Provincial Ombudsmen and the
Human Rights Cell of Supreme Court twice in a year – by end of July and
January each year.
On completion of the work, a prescribed ‘completion certificate’ would
be issued by concerned DCOs/Dcs within 30 days, while annual progress
report of the previous calendar would be forwarded to the Ministry by March