- Advertisement -
ISLAMABAD, Feb 24 (APP):The Senate Standing Committee on Petroleum on Monday called for a comprehensive report on gas extraction and development across various regions, detailing the number of drilling operations conducted and their respective time-frames.
Chaired by Senator Umer Farooq, the committee directed a thorough review of drilling activities and associated costs.
Committee members expressed concerns over the Oil and Gas Development Company Limited (OGDCL) cell’s failure to issue the production bonus, citing a violation of the Supreme Court’s ruling.
Officials informed the committee that OGDCL was not legally obligated to pay the production bonus.
However, members voiced serious reservations, noting that despite the Supreme Court’s intervention, the Ministry of Petroleum had yet to review the judgment.
Senator Umer Farooq highlighted that an upgrade for the matter had been approved on December 19, 2024, yet progress remained slow.
The Additional Secretary of the Petroleum Division assured the committee that the Supreme Court’s orders would be reviewed, and an appropriate course of action would be determined.
The committee was also briefed on financial and administrative irregularities, including inquiries conducted over the past
three years.
Officials reported the embezzlement of pipeline material at the Central Base Store (CBS) in Manga by company officials, leading to a financial loss of nearly Rs. 380 million. Upon inquiry, officials confirmed the reported losses. The committee was informed about the Bannu West project, where stolen civil materials resulted in an estimated loss of Rs. 5 million.
Further, embezzlement of scrapped industrial materials at CMS Lahore was reported, with approximately Rs. 28 million recovered.
The discussion also highlighted the deteriorating condition of pipelines, which are under immense pressure and at risk of bursting, exacerbated by the lack of adequate storage facilities.
Senator Umer Farooq called for additional details regarding the utilization of Corporate Social Responsibility (CSR) budget allocations and the operational costs exceeding budgeted amounts.
Referring to the committee’s recommendations from August 27, 2024, he raised serious concerns about the stalled Iran-Pakistan gas pipeline project.
He said that while numerous goods continue to arrive from Iran without facing sanctions, key development projects remain restricted.
Committee members also voiced concerns over the lack of transparency regarding the Board of Directors for petroleum companies.
They recommended seeking guidelines from the Ministry of Finance on board appointments and the selection process for Managing Directors.
Senator Umer Farooq further emphasized the absence of qualified candidates for key leadership positions and suggested that advertisements for the vacancies be shared with the committee.
The committee chairman underscored the urgent need for implementation and directed officials to report back with a clear timeline for progress. He also recommended summoning representatives from the Ministry of Finance for further clarification on critical matters.