SSGC issues Letter of Comfort to JJVL | Pakistan Today

SSGC issues Letter of Comfort to JJVL

ISLAMABAD – The Sui Southern Gas Company Limited (SSGC), on Friday, issued a Letter of Comfort to Jamshoro Joint Venture Limited (JJVL) following directions of the Sindh High Court (SHC) and the National Assembly Standing Committee on Petroleum. In a related development, British Petroleum Pakistan (BPP) extended the Gas Sales Agreement (GSA) for Badin block from February 03, 2011 to August 3, 2011 and assured that all parties would conclude a fresh composite GSA within the specified time.
The comfort letter, issued by SSGC Company Secretary Yusuf J Ansari to JJVL Chief Executive Iqbal Z Ahmed, said that gas supply from Badin block would continue on the same terms and conditions as per the Implementation Agreement (IA) executed between SSGC and JJVL on August 12, 2003. Gas supplies would continue till the High Court and competent authorities issue further directives.
A letter, issued by BPP President Tariq Khamisani to SSGC on February 1, 2011, informed about the extension in GSA for Badin block, saying that GSA terms were valid till February 3, 2011. During various meetings between representatives of SSGC and BPP, to conclude a new consolidated GSA, it was acknowledged that extension of the agreement term is in the parties’ common interests.
Accordingly, the parties confirmed that the term of GSA shall stand extended for the period February 3 to August 3, 2011 or full execution of a side letter or definitive composite GSA, which ever occurs earlier. All other terms and conditions of the GSA shall continue in full force and effect, without any change.

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