OGDCL has a lot on its plate

National Assembly legislative body on Friday showed its annoyance over irregularities in Oil and Gas Development Company Limited (OGDCL) and directed the MD OGDCL to give complete report in this regard during next meeting of the committee.
Meeting of National Assembly Sub-committee on petroleum and Natural resources held under the chair of convener Rana Afzaal Hussain to discuss and inquire loss of Rs 10.108 million due to negligence of M/s Enar Petrotech services in execution of the Kunnar LPG project. Committee said that the plant installed had not been operationalized then why money was spent over it while that amount has not been returned so far. Officials from Oil and Gas Development Company limited informed the committee that Miswal Kaswal plant was installed after the reports of gas exploration from the area but later it observed that gas reserves from the area are not sufficient therefore after necessary repairing this plant was shifted to Kunnar (Hyderabad). Officials told this plant was installed but not fully utilized therefore after some time this plant became dysfunctional so ten million spent for maintenance of the plant. This plant is now generating Rs 1.4 million, officials informed. Committee directed officials of Oil and Gas Regulatory Authority (OGRA) to give complete details pertaining to this matter.
To another item regarding procurement of defective man portable drill (short hole) 30 meters worth of Rs 49, 683 million Managing director OGDCL Bashart Mirza told the committee that in this project eight persons are involved and two among them approached the court and got stay order while three resigned and another two had resigned from their posts. MD said that one person is from low scale therefore authority decided to pardon him. Sub-committee showed its anger over the situation and inquired from MD that why you accepted resignations of those who are involved in corruption. Committee said that except holding inquiries authority facilitated them and let them go.
Committee said that authority did not take any action against responsible person which shows that MD is also involved in this corruption. Due to its nature this case should be handed over to NAB, Committee directed the MD OGDCL to give complete details of those eight persons who are involved in this scam during next meeting and also to give explanation that why necessary action has not been taken in this regard.
Massod Siddiqui new OGDCL chief: Federal Government has decided to appoint Masood Siddiqui as new head of Oil and Gas Development Company Limited (OGDC). Notification would be issued in this regard soon. According to reliable sources, ministry of petroleum had submitted a summary to the prime minister suggesting names of three officers for appointment as full-time managing director of the OGDC.
The nominees included Masood Siddiqui, a former chief executive of Premier Kufpec Pakistan, Shahbaz Khan, a director at Hungarian MOL Pakistan and Riaz Khan, an executive at the OGDC. Sources said that due to Siddiqui’s vast experience in the oil and gas exploration sector as head of a multinational company Prime Minister Yousaf Raza Gilani in consultation with Petroleum Minister Dr Asim Hussain has decided to appoint him as MD OGDCL. He said Mr Siddiqui was the petroleum ministry’s top choice because of his experience in the oil and gas exploration sector as head of a multinational company. He has also been associated with ENI-Pakistan as a senior executive.
The post of managing director of the country’s largest oil and gas producer had been lying vacant for more than six months now following the resignation of Naeem Malik who opted to join the ministry of petroleum as the additional secretary instead of continuing as the OGDC chief executive. Since then, Mr Basharat Mirza – an executive director at the OGDC – has been officiating as the acting managing director.
Naeem Malik took over as the managing director of OGDC following a controversial appointment of Adnan Khwaja as the managing director. The appointment was cancelled by the Supreme Court because of his dubious educational qualification and involvement in a corruption case and subsequently becoming a beneficiary of the controversial National Reconciliation Ordinance.
Additional 160 MMcfd per day gas supply from Uch field by Feb 2014: An additional 160 MMcfd per day of gas supply from Uch gas field is likely to be available for 25 years to a new power producer by February 2014.
According to OGDCL sources, after a thorough study the Oil and Gas Development Company Limited (OGDCL) adopted a development plan to enhance the gas production at the Uch gas field from 220 to 380 MMscfd per day, enabling it to commit 160 MMscfd per day of gas for 25 years to a new power producer. An Engineering Consultant has been engaged to prepare the design and tender documents. This project involves drilling of 15 additional development wells, installation of a gas gathering facility and installation of dehydration and hydrogen sulphide, (H2S), removal plant and gas delivery station.
So far 14 development wells have been drilled. Gas Sales Agreement (GSA) with the UPL has been signed. It may be mentioned here that the Uch gas field is located about 67 km southeast of Dera Bugti in Balochistan province. The field was discovered in 1955 by Pakistan Petroleum Limited; however, it was not developed because of its low BTU content.
The OGDCL reactivated the Uch gas field in the 1980s.
To date the company has drilled 15 wells and is currently supplying 220 to 225 MMscfd per day to Uch Power Limited via a 47 km pipeline at the first mega low heating value gas fired 586 MW power plant.