Khaqan rejects Imran’s allegation about NOC for exploration in KP

Says no NOC is pending or even required for exploration

Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi Tuesday categorically rejected Pakistan Tehrek-e-Insaf (PTI) Chief Imran Khan’s claim for not issuing a No-Objection Certificate (NOC) to Hycarbex American Energy Inc to undertake oil and gas exploration work in Khyber Pakhtunkhwa (KP).

Addressing a press conference, he said the PTI chairman’s claim had no reality that the federal government was not issuing NOC to gas companies which had identified six gas fields in KP.

The minister said: “The company representatives were called in at the DGPC office to discuss the issue claimed by the PIT chief. They have categorically stated that they have no complaints against the Ministry of Petroleum and Natural Resources as no NOC is required or pending with the federal government,” he added.

He said the company was granted exploration license on June 4, 2010 over Peshawar block located in districts Peshawar, Orakzai, Nowshera, Kohat, Hangu and Khyber Agency for an initial period of three years to make investment of $5.9 million.

Abbasi said that according to article 3.2 (b) of the petroleum concession agreement for the Peshawar block, the operator was bound to commence joint operation within 90 days, but the company had not initiated the work even after a lapse of more than five years.

“The company had not discharged even a single work unit and they had requested an extension in the exploration license without any cogent reason, a 60-day notice was issued to the company on September 18, 2015,” he added.

In the meantime, he said that management of the company changed pursuant to finalisation of the award of arbitration proceedings outside Pakistan.

Keeping in view the said issue, the ministry was considering the company’s request for extension of the exploration license to fulfill their contractual obligations, Abbasi said.

He said that despite the lapse of time, the government had not cancelled the license of the company due to dispute in its management. After the resolution of the disputes, the company was allowed to carry out its work, he added.

Shahid Khaqan Abbasi said that the company had failed to pay its Rs 81 million financial obligations to the federal government for training, area rent and social welfare.

To a question he said that notices were issued to 21 exploration companies for not carrying out the promised work in the petroleum sector, out of which 15 licences had been cancelled by the government till date for not following the signed agreement.

To another question, he said that despite repeated requests by the federal government, the KP government failed to address Rs 8 billion gas theft issue.

He said that the gas allocated for the power generation projects in KP had not been utilised till date by the KP government.

The minister said that Pakistan had signed the LNG import agreement with the Qatar government on a cheaper rate even as compared to India.

He said that work on the Iran-Pakistan gas pipeline project would start soon.