Major revamp in oil and gas sector, all MDs sacked

ISLAMABAD – As the energy crisis in the country continues to worsen, the government finally decided on Sunday to revamp the oil and gas sector by sacking all managing directors of various companies operating under the Ministry of Petroleum and Natural Resources.
This, among a number of other decisions, was taken at a meeting between Prime Minister Yousaf Raza Gilani and Senator Dr Asim Hussain, who was appointed Adviser to the Prime Minister on Petroleum earlier on Sunday night. According to Presidential Spokesman Farhatullah Babar, Hussain will have the status of a federal minister. It was also decided at the meeting that that new boards of directors of all the companies and institutions under the ministry would be reconstituted. The minister and secretary of petroleum will not be included in the new boards. Under the new policy, the government decided that no new gas connections would be issued in any part of the country for the next six months under any circumstances. Similarly, the Sui Northern and the Sui Southern Gas Companies would jointly form a Liquefied Petroleum Gas distribution company for the country. The meeting also decided that all officials in the Petroleum Ministry as well as the organisations and companies operating under it who had attained the age of 60 or were on contracts would retire with immediate effect. It was also decided that all court cases would be vigorously pursued to remove impediments and collect pending dues, as well as to resolve issues of exploration and distribution of oil and gas. The prime minister asked Hussain to take stern measures to ensure that the circular debt did not accumulate any further and was reduced substantially. He also asked the new adviser to rationalise the prices of petroleum products as soon as possible.
Gilani also ordered the Petroleum Ministry to completely revamp the oil and gas sector in a manner that helped develop proper coordination among all relevant institutions. The objective of this exercise, he said, was to expand production and ensure better distribution of oil and gas among consumers, including industries. Gilani told the ministry that in the long run, a hydrocarbon vision for the next 20 years should be developed, which should include exploration and proper utilisation of all natural resources, including Thar coal. He also ordered the ministry to prepare a two-year short term vision to develop the existing facilities further in the field of oil and gas to help resolve the current problems of the people.