The Prime Minister’s Office (PMO) and the Khyber Pakhtunkhwa government have sought clarification from the Petroleum Division on the sale of gas from a gas field in Kohat without competitive bidding.
Sources said that the Prime Minister’s Office had issued the said directive on January 2 on the sale of gas to a third party without competitive bidding by the minority shareholder of Razgir field.
However, the Petroleum Division has not responded to the Prime Minister’s Office so far.
The Khyber Pakhtunkhwa Directorate General of Petroleum Concessions (DGPC) also reminded the division that it has the authority to decide on such sales under the Petroleum Policy 2012.
Directorate General PC Mian Naseem Javed said that the procedure adopted by the shareholder is against the decision of the Council of Common Interests.
The Council of Common Interests has set up a competitive process for the sale of gas to third parties and has protected provincial rights in an agreement under Article 158 of the Constitution.
Mian Naseem Javed said that the Pakhtunkhwa government will not accept any violation of Article 158 and any decision of the CCI.
Earlier this month, the gas production company (MOL Pakistan), which is the operator of the gas field and a 10% shareholder, informed its partners about the sale of the gas to a private company (Universal Gas Distribution Company).
Another private joint venture partner, Pakistan Oil Fields Limited (POL), has a 25% stake in the gas field.
