Islamabad (6th July, 2020) In view of media reporting based on incomplete information regarding payment of land rent by Oil & Gas Development Company Limited (OGDCL) to the landowners at Uch Gas Field, it is necessary to place a record the factual position to avoid unnecessary speculation, hype and ambiguity. The actual facts and circumstances are as follow.
OGDCL’s Uch Gas Field in Dera Bugti is one of the major fields with average daily production of 330 mmscf generating annual revenue of Rs. 28 billion through sale of gas. The field contributes 1/3rd of the total gas production of the company. Uch Gas Field is a strategic asset and plays significant role in mitigating country’s energy demand.
Company installations include thirty one wells, plant & allied facilities, offices and residential enclave. The field is situated in a security sensitive area. In order to ensure uninterrupted and optimum operations, OGDCL has deployed elaborate security setup.
Under an arrangement agreed with late Nawab Akbar Khan Bugti, OGDCL initially in the year 1995 obtained 730 acres which was subsequently enhanced to 1325 acres land. In view of security situation finally increased to 4300 acres in the year 2001. Out of the said 4300 acres family of Late Nawab Akbar Khan Bugti owns 3204 acres. OGDCL is required to pay rent on leased land with yearly escalation @ 12%. Ever since Company is making payment to the land owners as per the aforesaid arrangement.
In 2016 OGDCL initiated an internal exercise to review land requirement for its facilities and security cordon. Notices were issued for de-hiring a portion of land. The de-hiring however could not be implemented as OGDCL’s security contractor (FC Baluchistan) on account of law and order situation expressed reservations on relocation of security posts and also expressed inability to grant access to land owners for cultivation. OGDCL was advised not to de-hire under the prevailing circumstances. The aforesaid position was reiterated by the security contractor (FC Baluchistan) in January, 2020.
The previous agreement between the parties expired in December 2017 and a renewal on usual terms was due in January, 2018 which could not be finalized. Meanwhile landowners approached the Federal Government for the redressal of their grievances. Land owners contended that OGDCL was not paying rent for the land under its use and that the actual numbers were significantly higher. Consequently, the land was measured on three occasions during the period 2019-2020. During the last measurement exercise conducted with the assistance of Geological Survey of Pakistan the area under the use of OGDCL and its security apparatus was indicated in excess of 27000 acres. OGDCL did not agree with the process and communicated its reservations on these numbers. Parties have nevertheless agreed that a new measurement exercise under the supervision of Federal Government in coordination with the concerned law enforcement agencies and district government will undertaken to finalize future requirement and lease agreements.
Since de-hiring initiated in 2016 was not implemented therefore it was decided that extension of lease from January 1, 2018 on usual terms would be made for 4300 acres and arrears would be cleared to avoid further controversy and escalation of dispute with the landowners.
OGDCL believes in peaceful coexistence with the local communities. Land owners and local tribesmen are OGDCL’s stakeholders. All disputes and points of disagreement will be resolved in a just and fair manner on the basis of mutual trust and respect.****issued by Babar Iftikhar Warriach, OGDCL,
