The Oil and Gas Development Company LimitedOil and Gas Development Company Limited (OGDCL) has reached an agreement to disburse Rs12.6 billion to the Balochistan government as royalty for the Uch gas field.
According to officials from the CM secretariat, OGDCL and the Balochistan government have finalized a formula for royalty payments from August 2024 to January 2024, to be disbursed on a monthly basis.
The Balochistan government has been actively pursuing the receipt of royalties owed by OGDCL for the Uch gas field, which had been withheld since September 2021 due to abnormal increases in the revolving credit of power-buying companies.
Chief Minister Mir Ali Mardan Khan Domki has advocated for the province’s rightful royalty share at national forums, leading to OGDCL’s acceptance of the caretaker government’s stance and commitment to paying royalties due for the past three years.
CM Domki emphasized that royalty payments are essential for the welfare of the people of Balochistan and reiterated the province’s rights under the law.
The caretaker government’s efforts have secured pending royalty payments for three years, ensuring that companies operating in Balochistan fulfill their obligations in accordance with the law.
OGDCL has pledged to prioritize royalty payments to the Balochistan government, with a payment plan already formulated for this purpose.
