ISLAMABAD: The Prime Minister’s Office (PMO) and the Khyber Pakhtunkhwa (KP) government have sought clarification from the Petroleum Division regarding the proposed sale of gas from the Razgir field in Kohat without a competitive bidding process.
This directive was issued by the PMO on January 2 following reports that a minority shareholder in the newly developed field had negotiated a gas sale agreement with a third party, bypassing open bidding protocols. Despite reminders, the Petroleum Division has yet to respond.
KP’s Directorate General of Petroleum Concessions (DGPC) has also emphasized its authority to oversee such sales under the Petroleum Policy, 2012. DGPC Director Mian Nasim Javed criticized the move, stating it violates the Council of Common Interests (CCI) directive mandating competitive bidding and protecting provincial rights under Article 158.
MOL-Pakistan, a 10% shareholder and operator of the field, has reportedly finalized a deal with Universal Gas Distribution Company Ltd (UGDCL) for 35mmcfd gas, offering a 16.5% premium over the 2012 policy price. However, Pakistan Oilfields Limited (POL), holding 25% stakes, has raised objections, asserting that the sale of a resource primarily owned by public entities (65%) requires an open bidding process to ensure transparency.
POL further alleged being excluded from the negotiation process, prompting its demand for competitive bidding to determine the buyer and price.
The deal, if approved, would allow UGDCL to sell gas to private customers, including CNG stations, via the Sui Northern Gas Pipelines Limited network on payment of wheeling charges.
UGDCL CEO Ghias Abdullah Paracha defended the agreement, claiming it adheres to a 2023 contract and offers unprecedented benefits, including advance payments and compensation for system losses. However, POL has argued the transaction’s legality and market fairness remain in question.
Repeated attempts to contact Petroleum Minister Musadik Malik, Petroleum Secretary Momin Agha, and executives from OGDCL, PPL, and GHPL yielded no response. MOL-Pakistan also declined to comment.
Story by Khaleeq Kiani
