Senate Demands 20 Years of Oil and Gas Royalty Payment Records

Pakistan's Senate Petroleum Committee has demanded 20 years of records detailing royalties paid by oil and gas exploration firms to provincial governments, raising questions concerning revenue transparency and whether communities in production areas are receiving their fair share.

Key points

• Senator Qurat-ul-Ain Marri criticized Sui Southern Gas Firm (SSGC) for failing to consult elected representatives concerning a proposed pipeline connecting 31 villages near the Gobi field.
• Dharejo expressed dissatisfaction with figures provided by Oil and Gas Development Firm Limited (OGDCL).
• A DGPC official informed the committee that royalty payments are deposited into a federal account at the National Bank of Pakistan.
• The committee additionally called on local residents to receive preference in nontechnical jobs at oil and gas exploration projects in Tando Allahyar.
• The official additionally promised a detailed review of royalty payments produced over the past 15 years.

For context, the committee's subcommittee, chaired by Senator Jam Saifullah Dharejo, directed the Petroleum Ministry and Sindh's finance and energy departments to submit detailed payment records at its next session. Senate Questions OGDCL Royalty Records.

Dharejo expressed dissatisfaction with figures provided by Oil and Gas Development Firm Limited (OGDCL). It covered only 10 years and did not link royalty payments with production volumes. When the firm began operations, he demanded annual production and royalty records dating back to 1995. Urea Rates Rise Again as FFC Announces Fresh Hikes.

Notably, the committee additionally questioned OGDCL's exemption from production bonuses. The firm stated the exemption applied to certain fields developed between 1990 and 1993. Nevertheless, a representative of the Directorate General of Petroleum Concessions (DGPC) stated it was limited to the Sinjhoro Block in Sanghar under a 1997 concession agreement. Authorities Explain How Royalty Payments Reach Provinces.

Meanwhile, a DGPC official informed the committee that royalty payments are deposited into a federal account at the National Bank of Pakistan. The Finance Division deducts 2 percent in collection charges before transferring the provincial shares within 15 days.

In practice, the official additionally promised a detailed review of royalty payments produced over the past 15 years.

Dharejo remarked production bonuses could assist finance schools, hospitals and other public facilities in areas affected by oil and gas extraction. He stressed that local communities should benefit from the natural resources extracted from their regions. Petrol Cost Plunges to 2-Month Low. Committee Raises Local Employment and Gas Pipeline Problems.

For context, the committee additionally called on local residents to receive preference in nontechnical jobs at oil and gas exploration projects in Tando Allahyar. It asked the Petroleum Ministry to clarify whether existing regulations require firms to reserve a specific share of employment opportunities for local residents.

Meanwhile, Senator Qurat-ul-Ain Marri criticized Sui Southern Gas Firm (SSGC) for failing to consult elected representatives concerning a proposed pipeline connecting 31 villages near the Gobi field. SSGC's managing director informed the committee that the project was awaiting federal funding.

Meanwhile, the committee additionally received a briefing on LPG adulteration. The Oil and Gas Regulatory Authority (OGRA) documented that an operation in Pano Akil uncovered illegal carbon dioxide installations. It were sealed along with the confiscation of storage tanks. Stay Connected with ProPakistani.

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