OGDCL Faces Scrutiny Over Alleged Illegal Gas Sales by Konnect Gas
OGDCL Faces Scrutiny Over Alleged Illegal Gas Sales by Konnect Gas

The Petroleum Division has yet to submit a report to the Prime Minister’s Office (PMO) on Konnect Gas’s alleged gas sales to CNG stations since 2020. The PMO has issued a reminder, urging an immediate and comprehensive response regarding the unauthorized third-party gas sales. Following a complaint by Transparency International Pakistan (TIP), caretaker Prime Minister Anwar ul Haq Kakar took notice in October 2023, instructing the Petroleum Division to address TIP’s concerns promptly.

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Despite the PMO’s directive, the Petroleum Division has not provided a response. In response to the reminder, the Division’s Director General Petroleum Concessions (DGPC) took action, issuing a notice on November 29, 2023, to the CEO of Spud Energy Pty Limited. The notice cited the illegal sale of natural gas by Spud Energy to unlicensed entity Konnect Gas Pvt. Ltd (KGPL). The response from Spud Energy was deemed ‘unsatisfactory,’ and the company was instructed to remedy the breach, settle outstanding obligations to the Government of Pakistan, and address statutory obligations without delay.

The notice outlined that M/s Spud Energy Pty Ltd had not fulfilled royalty, area rental, training fund, and social welfare obligations. In a letter dated November 21, 2023, Spud Energy failed to discharge any amounts related to royalty, area rental, or outstanding social welfare obligations. The DGPC emphasized that Spud Energy must fulfill statutory obligations, operate in accordance with industry practices, and obtain necessary licenses from relevant authorities.

If Spud Energy fails to address the breach within the stipulated time, further action will be initiated according to applicable rules. Transparency International Pakistan had raised concerns about the unauthorized third-party gas sale by Konnect Gas (Private) Limited, a subsidiary of Jura Corporation. The matter involves significant financial losses and poses a threat to citizens’ lives due to the provision of unprocessed gas to CNG stations. The Oil & Gas Development Company Limited (OGDCL), which has a joint venture with SEPL in Sara & Suri gas fields, has not commented on the illegal gas sales by KGPL.

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