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Petroleum Division removes DGPC, decides repatriation of other companies’ officers

Petroleum Division removes DGPC, decides repatriation of other companies’ officers

ISLAMABAD: Petroleum Division has swung into action and removed Director General Petroleum Concession (DGPC) Imran Ahmed besides ordering repatriation of the officers of the companies/attached departments to their parent department/organization within a period of three months.
Interestingly, after NAB’s action against DGPC Imran Ahmed and other officers for causing around $ 50 million loss to national exchequer, the petroleum division has decided to repatriate various officers of companies/attached organizations working in policy wings of its Directorate Generals from last many years.
Sources privy to the matter informed Customs Today that Hassan Mehmood of Mari Petroleum has been removed from the position of Petroleum Economist. They said that Hassan Mehmood was obtaining heavy package from Mari Petroleum and he was posted in Petroleum House to fulfil certain official matters including preparation of summaries for the federal cabinet’s economic coordination committee (ECC). They said Hassan Mehmood had made foreign tours on the funds of companies in the name of training. Posting of an officer of Mari Petroleum (an exploration & production company) in the Directorate General of Petroleum Concession was a great example of conflict of interest, said sources.
They added that petroleum division has also decided repatriation of employees of PARCO, PSO, SNGPL, SSGCL etc who were working with various departments of petroleum division illegally and filling of vacant slots as early as possible.
According to sources DGPC Imran Ahmed has been removed from the senior position and Joint Secretary, Saira Najeeb Ahmad has assumed acting charge of the post of DGPC. They said that the petroleum division has taken action following the initiation of inquiry by National Accountability Bureau (NAB) against DGPC Imran Ahmed who is allegedly involved in a scandal worth $ 50 million loss to national exchequer for creating hurdles in the production of local gas from Badin IV South Gas Fields for approximately eight months. And, due to eight months delay in injecting 30 Million Cubic Feet per Day (MMCFD) gas of Badin IV South Gas Fields into the country’s gas transmission system, expansive Liquefied Natural Gas (LNG) was imported at $10 dollar to meet gas demand while cost of local gas was $ 4/MMBTU during the said period. The Petroleum Division has swung into action after the initiation of NAB inquiry against the DGPC and other officers of petroleum division, said sources.
Official Spokesman of Petroleum Division, Sajid Mehmood Qazi in a correspondence with this scribe confirmed the removal of Imran Ahmed and informed that now the charge has been given to Ms Saira Najeeb JS BS 20.
Documents available with Customs Today also transpires that NAB has been conducting inquiry against DGPC for allegedly causing loss to national exchequer due to delay in injecting 30 Million Cubic Feet per Day (MMCFD) gas of Badin IV South Gas Fields into the country’s gas transmission system. And, , NAB, in a letter to DGPC of Ministry of Energy (Petroleum Division) dated 19th March, 2020, has raised 25 questions and asked him to submit documentary evidence under the provisions of Section 19 and 27 of National Accountability Ordinance, 1999 till 6th April, 2020 for logical conclusion of the inquiry. Similarly, NAB asked to provide verified copies related to the recommendations of Secretary Mian Asad Haya Uddin , DGPC Imran Ahmed, former consultant Ishaq Saki, and other officials regarding gas production from Badin IV South Gas Fields.
DGPC allegedly involved in facilitating LNG import at the cost of national exchequer,” said sources.
They added that after the deduction of all taxes, the price of local gas usually stands at $4/MMBTU while the government has been importing expensive Liquefied Natural Gas (LNG) which costs $10/MMBTU and has paid around $50 million from its foreign reserves.
It is relevant to note that that Badin IV South Gas Fields was ready to produce and inject 30 MMCFD of high-quality gas into the SSGCL (Sui Southern Gas Company Limited) system in June 2019, while IPR International Energy Group had inspected the gas field and declared the field to be marginal in nature and recommended that the price should be $6.3/MMBTU in accordance with the Gas Pricing Criteria and Guidelines, 2013. However, DGPC raised objections to its report and asked the firm to inspect the field once again. The results were the same this time as well. However,the 30mmcfd high-quality was injected into the distribution system of the Sui Southern Gas Company Limited (SSGCL) in February 2020 without fixing the gas price for the Badin IV South Gas Fields in the name of national interest.

It is also learnt from sources that NAB has asked to provide correspondence between DGPC office and IPR over certification of fields in accordance with marginal policy and reasons/bases for disagreement with IPR and what steps are taken against IPR over dis-satisfaction on its report on Badin-IV South fields. They said that NAB has sought from DGPC to provide evidence regarding reasons for installation of “Amine Plant’ in Badin-IV South fields, correspondence between DGPC office and IPR over certification of fields in accordance with marginal policy, reasons/bases for disagreement with IPR and steps are taken against IPR over dis-satisfaction on its report on Badin-IV South fields and details of all payments to third party consultants in connection with Badin -IV South fields. They said NAB has asked to provide evidence regarding the measures taken by DGPC to enhance indigenous production of oil and gas between 2012 till June 2018 and the measures taken to mitigate depletion of indigenous production of oil & gas and enhancement in discoveries. Furthermore, NAB has sought to provide comparative chart of pricing ($ per MMBTU) paid to LNG and being paid to E&P companies striving for indigenous production of oil & gas by DGPC from 2012 till date, and the incentives which are being offered to E & P (Exploration and Production) companies striving for indigenous production of oil and gas by DGPC from 2012 till date while tell how many E&P companies are working in Pakistan for indigenous production of oil & gas by DGPC from 2013 till date and what are the outcomes/results?
Meanwhile, Petroleum Division has decided to repatriate the officers of companies/attached departments working on attachment basis in the Directorate General (Oil, Gas, PC, LGs, & SP) to their parent departments/organization within a period of three months.
“ Nevertheless, it is also requested that the repatriation process in respect of the officers of the companies/organization posted in the aforesaid Directorate General may be started immediately and executed within the stipulated time under intimation to this office, said a letter issued by Deputy Director (Admin), Khalid Mansoor.
The letter further discloses that the Secretary Petroleum Division has reviewed the sanctioned strength of the Policy Wing and directed that the vacant positions may be filled up on urgent basis and training/skill orientation program/s may be undertaken for the existing serving officers of the Policy Wing.

“The DGs may be asked to arrange or prepare skill orientation/training programs for the succeeding officers working in the respective Directorates General and also submit progress report to AS (P) accordingly,” reads the letter.
The Deputy Director (Admin), Khalid Mansoor has also asked for priority action in the matter and requested preparation and submission of proposals to competent authority for approval regarding training of the officers.
It is pertinent to mention here that the Exploration & Production (E & P) company, which had spudded the gas fields earlier, claimed additional premium of $0.25 per MMBTU for the gas of Badin IV South Gas Fields under the Marginal/Standard Gas Fields-Gas Pricing Criteria and Guidelines, 2013. However, DGPC refused to give said additional premium ($0.25 per MMBTU) to the E&P companies namely PEL, FHL of Canada and GPXP of Kuwait which have made $60 million investment in the block for production of gas. And, a third party who was earlier nominated by DGPC to examine the fields repeatedly informed that the gas fields were marginal in nature and recommended that price of gas for Badin IV South Gas Fields should be set in accordance with Marginal/Standard Gas Fields-Gas Pricing Criteria and Guidelines, 2013.
As per sources, NAB has sought from DGPC to provide complete TORs of DG PC, marginal/stranded gas fields-gas pricing criteria and guidelines, 2013 and asked what are the bases of award of marginal concession to fields as per Marginal Policy, 2013? Similarly, who laid down the condition of third party consultants for evaluation?
The anti-corruption watchdog (NAB) has also asked to tell who appointed / selected third party consultants Iike IPR and M/s AGR Tracs International etc and provide a complete list of third party consultants from 2003 till date along with their TORs etc. Likewise, how many local consultants within DGPC are available for evaluation of similar matters and provide their CVS mentioning qualification and experience and reasons for inclusion of third party consultants in presence of local consultants (If any).
The NAB has further asked to provide a chart showing evaluation of third party consultants from 2013 till date including remarks where dissent had been made by the office of DGPC (if any) and its final decisions contrary to the viewpoint of third party international consultants.

More, NAB has asked to provide the recommendations of Hassan Mahmood, Gul Munir, Asif Hafeez, Kashif, Qazi Saleem dated 28th May, 2019 and Mian Asad Haya Uddin dated 30th May, 2019 regarding inclusion of the past cost in matter of PEL on badin-IV South fields. And, subsequent approval of the Secretary for inclusion of past cost etc. who has dissented from its execution and on what basis? Also provide crucial points of international consultants for allowing past cost viz a vis dissent of local consultants. Material upon which both are relying may also be provided.
The sources further said that NAB has sought complete CV showing accreditation and qualification/experience of Ishaq Saki and Imran Ahmed in petroleum concession matters especially similar kind of work and complete job history of Ishaq Saki along with extension. Also, sought details of Ishaq Saki’s alleged wrongful extension. They said NAB has asked to provide reasons for delay in gas production from discoveries in Badin-IV South Block and tell how many notices were issued to the said company for timely accomplishment and what measures were taken by DGPC till date? Similarly, NAB asked when were the said fields ready for connection with the main network and when were they actually connected and reasons for delay and who is responsible for the said delay?, said sources.

It is also learnt from sources that NAB has asked to provide correspondence between DGPC office and IPR over certification of fields in accordance with marginal policy and reasons/bases for disagreement with IPR and what steps are taken against IPR over dis-satisfaction on its report on Badin-IV South fields. They said that NAB has sought from DGPC to provide evidence regarding reasons for installation of “Amine Plant’ in Badin-IV South fields, correspondence between DGPC office and IPR over certification of fields in accordance with marginal policy, reasons/bases for disagreement with IPR and steps are taken against IPR over dis-satisfaction on its report on Badin-IV South fields and details of all payments to third party consultants in connection with Badin -IV South fields. They said NAB has asked to provide evidence regarding the measures taken by DGPC to enhance indigineous production of oil and gas between 2012 till June 2018 and the measures taken to mitigate depletion of indiginous production of oil & gas and enhancement in discoveries. Furthermore, NAB has sought to provide comparative chart of pricing ($ per MMBTU) paid to LNG and being paid to E&P companies striving for indiginous production of oil & gas by DGPC from 2012 till date, and the incentives which are being offered to E & P (Exploration and Production) companies striving for indiginous production of oil and gas by DGPC from 2012 till date while tell how many E&P companies are working in Pakistan for indiginous production of oil & gas by DGPC from 2013 till date and what are the outcomes/results?

It is pertinent to mention here that NAB has also asked to present comparative chart of various benefits derived from E & P companies like royalty & CSR (Corporate Social Responsibility) etc as comparison with LNG and current status of award of blocks in area of Cholistan ( Bahawalpur/Bahawalnagar) etc to Dewan Petroleum (Pvt) Limited and reasons for stoppage, said sources.
Well-informed sources told Customs Today that Pakistan has allegedly suffered a loss of $50 million due to the “inefficiency and incompetence” of DPGC Imran Ahmed as the department (Directorate General Petroleum Concession) allegedly delayed the signing of an important agreement for more than six months after the discovery of 30MMCFD gas from Badin IV South Gas Fields. They said that the government has been importing expensive Liquefied Natural Gas (LNG) which costs $10/MMBTU (Million British Thermal Unit) and it (Government) has to pay around $50 million from its foreign reserves during the said period ostensibly due to shortage of gas in the country.
Sharing details of delay in injecting the gas of Badin IV South Gas Fields into the country’s main gas system, the sources said that the Exploration & Production (E & P) company, which had spudded the gas fields earlier, has claimed additional premium of $0.25 per MMBTU for the gas of Badin IV South Gas Fields under the Marginal/Standard Gas Fields-Gas Pricing Criteria and Guidelines, 2013. However, DGPC has so far refused to give said additional premium ($0.25 per MMBTU) to the E&P companies namely PEL, FHL of Canada and GPXP of Kuwait which have made $60 million investment in the block for production of gas. They said a third party who was earlier nominated by DGPC to examine the fields has repeatedly informed that the gas fields were marginal in nature and recommended that price of gas for Badin IV South Gas Fields should be set in accordance with Marginal/Standard Gas Fields-Gas Pricing Criteria and Guidelines, 2013.
“After the deduction of all taxes, the price of local gas usually stands at $4/MMBTU while the government has been importing expensive Liquefied Natural Gas (LNG) which costs $10/MMBTU and has paid around $50 million from its foreign reserves,”said sources.
It is relevant to note that that Badin IV South Gas Fields was ready to produce and inject 30 MMCFD of high-quality gas into the SSGCL (Sui Southern Gas Company Limited) system in June 2019, while IPR International Energy Group had inspected the gas field and declared the field to be marginal in nature and recommended that the price should be $6.3/MMBTU in accordance with the Gas Pricing Criteria and Guidelines, 2013. However, DGPC raised objections to its report and asked the firm to inspect the field once again. The results were the same this time as well. However, the 30mmcfd high-quality was injected into the distribution system of the Sui Southern Gas Company Limited (SSGCL) in February 2020 without fixing the gas price for the Badin IV South Gas Fields in the name of national interest.