279 villages in Ghotki fall within OGDCL and Mari Petroleum areas

OGDCL’s financial contributions to development projects in Ghotki are still pending, while around 120 villages in its operational area

Karachi / Islamabad: OGDCL’s financial contributions to development projects in Ghotki are still pending, while around 120 villages in its operational area are waiting for better facilities, a Senate panel was informed. The committee has also sought details of royalty payments, production bonuses and exemptions involving OGDCL, including records covering the last 10 to 15 years.

The questions have raised concerns about whether communities living near the company’s oil and gas operations are receiving their fair share of the benefits from natural resources extracted from their areas.

During a meeting of the Sub Committee of the Senate Standing Committee on Petroleum in Karachi, Deputy Commissioner Ghotki informed members that OGDCL and Mari Petroleum were the major operating companies in the district. He said contributions from both companies were pending.

He also informed the committee that two phases of corporate social responsibility projects were underway, while the third phase had not yet started. Around 120 villages fall within OGDCL’s operational area, compared with 159 villages in Mari Petroleum’s area.

The committee directed officials to review village lists and identify deserving communities that may have been left out of gasification schemes. The convener stressed that no affected locality should be deprived of its due benefits.

The panel also sought detailed financial records from oil and gas companies, including OGDCL, to examine the collection and distribution of royalties and production bonuses. Chairman of the Directorate General of Petroleum Concessions, Dr Nawaz Ahmed Virk, informed the meeting that royalty is payable at 12.5 percent of well production.

The committee directed DGPC to provide records of royalties received from different companies during the last 10 to 15 years and the amounts transferred to provincial governments.

It also sought complete details of royalties, production bonuses and other payments received and transferred to DGPC. The panel specifically asked for details of exemptions granted in production bonuses, particularly in Sanghar and other oil fields, including those involving OGDCL.

The panel also directed the Sindh Energy and Finance Departments to attend its next meeting and explain how much royalty money was received from oil and gas companies, how much was allocated to districts and how much was actually released. The Petroleum Ministry was asked to provide details of payments received from companies under different heads and their transfer to provincial governments.

Concerns were also raised over gasification plans in areas near OGDCL operations. MNA Zulfiqar Sattar Bachani demanded a priority survey of villages located within five kilometres of UEP and OGDCL operational areas in Tando Allah Yar to determine their eligibility for gas connections.

Senator Qurat-ul-Ain Marri said companies were earning billions of rupees annually from natural resources extracted in Sindh, but local people were not receiving benefits equal to the wealth being generated. She also pointed out that proposed village lists had been finalised without consulting local elected representatives.

The committee stressed that local communities must receive benefits through gas facilities, jobs, training programmes and development projects.

The Petroleum Ministry informed the panel that local residents were given preference for non technical jobs. Local candidates could also be considered for technical positions after receiving proper training.

The convener said operating companies, including OGDCL, must provide meaningful employment opportunities to local people and arrange technical training so young residents can qualify for skilled jobs.

The committee also examined OGDCL’s role in repairing the Ghotki to Qadirpur Road and establishing a vocational training school in Ghotki.

OGDCL’s General Manager for Corporate Social Responsibility, Sikandar Ali Sheikh, informed the meeting that a survey of the road had been completed. He said a consultant would be engaged to prepare the PC I, after which the estimated cost would be submitted to the competent OGDCL forum for approval.

He assured the committee that road repair work would begin shortly. He also said OGDCL would coordinate with the Deputy Commissioner Ghotki for the construction of a modern vocational training school.

The Deputy Commissioner informed the committee that suitable land was available and could be allocated for the proposed school.

The meeting was chaired by Senator Jam Saifullah Khan Dharejo at SSGC Headquarters in Karachi. The convener directed all concerned departments and companies to provide the required financial records, implement the decisions and coordinate with elected representatives and district administrations before the next meeting.