Islamabad: The Senate Standing Committee on Petroleum on Thursday expressed serious concern over the non-implementation of the Federal Cabinet’s decision regarding the merger of ENAR Petrotech Services (Pvt.) Ltd. with Oil and Gas Development Company Limited (OGDCL) and non-payment of salaries to its employees for the last 22 months.
The committee meeting was held under the chairmanship of Senator Umer Farooq.
The committee questioned the delay in implementing the Federal Cabinet’s decision to merge ENAR Petrotech with OGDCL, noting that after a delay of nearly two years, the OGDCL Board had reportedly declared the merger un-viable.
The committee was informed that employees of ENAR Petrotech had not received their salaries for 22 months.
The chairman directed the concerned authorities to ensure payment of the outstanding salaries and submit details explaining the decision and process regarding the proposed privatization of ENAR Petrotech.
The committee also expressed concern over proposals to privatize the Pakistan Mineral Development Corporation (PMDC), observing that the organization was a profit-making entity and played an important role in the mining sector, particularly in Balochistan.
The committee reiterated its recommendation that the Federal Government should reconsider any move to privatize PMDC. The Director General, Explosives, briefed the committee on the issuance of L-Form licences and informed it that the licensing process had been digitized.
The chairman appreciated the digitization initiative and emphasized that licensing procedures should remain transparent and efficient without creating unnecessary hurdles for investment.
The committee deferred discussion on the profits of licensed OMCs and details of their actual beneficial ownership.
The Oil and Gas Regulatory Authority (OGRA), Securities and Exchange Commission of Pakistan (SECP) and other relevant authorities were directed to provide the required record and ensure their attendance at the next meeting.
The committee also examined the current status and gas supply arrangements of JJVL and expressed concern over the supply of domestic gas to a private entity while the public-sector Jamshoro Power Plant faced gas shortages.
The committee directed Sui Southern Gas Company (SSGC) to furnish details of the agreement or renewal, operational status of JJVL, outstanding and recovered dues, quantity of gas supplied and production, and the rationale and benefits of the arrangement in the context of national energy requirements.
The chairman also sought clarification regarding the basis for prioritizing gas supply to JJVL over the Jamshoro Power Plant and measures taken to prevent unauthorized gas utilization.
The committee took up the matter of the premature termination of 14 employees of the Geological Survey of Pakistan before completion of their contractual period.
The chairman directed the Secretary Petroleum to resolve the matter and submit a report to the committee. The chairman directed the relevant authorities to submit complete details of expenditure on the advertisements, as well as the pending FIA inquiry into allegations of excessive profits earned by OMCs on existing stocks following the sudden increase in petroleum prices in March.
The chairman further directed the concerned authorities to brief the committee on the daily oil pricing formula and ensure the presence of representatives of the Federal Investigation Agency (FIA), SECP and OGRA, along with all relevant records, at the next meeting to examine matters concerning OMCs.