Senate panel seeks 20 years of gas royalty records from Sindh
A Senate petroleum subcommittee has asked for 20 years of records on royalties paid by oil and gas companies. The Petroleum Ministry and Sindh's finance and energy departments must submit them at the next meeting.
- Subcommittee wants 20 years of royalty payment records
- Petroleum Ministry and Sindh finance and energy departments told to submit them at next meeting
- Finance Division deducts 2 percent collection charges before passing on provincial shares within 15 days
A subcommittee of the Senate Standing Committee on Petroleum has demanded 20 years of records on royalties paid by oil and gas exploration companies to provincial governments. It directed the Petroleum Ministry and the finance and energy departments of the Sindh government to present detailed payment records at its next meeting. The subcommittee is chaired by Senator Jam Saifullah Dharejo.
Dharejo said he was dissatisfied with figures presented by OGDCL, which covered only 10 years and did not link royalty payments with production volumes. He asked for annual production and royalty records going back to 1995, when OGDCL began operations.
The committee also questioned OGDCL's exemption from production bonuses. OGDCL said the exemption applied to certain fields developed between 1990 and 1993. A representative of DGPC said its exemption was limited to the Sinjhoro Block in Sanghar under a 1997 concession agreement.
A DGPC official told the committee that royalty payments are deposited into a federal account at the National Bank of Pakistan. The Finance Division deducts 2 percent as collection charges and then transfers provincial shares within 15 days. The official promised a detailed review of royalty payments made over the past 15 years.
Dharejo said production bonuses could help finance schools, hospitals and other public facilities in affected areas. The committee also called for local residents to get preference in nontechnical jobs at oil and gas projects in Tando Allahyar, and asked the Petroleum Ministry to clarify whether regulations require companies to reserve a share of jobs for local people.
Senator Qurat-ul-Ain Marri criticised SSGC for not consulting elected representatives about a proposed pipeline to connect 31 villages near the Gobi field. SSGC's managing director told the committee the project was awaiting federal funding.
OGRA reported that an operation in Pano Akil uncovered illegal carbon dioxide installations. It sealed them and confiscated storage tanks.
Why it matters for Pakistan
Royalties from gas production are a source of provincial revenue, and the committee's review concerns how much Sindh has received. Residents of gas-producing areas such as Tando Allahyar are affected by the questions on local jobs and production bonuses for schools and hospitals. The pending pipeline for 31 villages near the Gobi field depends on federal funding, according to SSGC.
