09 November 2004	Tuesday	25 Ramazan 1425

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ISLAMABAD, Nov 8: The federal government has ordered an inquiry into alleged irregularities in the allocation of liquefied petroleum gas quotas from the Bobi oil field in Sindh and has sought three-year record of LPG allocations, official sources told Dawn.

The probe, the sources said, had been initiated on the complaint of SHV Energy Limited that had also raised the issue with the president of Pakistan.

A joint secretary of the petroleum ministry, Bashir Ahmad Chauhan, has been directed to conduct the inquiry and submit findings along with supporting evidence by Nov 20.

An official notification said the Oil and Gas Development Company Limited (OGDCL) - operator of the Bobi field - has also been directed to designate an officer each of the finance department and marketing department well conversant with the LPG business to assist in finalisation of the report.

The Ministry of Petroleum has been suggested that pre-qualified firms submitting bids to OGDCL should be given allocation of liquefied petroleum gas in a transparent manner and in case of more bids, a ballot should take place.

The complainant had informed the ministers for petroleum and natural resources and investment privatisation besides the Board of Investment and Oil and Gas Regulatory Authority that wrongdoings had been committed in the allocation of Bobi field LPG quotas.

In all, 10 companies had been allocated LPG quotas from the Bobi field. The letter issued by the petroleum ministry said that two out of 10 companies were owned by a husband and wife and both have been allocated quota of LPG from the Bobi field.

Similarly, two other companies were owned by same proprietor and they have also been allocated LPG by OGDCL. The dealer firms and companies in the South were given preference while a shortage was being faced in the North.

The SHV had complained that a major part of its LPG business network was based in the North while LPG allocations have been made to other 10 companies to its neglect.

Accordingly, the managing director of the OGDCL was directed to furnish para-wise comments and factual position on the allegations mentioned in the complaint.

The company was also asked to furnish complete record of the firms and companies to which LPG quota was allocated during the past three years by the OGDCL besides a copy of policy of marketing of LPG by the OGDCL as approved by the board as well as prescribed for allocation.

An official of the OGDCL, however, said the federal government had completely deregulated the LPG sector and the company was fully empowered to dispose off LPG production purely on commercial lines beneficial to the company.

He said the company had done nothing wrong in the LPG allocation and would respond to the enquiry accordingly.