KOHAT, Aug 7: Land owners of Shakardarra held a protest demonstration on Monday against unjust distribution of price of the land occupied by the Oil and Gas Development Company for drilling and construction of offices and gas plant.

They accused the OGDC administration not accepting their demands in four years.

They surrounded the local police station early in the morning after learning that the OGDC had paid Rs526,000 for a piece of land for development work to a councillor, although it was a collective property.

Local Union Council Nazim Abdur Rehman and police officials held talks with the protesters.

The talks were postponed till the arrival of the OGDC operations Manager, who is on leave.

Local people had held demonstrations and blocked roads for dozens of times and destroyed OGDC and local government property last year when the authorities failed to supply potable water to the area despite assurances given to delegations of elders by the NWFP chief minister.

It is learnt that the OGDC is expanding its operations in the area after discovery of oil and gas reserves at two more sites. The company has completed drilling of Chanda-2 and Mela-1 wells, where oil and gas reserves have been found at depth of 5,200 metres and 4,800 metres, respectively.

The quantity of reserves was expected to be announced in November after the completion of the 90-day testing period, officials said.

The Mela-1 well is a joint venture of the OGDC and a Chinese firm.

OGDC officials said it had completed Rs5 million development schemes in the area. They said the company was providing free medical treatment and education to local people and it had also constructed a road there.

They said disputes over land price were arising because it was collective property and kin of the owners were also demanding their share.

They said gas supply from the fields had started but Rs15 million was needed for the installation of an assembly plant to control the pressure and Rs35 million for providing connections and laying pipelines. The laying of pipelines had begun, they said.

The OGDC is pumping nine million cubic feet of natural gas and 2,800 barrels of oil from Chanda-1 and Chanda-D facilities daily. The oil production is expected to increase to 4,500 barrels and natural gas to 15 million cubic feet per day.