OGDCL chief summoned in gas royalty case

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RAWALPINDI, March 12 The Lahore High Court, Rawalpindi bench, here on Thursday summoned managing director Oil and Gas Development Company Ltd (OGDCL) in a petition moved by Talal Bugti, seeking outstanding royalty for the gas obtained from his land in Balochistan.

Justice Asad Munir directed the MD to appear in the court on March 17 and explain as to why the dues were not being paid to the petitioner for the last seven years.

Mr Bugti through his lawyer Rafiqur Rehman Sanjrani sought recovery of the amount from the company pending since 2003. A standing counsel representing the federal government told the court that despite his repeated calls to the company officials, he could not convey the March 3 orders of the court seeking their comments.

Making the company MD, Establishment Division secretary and chief secretary Balochistan as respondents, the petitioner prayed to the court to direct the federal government and OGDCL not to issue payment cheques to the provincial government and pay the money to the legal heirs of Nawab Akbar Bugti.

Talking to Dawn, Mr Sanjrani said the petitioner owned 43,200 acres land in the area of Uch from where the OGDCL had been getting natural gas. It was agreed in 2003 that the explorer company would pay to Mr Bugti Rs18,000 per acre year as royalty, he said.

The lawyer said the company was to pay Rs330 million every year and the agreement was valid up to 2005, but, he added, the OGDCL had been issuing the cheques to government of Balochistan instead of giving them to the son of Mr Bugti.

He said the contract could not be renewed in 2005 and subsequently Mr Bugti was killed in August 2006 and the matter was not taken up by any body. He said the federal government and OGDCL owed about Rs2.33 billion to Talal Bugti and his sons. Mr Sanjrani said he had sought interim order for stopping the OGDCL from issuing the cheques to Balochistan government, direction for renewal of the contract and recovery of the outstanding amount.

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