PESHAWAR: The Peshawar High Court on Wednesday directed the Oil and Gas Development Company Limited (OGDCL) to produce a detailed report on oil and gas exploration in the province since the discovery of Gurguri gas field in Karak district years ago.

A bench consisting of Chief Justice Qaiser Rashid Khan and Justice Syed M Attique Shah directed the OGDCL director-general to submit the report before Sept 20 and adjourned hearing into a petition filed by several Karak residents, who sought multiple reliefs from the court while accusing an international oil and gas exploration company of ‘stealing’ crude oil there.

The petitioners, including Mujahid Islam and 49 other residents of Banda Daud Shah tehsil, requested the court to declare that the people of Karak, Kohat and Hangu, whose properties and lands suffered damage and who faced health hazards and environmental degradation due to oil exploration, are entitled to compensation by the provincial and federal governments.

They also prayed the court to pronounce that the Federal Investigation Agency, law-enforcement agencies, federal and provincial revenue authorities, Oil and Gas Regulatory Authority (Ogra), OGDCL and federal and provincial anti-corruption bodies are involved in the oil and gas theft and other issues as they safeguard the interest of the said exploration company.

Karak residents moved PHC alleging crude oil theft by company

The petitioners were represented by lawyers Mohammad Muazzam Butt and Fazal Shah Mohmand, while Barrister Rokhan Nafees appeared for MOL Pakistan Oil and Gas Company. The OGDC director general and KP Environmental Protection Agency deputy director Mumtaz Ali also appeared before the bench.

On the bench’s query about its earlier direction to the MOL company for installing a water filtration plant for the residents, Barrister Rokhan replied that his client was working on the installation of two water filtration plants in view of the requirement of the local population.

The OGDCL’s DG said presently, around Rs500 billion had been invested for exploration of new oil and gas fields.

He said the OGDCL was set to start work on new blocks for exploration of oil and gas and discovered new oil and gas reserves in Karak recently.

The DG said presently, exploration of three wells in KP were in progress.

He said 15 blocks in different areas had been auctioned for exploration, whereas 10 more blocks would be auctioned in Dec.

The chief justice observed that the OGDCL should ramp up exploration efforts as the country direly needed oil and gas.

Barrister Rokhan said the MOL Company had provided royalty to the government to the tune of Rs2.6 billion during last five years.

He added that the facilities provided to the local population as the company’s corporate responsibility had been increased over the years.

The lawyer said the company had produced a report about those facilities, which included better infrastructure.

The petitioners claimed that 8,000 barrel of oil was produced per day in the licensed area, while an inquiry conducted by the FIA, Khyber Pakhtunkhwa, had found huge discrepancies and corrupt practices in the operation of the company declaring the production was more than 30,000 BPD.

They also said all chemicals extracted from wells were dumped so carelessly that they spread around the whole exploration sites attached with Gurguri area.

However, the MOL Pakistan, in its report, had denied allegations and claimed it had fulfilled its all social welfare obligations. It also said the issue had been investigated multiple times.

The company insisted that it was in fact a victim of theft and had already been cleared by the Public Accounts Committee and other investigators.

Published in Dawn, May 19th, 2022