QUETTA: Oil and Gas Development Company Limited (OGDCL) has paid Rs12.6 billion to the Balochistan government as royalty of Uch gas field, which has been pending since 2021.

The OGDCL had withheld the payment of royalty since September 2021 due to an abnormal increase in the rev­olving credit of power-buying companies.

After talks between the two sides, OGDCL and the provincial government agreed on a formula for the payment of royalty. The amount was paid on a monthly tranche basis from August 2023 to January 2024, said a statement issued by the Chief Minister’s Secretariat.

Caretaker CM Mir Ali Mardan Domki had raised the issue at multiple forums, the statement added.

OGDCL has accepted the position of the caretaker provincial government and agreed to pay the royalty due for three years.

The CM said the royalty was a right of Balochistan and the money will be spent on welfare projects. He said companies operating in Balochistan are obliged to pay royalties according to the law.

Published in Dawn, February 21st, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Elections in India
Updated 21 Apr, 2024

Elections in India

Independent accounts and spot reports are at variance with Modi-friendly TV anchors and they do not see an easy victory for the Indian premier.
IHC letter
21 Apr, 2024

IHC letter

THIS is a historic opportunity for the judiciary to define its institutional boundaries. It must not be squandered....
Olympic preparations
21 Apr, 2024

Olympic preparations

THIS past week marked the beginning of the 100-day countdown to the Paris Olympics, with the symbolic torch-lighting...
Isfahan strikes
Updated 20 Apr, 2024

Isfahan strikes

True de-escalation means Israel must start behaving like a normal state, not a rogue nation that threatens the entire region.
President’s speech
20 Apr, 2024

President’s speech

PRESIDENT Asif Ali Zardari seems to have managed to hit all the right notes in his address to the joint sitting of...
Karachi terror
20 Apr, 2024

Karachi terror

IS urban terrorism returning to Karachi? Yesterday’s deplorable suicide bombing attack on a van carrying five...