RAWALPINDI, Aug 18: Two foreign and three local petroleum companies prospecting for gas and oil in Gurguri area of the Karak district have suspended their operation for security reasons, sources told Dawn on Saturday.

The two foreign companies, MOL and Schlamberger, and national companies — Sui Northern Gas Pipelines, Oil and Gas Development Corporation and Pakistan Petroleum Limited — stopped exploring the area for natural resources after receiving threats from local people who demanded gas supply to all villages of the district, employment and other facilities.

The federal government has promised to supply gas to 18 villages.

Official sources in the gas and oil sector said the resistance from the villages close to the Gurguri gas plant presented Balochistan-like situation which, they said, had the potential to force the investors to wind up their activities as the locals had threatened to damage installations if their demands were not met.

Director-General Petroleum Naeem Malik confirmed to Dawn that the companies were facing threats from the local residents who were pressing for their demands which, he said, could not be met.

“We have arranged meetings with the influential local people but some anti-state elements are causing damage to foreign and national companies by breaking gas pipelines and blocking roads,” Mr Malik said.

However, local MNA Maulana Shah Abdul Aziz told Dawn that he had assured the companies of security and had visited Urmand, Aman Kot, Jatta Ismail Khel and Banda Daud Shah areas to ease the situation.

“I urge the companies to continue their operation because I have talked to the people who have promised that they would not damage any installation,” Maulana Aziz said.

He said the companies had invited contractors from other provinces despite the fact that a large number of investors were available locally. He said local contractors should be preferred.

Sources in the petroleum ministry claimed that the companies would not restore operation if the government did not ensure security for their employees as they had received telephone calls threatening to kidnap foreigners.