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Published 13 Jul, 2017 06:58am

Shell pays Rs258.5m fine for oil tanker tragedy

ISLAMABAD: The Shell Pakistan Limited (SPL) on Wednesday paid the Oil and Gas Regulatory Authority (Ogra) Rs258.5 million as fine and compensation for the affected families of the June 25 oil tanker accident near Ahmedpur East.

In a statement, the SPL said it made the payment to Ogra in full on July 12. As agreed with the regulator, compensation to those affected by the tragedy near Bahawalpur would be disbursed by Ogra.

Ogra confirmed that it had received the full payment. It said the SPL deposited the amount of Rs10m as fine and Rs219m compensation for 219 deceased and Rs29.5m for 59 injured.

The payment was made in compliance with the regulator’s order of July 7 regarding the oil tanker accident, Ogra spokesperson Imran Ghaznavi said.

The SPL repeated its stance that it was paying the fine and compensation to comply with the regulator’s order, but reserved the right to contest it as the matter was under investigation. It said the company would decide the appropriate course of action once more information was known and investigations concluded.

The SPL said it did not accept liability.

On July 7, Ogra had held the SPL squarely responsible for gross violation of laws, rules and standards in oil transportation, resulting in the shocking accident.

AP adds: The PSL, a subsidiary of the Royal Dutch Shell, made the payment hours after the regulator threatened legal action.

The tragedy took place after a fuel tanker crashed and started leaking on the side of a highway and hundreds of people from a nearby village rushed to the scene to collect the spilled fuel. They were engulfed in flames when the spill ignited.

Published in Dawn, July 13th, 2017

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