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