ISLAMABAD, Jan 28: The oil companies were making payments to the Bugti tribe for the use of their territory for extraction of oil and gas, official sources said here on Tuesday.

Commenting on reports attributed to Nawab Akbar Bugti about the expiry of agreements and non-payment of dues to the Bugti tribe, the sources maintained that all payments were made as per accords signed.

“All the national exploration and production companies — PPL, OGDCL, SSGC and SNGPL — were making all due payments to the Bugti tribe for use of their territory,” the sources said.

“Any area of disagreement could be resolved through negotiations,” the sources said.

The sources, however, conceded that the agreements made with the tribe expired on Dec 31, 2002, but said: “We are ready to renew them and, in fact, any delay in signing these agreements was due to reluctance shown by the other side.”

Replying to a question, the sources pointed to what they called some areas of “disagreements” vis-a-vis these agreements. “Besides unilateral enhancement of rates (by the Bugti tribe), there is also a difference of opinion over the measurement of land being used by oil companies.”

For instance, in case of OGDCL, they said, agreements were signed between the company and the tribe for the fields in Pirkoh and Loti and there was no problem in that. Agreements have expired on Dec 31, 2002, and we are ready to renew them, the sources added. However, there remained some differences over the size of land in the Uch area.

The sources claimed that the OGDCL was making use of 1,100 acres for its field in Uch but the Bugti tribe was demanding rent for 4,300 acres.

Similarly, they maintained that for another field in the same area, 2,225 acres were being used but the rent was being demanded for 7,000 acres. “The matter, however, can be resolved amicably through negotiations,” the sources added.

To a question, the sources said that since 1975 the OGDCL had made a total payment of Rs350 million to the Bugti tribe.

Besides, they said, 12.5 per cent of the total royalty was also being paid regularly by the federal government to the provincial government in Balochistan.

The sources said that the OGDCL was paying around Rs10,000 per acre for fertile land being used for exploration and production in the Potohar and Hyderabad region but the Bugti tribe was demanding and being paid Rs17,600 per acre for the barren land.—APP