Zaver Petroleum questions Gov over award of contract

Islamabad: The Zaver Petroleum Corporation Limited (ZPCL), an oil and gas company of Hashoo Group, of Sudruddin Hashwani has questioned the Director General Petroleum Concessions (DGPC) of the petroleum ministry for considering Fateh Group for grant of a concession in Pasni West in Balochistan for exploration and production of oil and gas.

ZPCL Chairman Sadruddin Hashwani, in his letter addressed to DGPC, said that his company was shocked that DGPC office whose role was to grant concessions to only companies, which meet the given criteria and have sufficient funds to invest in high risk and investment intensive area of exploration and production, was considering the Fateh Group for award of contract.

He said the Fateh Group is from the textile sector, and the grant of a concession to it in Pasni West in Balochistan is surprising to his group. The DGPC's act in the Fateh Group case indicates that it can offer an entry in the oil and gas sector for exploration activities to any potato and poultry wala, he added. The language of the letter indicates that the Hashoo Group feels itself duty bound to oppose the new entrants in the oil and gas sector.

The letter said: 'We are shocked that you (DGPC) is considering the bid of the Fateh Group for Pasni West block in Balochistan as it's clear from its bid document that it has no idea of geology and formation in the block and such instances will destroy the government's efforts to make Pakistan sufficient in energy.' He said the Hashoo Group has failed to understand on what basis the DGPC was entertaining companies with background in textile industry and lacking the knowledge of oil and gas sector. He maintained that Fateh Group's application for grant of concession in Pasni West should be rejected without any further delay.

Suddrudin Hashwani said: 'If such companies (Fateh Group) coming from the textile industry were allowed to enter into oil and gas sector, tomorrow any potato merchant and poultry farm-owner can bid for concessions for exploration and production activities.

When contacted, a DGPC official said the Fateh Group has applied for bidding for Pasni West block in Balochistan and being a leading group having a number of industries in its fold deserves the rights to show its willingness to enter in E&P business.

He said the ZPCL's bid was lower than that of the Fateh Group for this block and it was rejected, adding the ZPCL's protest against the Fateh Group bidding was a routine matter and of no extraordinary significance.

He said the petroleum ministry considers applications for any concession on the procedure and rules laid down in the Petroleum Policy approved by the government. The official said no one has any obligation to suggest the DGPC of the petroleum ministry for acceptance or rejection of any bid.

He said the Fateh Group will be granted the concession only after making sure that its work plan was better than other competitors, besides having required professional expertise to carry out drilling and exploration activities as per commitment.