Daily Times

ISLAMABAD: A mega scam of Rs 40 billion has surfaced in the Ministry of Petroleum and elements behind it are so influential that enquiry into this matter has not been launched by the petroleum secretary despite the lapse of one year.

Petroleum Minister Shahid Khaqan Abbasi has claimed that he is neither involved in malpractice nor such corrupt practices are in his knowledge. According to documents available with Daily Times, licences for exploration of gas were awarded to two international oil and gas companies – OMV and MOL – during Musharraf regime. These companies were to explore oil and gas in Saqib, Mami Khel and Maramzai. They started drilling for exploration of natural gas. According to law the international companies have to do the gas exploration work within a stipulated time period.

The respective oil field started production after some time. The documents show that as per the claim of these companies production of crude oil started in 2009. According to 1986 laws Extended Well Testing Facility (EWT) was not provided to these companies, which also could not claim these facilities in accordance with the law. PPP-led government launched a new petroleum policy in 2009 soon after coming to power. EWT was extended to these companies under this policy. These companies obtained production from these fields for five years but did not provide information and data about it to Petroleum Ministry. Crude oil worth billions of rupees was extracted and sold out to oil refineries during these five years.

As per the law the responsibility for regulating the production of oil companies and collecting data rests with Ministry of Petroleum DG Oil. However, the concerned authorities kept mum over this irregularity and the companies inflicted heavy loss of over Rs 40 billion on the national exchequer. The documents show that these companies harvested production valuing billions of rupees on the pretext of experimental production and did not deposit even a single penny in the national coffers.

Ministry of Petroleum officers have been held responsible for the financial corruption in connivance with these companies. The documents disclose that DG Oil had provided EWT licence to these companies under which they sold out crude oil to refineries. However, EWT was not given to these companies. When this gross financial malpractice came to its knowledge the Finance Ministry, through a letter, directed deposit in national treasury of over Rs 40 billion on account of sale of petrol and gas under EWT. However, these directives were not complied with nor any disciplinary action taken by the petroleum secretary against any official on corruption charges.

Finance Ministry has sought complete data from these companies about the crude oil and gas sold by them from 2009 till now. When contacted by Daily Times to ascertain progress made in terms of inquiry or action in this scam, Petroleum Minister Shahid Khaqan Abbasi said he was neither updated on this matter nor petroleum secretary has kept him informed. Director General Oil Saadullah Shah also refused to give any explanation on the pretext of being pre-occupied in meetings persistently. Ministry of Petroleum sources told Daily Times that efforts are underway to hush up this scandal.