Home »Fuel and Energy » Pakistan » OGDC board to decide handing over of Zin Block 29 to foreign firm

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  • Oct 27th, 2005
  • Comments Off on OGDC board to decide handing over of Zin Block 29 to foreign firm
The technical committee has approved the Oil and Gas Development Company Limited (OGDC) proposal to hand over operatorship of Zin Block 29 in Balochistan to a foreign company, and the matter will be presented in the Board meeting of OGDC here on Thursday for endorsement.

Zin block is a potential field for oil and gas production, but OGDC could not exploit it as it is in the troubled area of Mari tribe.

Sources said that OGDC gave "troubled area' as one of the reasons for handing over of the block to the foreign company.

The OGDC will have no hurdle in handing over operatorship of the block to the foreign company if the board endorsed the decision of the technical committee.

But, entering into the deal without calling international tender would be sheer violation of government policy and the procedure of the OGDC itself.

In its rules, the OGDC stresses the need of issuing international tenders for all contracts and agreements which involve money but its not following the same in the case of Zin which is its great asset.

The public sector companies like Oil and Gas Development Company Limited are required to call international tender for any such action as handing over of its block to any other company, which involves huge sum of money.

The government rules prohibit the public sector company to strike a deal with any local or foreign company without international tender.

The sole purpose of issuing international tender for any deal such as handing over of operatorship to any foreign company is to promote the culture of transparency in the working of the government departments and ensure that the national interest is fully protected.

Copyright Business Recorder, 2005


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