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Home »Fuel and Energy » Pakistan » LPG allocation from Bobi, Kunnar fields: government to generate Rs 542 million extra revenue: Qamar

  • News Desk
  • Jan 30th, 2010
  • Comments Off on LPG allocation from Bobi, Kunnar fields: government to generate Rs 542 million extra revenue: Qamar
Government will generate additional revenue of Rs 542 million through the signature bonus in allocation of LPG quota from Bobi and Kunnar fields through open bidding. Federal Minister for Petroleum and Natural Resources Syed Naveed Qamar stated this during the press conference held here on Friday. Minister said that OGDCL had also cancelled temporary LPG quota from Bobi and Kunnar fields.

Naveed Qamar said that OGDCL received the highest bid of Rs 31 million per 5 MTD from Foundation Gas to allocate gas from Kunnar field and Rs 25 million per 5 MTD from M/S Fon Gas from Bobi field based on signature bonus. He said that the government would allocate LPG through open bidding after expiry of the contracts with different marketing companies. He defended the signature bonus introduced for LPG allocation from Kunnar and Bobi fields and added that earlier, all benefits were pocketed by LPG marketing companies.

"But now OGDCL will be receiving benefits from LPG," Naveed Qamar said. He said that government had set benchmark for LPG prices and therefore the prices would not exceed that benchmark. "I have become unpopular among some people for taking such decisions," he maintained.

"After assuming the charge of Minister, I directed to conduct bidding of LPG allocation from Kunnar and Bobi fields by cancelling LPG allocation on adhoc basis," Minister said adding that it will bring transparency in the process of allocating LPG by OGDCL. He said that after expiry of contracts, LPG allocation would be made through open bidding to ensure transparency in the process.

Oil and Gas Development Company Limited (OGDCL) has accepted bids of three companies to allocate LPG from Kunnar field and four companies for Bobi field. According to a list issued here on Friday, the companies whose bids offers matched signature bonus for Kunnar field included Foundation Gas, POL and OK Gas and offered Rs 31 million per 5 MTD, Rs 17.6 million per 5 MTD and Rs 11 million per 5 MTD respectively .The offer of four companies for Bobi field matched the signature bonus which were accepted. These companies are; M/S Fon Gas Rs 25 million/5MTD, M/S Qureshi Gas Rs 21 million/5 MTD, M/S POL Rs 19.1 million/5MTD and M/S OPI Rs 13.5 million/5 MTD.

Copyright Business Recorder, 2010


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