Informed sources told Business Recorder that the Petroleum Division lawyers are reviewing the confidentiality clause of the LNG supply deal signed with Qatar by the previous government in February 2016, which prevents the disclosure of its key terms for three years after completion of its 15-year term.
The Federal Investigation Agency (FIA) and National Accountability Bureau (NAB) are reportedly also examining the LNG deal with the help of experts. If flaws in the agreement are uncovered, then that maybe grounds for its re-negotiation with the Qatari authorities, sources said.
On 19 October, the Federal Minister for Information and Broadcasting Chaudhry Fawad Hussain and Federal Minister for Petroleum Division Ghulam Sarwar Khan briefed the media on the cabinet''s decision to renegotiate the two LNG terminal deals. Sarwar clarified that in one agreement, the return of equity was 44 per cent in dollar terms, considerably higher than the global rate of 18 to 20 percent, while in the second the return of equity was about 22 per cent.
On 20 October, Sheikh Mohammad Bin Abdul Rahman Al Thani, Deputy Prime Minister and Minister for Foreign Affairs of Qatar, came on a day''s visit to Islamabad and reportedly the two sides agreed to hold more talks to settle the LNG issue. However, the Minister reportedly told Pakistani authorities that while Qatar is ready to be accommodative subject to the Pakistan government raising a justified concern on the deal, but making the deal public was simply not acceptable.
The LNG agreement is available with National Assembly, Senate and Pakistan State Oil (PSO) websites but important portions remain redacted. The official said prior to signing the 15-year LNG supply deal with Qatar, both the countries had signed the non-disclosure agreement under which either party was not allowed to disclose the commercial terms of the agreement.
Pakistan State Oil wrote to Qatargas Company during the previous administration stating that several members of Parliament were pressurizing the government to disclose the LNG deal in its entirety; the response of the authorities in Qatar was a resounding no.
Former Prime Minister Shahid Khaqan Abbasi had informed the Senate that not publicly disclosing key commercial terms of the agreement was approved by the then cabinet.
On August 8, 2018, Senate Standing Committee on Petroleum in an in-camera session was provided copies of the actual contract, without any redactions, and the copies were then collected at the end of the meeting. On 31 August, the same committee was informed by the PSO officials that "under no circumstances shall a party disclose confidential information to a shareholder or an affiliate if such a shareholder or affiliate: (a) is a direct competitor of the seller or buyer as the case maybe in the LNG or natural gas markets; and (b) may use the confidential information to obtain a commercial advantage."
Confidentiality clause 25.1 of the LNG deal is as follows: "Each party shall treat and keep all terms and conditions of this agreement, any information disclosed to it by the other party pursuant to or [in] connection with this agreement and any other information it receives as a result of the implementation of this agreement including all arbitration and expert proceedings, pleadings, evidence, determinations and awards hereunder (collectively referred to herein as "Confidential Information"), in strict confidence, and shall not transmit, reveal, disclose or otherwise communicate confidential information in whole or in part to any third party unless otherwise specified in this clause".