ISLAMABAD - The Ogra has refused to accept Rs10 million fine deposited by the Shell Pakistan Limited and warned that the authority would proceed with legal action against the company if the payment of entire fine was not made within the stipulated time.

The Ogra has received a cheque from the Shell Pakistan Limited but the authority will not accept it unless the full compliance of the authority’s decision, Spokesperson of Ogra Imran Ghaznavi told The Nation.

The three-day deadline given by Ogra to SPL will expire today and if the company failed to comply with the decision of the Authority, then the law will take its course, he added.

The total fine the SPL has to pay is around Rs250 to Rs260 million. Shell is supposed to deposit the entire amount with Ogra and the Authority in coordination with the Government of Punjab will distribute the money among the victims. The spokesman said that they will take action according to rules and regulations. As per the rules after the end of three days’ deadline the fine will increase Rs1 million each day, Ghaznavi said.

On last Friday, the Oil and Gas Regulatory Authority (Ogra), while holding the Shell Pakistan Limited (SPL) responsible for Bahawalpur Oil tanker fire incident slapped a fine of Rs10 million on the SPL and also directed the petroleum marketing company to pay a million rupees each to the families of deceased and half-a-million rupees to the injured persons. The Ogra further ordered the SPL to deposit this penalty within three working days after receiving the order.

An oil tanker of the Shell Pakistan Limited (SPL) met with accident near Village Safeerwala, 6km from Ahmedpur Sharqya, Bahawalpur on June 25 that took lives of over 200 people while more than 100 suffered severe burn injuries.

Earlier in the day, Shell Pakistan Limited confirmed that it would pay the fine imposed by the Oil and Gas Regulatory Authority (Ogra) to comply with the regulator’s directive.

“However, we do so while reserving the right to contest the fine. The matter is under investigation, and we will decide on the appropriate course of action once more information is known and investigations have concluded,” said a spokesman of the oil company.

While the Shell Pakistan Limited does not accept liability, we clearly recognise that this was a tragedy that has deeply affected the community, he said. Therefore, he said, as an extension of our early and ongoing humanitarian efforts to secure medical aid for the injured and provide food and other relief to the affected families, Shell Pakistan Limited will make the payment requested by the Ogra, and is discussing with the Authority the appropriate means by which this financial assistance can appropriately reach the injured and the families who have lost their loved ones.

“We will continue to work with various aid agencies to provide immediate relief and work with the relevant authorities to identify the recipients and ensure that the above assistance reaches the affected people. We also look forward to working with the regulators, emergency services and the wider oil and gas industry to improve safety standards and address any gaps between industry practice and regulatory standards,” the spokesman added.