ISLAMABAD - Ministry of Petroleum and Natural Resources is inclined to pass on the Jakhro field with oil and gas reserves worth million of dollars to the government of Sindh, The Nation learnt reliably. Petroleum Ministry is near to pass on the Jakhro field to the government of Sindh. Consequently the Oil and Gas Development Company Limited (OGDCL) will lose the field whose lease expired on account of non-commercial production due to inefficiency on part of company management said official sources seeking anonymity. Sources revealed that Sindh government has come up with a demand to grant lease of Jakhro field enabling it to get the field at free of cost. Jakhro field termed by OGDCL management as 'dormant field has been very attractive for certain LPG investors. OGDCL management had scrapped the tender which bidding was scheduled in September last year. Jakhro field is estimated to produce 500 barrels per day oil, 10 million cubic feet gas per day (mmcfd) and 21 metric tons LPG per day. It is not out of place to mention that the Singh government is currently negotiating Gas Sales Agreement (GSA) with OGDCL management over dormant fields of the province. The Economic Coordination Committee (ECC) in its meeting held in last week of January 2011 had decided that the gas from Nur, Bagla, Jakhro and Sara West fields would be allocated to Sindh government, or its designated entity, subject to the conditions that (i) OGDC will be paid according to petroleum concession agreement, (ii) policy price for gas as well as products I-e LPG and condensate, (iii) product disposal by the buyer, in accordance with the prevalent rules and regulation and (iv) all applicable taxes. It may be recalled here that earlier Petroleum Ministry official reportedly said that lease of Jakhro field was granted to OGDCL in 2002 that expired in 2007 on account of non commercial production as per rule 43 of Petroleum and Exploration Rules. OGDCL management had applied to Director General (DG) Petroleum Concession for extension in lease of Jhakhro field. There is no rule to re-grant extension in lease, sources said adding that in such situation, OGDCL has lost right over the field and Sindh government is expected to get lease of the field. When contacted Spokesman of OGDCL Bisharat Mirza said that OGDCL management had applied for extension in lease after it expired and DG PC had not granted extension so far. Sources maintained that a certain group of officials in OGDCL had hatched conspiracy backed by certain investors who were interested in the field due to LPG production. Jakhro field is 15 kilometers away from Sanjoro field and therefore the field could be linked with the Sanjaro field as many other fields like Hakeem Daod were being linked. But certain group in OGDCL backed by some LPG groups had put the field in dormant fields to benefit some groups, sources said. It is relevant to mention that OGDCL had scrapped tender for sale of hydrocarbon resources at wellhead Jakhro condensate gas last year after Sindh government had written to OGDCL that it had the right to get field after 18th Amendment. Furthermore, OGDCL had declared Jakhro field as dormant and advertised bids on July 11, 2010 for the first time. OGDCL management advertised extension on August 28, 2010 after revision in wellhead gas sale formula and extended date of opening bids till September 30, 2010, which was cancelled.