ISLAMABAD - The receivables of Oil and Gas Development Company (OGDCL) from various government entities have reached to Rs200 billion and if the trend was not changed it may hurt the company present stable position.

The total receivables of OGDCL are Rs200 billion with Power Holding Private Limited and SNGPL have to pay Rs106 billion, said OGDCL MD Zahid Mir while briefing Senate Standing Committee on Petroleum here. The committee meeting which was chaired Senator Mohsin Aziz also considered matter of non installation of RO plants by the companies involved in exploration of oil and gas in District Sanghar, Sindh.

Zahid Mir said that SNGPL owes Rs36 billion to OGDCL while Power Holding Private Limited has to pay Rs70 billion to the company.

The OGDCL MD said that their total receivables are Rs200 and the amount was not paid then they may be able to maintain its stable position. The previous government has promised to pay Rs82 billion in the shape of Term Finance Certificates (TFC) but they didn't get any payment yet.

The OGDCL MD briefed the committee members regarding exploration activities of the company in oil and gas exploration. He informed the committee that the company had 48 exploratory blocks. The company is drilling at 15 blocks and owns 47 oil fields in whole country. There are 15 in Punjab, 3 in KP, 26 in Sindh and 3 in Balochistan.

Senate Standing Committee on Petroleum has constituted a subcommittee to implement the government's hiring policy for the locals in oil and gas exploration and production companies.

It was decided that members of subcommittee will visit eight oil and gas exploration blocks and analyze the employment situation there.

The committee sought details from Deputy Commissioner Sangher (Sindh) for installation of RO plants.  The committee further sought details of tenders being floated for installation of RO plants and funds spent so far.

Secretary Petroleum said that the local administration did not bother to spend funds collected by the oil and gas companies under DC head.

He further said that funds were collected under CSR but had not been utilised for the uplifts of local communities. The committee was informed that letters were written to all chief secretaries who will ensure that funds would be spent under CRS. The committee sought details of unspent funds of CRS from whole country within two weeks.

The committee directed oil and gas exploration companies to install 10 ROs plants.

Pakistan Petroleum Limited (PPL) deputy managing director informed the committee that the company spent Rs1 billion annually on CRS activities in the exploration sites.

Senator Jahanzeb Jamaldini said that people living in coastal area are facing acute shortage of drinking water. He alleged that drink water was stolen from Gwadar.  He maintained that oil and gas exploration companies should give employment to natives on priority basis.

Senator Shamim Afridi argued before the committee that the rate of gas in Punjab was higher than KP. Senator Mohsin Aziz chaired the meeting of standing committee. The meeting was attended by Bahramand Khan Tangi, Shamim Afridi, Salahuddin Tirmizi, secretary petroleum division and other officials of the ministry.