950819

Rs 28m ransom paid

to tribals for

permitting Uch

gasfield operations

ASHRAF KHAN

ISLAMABAD: In an unprecedented move the federal government has paid a ransom amount of about Rs 28 million to the tribals of Dera Murad Jamali in Uch area for continuing the operation of Uch gasfield, it is learnt on authority.

Sources said the Oil and Gas Development Corporation (OGDC) have been facing operational problems in the Uch gasfield since long. Land owners of the area were demanding an amount of Rs 27.4 million. Accordingly, sources said, the first and second instalments callectively of Rs 13.4 million were paid off in January, 1995, through the political agent of the area. The third and fourth instalments amounting to Rs 14 million had been paid in June last as what the government termed as 'illegal gratification', sources revealed.

According to these sources, the government was rendered helpless in the area as it already had backed out from striking any deal with local or international firms which were inclined to set up power plants based on gas from the areas which are not safe and fall under the provincial government.

The news report of the Economic Co-ordination Committee (ECC) decision has already been published in Business Recorder.

The problems are not over yet as the locals are likely to continue such attitude and may repeat their demand in future, sources said.

The Ministry of Petroleum and Natural Resources had, time and again, sought assistance of the Balochistan Government and federal security agencies to ensure unhindered operations in the area of Dera Murad Jamali, but of no avail, sources said.

The situation may affect the Uch power plant. The 585 mw plant to be run on Uch gas for which Uch Power Ltd (UPL) had already entered into an agreement with the OGDC under which OGDC will supply 250 mmcf gas per day to the plant. According to the agreement, OGDC will have to pay Uch Power Ltd an amount of Rs 62 million per month as penalty if it (OGDC) fails to supply gas to the plant by March 1997. The OGDC is to go a long way ahead to drill 20 more wells at Uch gasfield to ensure supply of the contracted gas supply to the plant, which seems pretty difficult in the existing circumstances, sources said.

They further said that in March, 1993, when OGDC contacted the civil authorities for drilling Uch-9 well, it was advised to contact the chieftains of Bugti tribes as the area falls in the Bugti Agency. After protracted negotiations, sources said, at various level, which took more than a year, shifting of the rig to Uch-9 well could be carried out. In the meantime, the OGDC suffered a colossal loss of Rs 58 million, sources disclosed. It was reported that the attitude of the civil authorities was quite indifferent towards the complaints of OGDC and they always used to refer the matter to local influential persons.

OGDC is developing Uch gasfields and so far it has developed 10 wells. For developing 20 more wells an agreement of three dehydration plants of 150 mmcfd each has been signed with Petrosin of Singapore. The bids for gas transmission line of 50 kms, to be laid from Uch gasfields to power plant and for gas surface-gathering facilities at the field are being drafted by the OGDC for which contracts will be awarded soon.