Punjab received Rs67b royalty on oil, gas, SC told

Top court informed that funds are being spent in the districts concerned.

ISLAMABAD:

Authorities in Punjab conceded on Monday that the federal government has credited approximately Rs67 billion to the province on account of royalty on crude oil and natural gas during the financial years 1989 to August 2015.

Punjab Energy Secretary through Assistant Advocate General Punjab Muddasir Khalid Abbasi has filed a report in a suo motu case regarding the social welfare obligations of the oil and gas companies.



The application was moved in the Supreme Court (SC) on behalf of Tando Adam Tehsil Bar Association President Abdul Hakeem Khos. The petitioner had pointed out that oil and gas companies in Sanghar district were spreading pollution and not focusing on providing infrastructure, jobs and gas to the local population.



On December 27, 2013 the top court directed the director general petroleum concessions (DGPC) and provincial governments to ensure monitoring of the oil and gas companies’ social welfare operations.

Later on, former CJP Jawwad S Khawaja initiated the proceedings regarding the implementation of court’s December 27, 2013 order on the same subject.

The bench on October 14 asked all the provinces to submit a final report on the use and recovery of a social welfare fund by O&E companies so that the matter could be disposed of.

The Punjab government, while submitting the report, told the SC that the funds, provided by the federal government under the head of royalty, are being spent in the concerned districts through Annual Development Programmes every year.

During the current financial year 2015-16, 32,388.4 million have been allocated in eight production districts of Punjab. These districts are: Dera Ghazi Khan, Chakwal, Attock, Jhang, Mianwali, Rahim Yar Khan, Rajanpur and Rawalpindi where 524 schemes have been completed and 485 others are in progress.

Production bonus

The report stated the Punjab government had notified a Production Bonus Utilisation Committee on June 24, 2014 and circulated it among relevant districts, adding that the role of the committee is to indentify, prepare and approve public welfare schemes with these funds specifically near the operational areas.



The director general for petroleum concessions has transferred Rs244.953 million to the joint accounts of DCOs and EDOs of the eight districts where crude oil and natural gas are being produced.

Social welfare obligation

The report also said that Director General Petroleum Concessions has revised guidelines for the social welfare funds in 2014. As per guidelines, the funds are required to spend on specific sectors, including health, education, water, supply and drainage within the confined areas which are under exploration work at exploration stage.

Published in The Express Tribune, December 1^st,  2015.