United they stand: Karak leaders say relocating oil refinery a travesty

Believe public is being robbed of rights; govt cites water crisis as reason behind move

PESHAWAR:

As elders and political leaders of Karak plan to resist shifting the construction plans for an oil refinery from Karak to Kohat, Chief Minister Pervez Khattak has directed revenue authorities to arrange land for the project in the latter district.

An insider privy to the matter told The Express Tribune a Dubai-based company, Al Motahedan Petroleum Refineries, signed a memorandum of understanding (MOU) with the Board of Investment in 2015. The plan was to set up an oil refinery and liquefied petroleum gas extraction plant in Khyber-Pakhtunkhwa.  According to an oil and gas journal, AMPR will invest “$500 million to build a grass roots refinery.”

Landing in Kohat

The company, through a letter, asked Khattak to allocate land in Khushal Garh, Kohat for the oil refinery and LPG extraction plant. As a result, the chief minister directed the K-P Energy and Power department and a provincial senior member of the Board of Revenue to process the request. A copy of the letter is available with The Express Tribune.

A senior official of the Energy and Power department, requesting anonymity, said the Kohat deputy commissioner was directed to make arrangements for land allocation. “The commissioner or the deputy commissioner will issue Section-4 of the Land Acquisition Act to acquire property for the project and no one [else] will be permitted to buy or sell it,” the official revealed.

Karak’s reservation

Elders and the political leadership of Karak—the main oil-producing district— are holding jirgas and gatherings to devise a strategy to oppose the refinery’s construction in Kohat. Karak’s locals want it built in the area in which the product is extracted.

In a recent jirga, political leaders and elders, including former and incumbent parliamentarians of the district, decided the move to shift the oil refinery would be resisted at all costs.

Pakistan Tehreek-e-Insaf (PTI) Karak General Secretary Furqan Shah said, “Shifting the refinery from Karak, a neglected district, will push the area back into the dark ages.” According to Shah, the political leadership of Karak has set aside their differences so they can collectively resist the shift and give people their due rights.

“We are not against Kohat, but the oil refinery is the sole right of Karak. Studies and surveys suggest Krappa [in Karak], the area where the main reserves are located, is the best place for the refinery.” Shah added, “Shifting it to Kohat will rob us of our rights.”

Krappa’s location

Adviser to Chief Minister on Jails Malik Qasim Khan, who also belongs to Karak, said a survey was conducted in September 2013. The exercise was carried out under the supervision of the then provincial minister for energy and power Sikandar Sherpao, who was accompanied by local MPAs, Kohat commissioner, a delegation of PSO (Pakistan State Oil) and technical experts.

“They surveyed Krappa, Soban in Shakardara and Khushal Garh in Kohat and declared Krappa was the most suitable place,” Qasim Khan stated. He also added water needed for the facility was adequate in the area.

The report stated Krappa is located on National Highway and major oil fields, including Nashpa, Makori and Manzali, which produce more than 35,000 barrels a day, are within a range of seven to 10 kilometres. It added seven dams and resources were available near Krappa to meet the water requirements of the oil refinery. Khushal Garh, meanwhile, is located at a distance of 70 kilometres from the oil fields, the survey stated.

The Punjab card

Qasim Khan confirmed the main reason cited for shifting the facility was a water shortage. “First of all, there is no shortage [in Krappa] and even if there is, water is a cheap commodity that can be transported to the refinery rather than taking the black gold the all the way to the water,” said Qasim Khan.

Another senior official said the investor may be looking at a bigger market in Punjab for its products. Khushal Garh is located on the border between K-P and Punjab and is the shortest route for the investor to tap the market,” said the official.

He added the people of Karak and Kohat should not make the issue controversial and divide jobs, revenue and development. “If they make it controversial, the federal government will shift it to Punjab and K-P will lose a huge project.”

Minister for Energy and Power Atif Khan said, “The subject is dealt with by the federal government; they issue licences and make deals while the provincial administration only facilitates land acquisition.” Atif also said the private investor will look at their own feasibility when setting up the oil refinery and the provincial government can’t force its hand.

Published in The Express Tribune, January 10^th, 2016.