Oil and gas: Rs20m allocated to new department

KARACHI: The Sindh Government has allocated Rs20 million to the newly-established Oil and Gas Department. Provincial Minister for Power Shazia Marri has been appointed adviser to the department.

Sources in the government said that the decision on establishing the department was made following promulgation of the 18th Amendment, under which provinces will have 50 per cent share in all natural resources, including gas fields.

A high-level meeting was held at the CM House to discuss transfer of four dormant gas fields, situated in various districts of Sindh. Presently, the fields are owned by the Oil and Gas Development Company (OGDCL), but according to sources, the provincial government will establish its own corporation, which will work under OGDCL.

The government also plans to establish a new department – Energy Department – which will consist of power, alternative energy and coal departments.

Marri has already started meeting federal government institutions working under the Ministry of Petroleum and Natural Resources. At the meeting, Sindh Chief Minister Syed Qaim Ali Shah was informed that the required staff is being provided to the department.

“The federal government is already exploring and producing oil and gas in Sindh, but the provincial government will now work itself,” said a source privy to the meeting.

Shah stressed the need to streamline work of the new department and achieve better results.

He added that the Sindh Government will negotiate issues regarding natural resources with the federal government to sign any potential agreement.

Published in The Express Tribune, February 18^th, 2011.