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District and Sessions Court Islamabad on Saturday dismissed an appeal filed by Singapore-based company Petrosin against the Oil and Gas Development Company Limited (OGDCL), seeking a stay against the award of multi-million-dollar contracts for Kunner-Pasakhi Deep & Tando Allahyar Integrated and Uch-II projects.
OGDCL Managing Director Asif Sindhu confirmed that the appeal of Petrosin against the state-run oil and gas explorer had been rejected.
An OGDCL spokesman said Petrosin had filed a civil suit before the Civil Court Judge Islamabad, asking it to stop OGDCL from awarding the engineering, procurement and construction contract for the two gas exploration projects.
However, the Civil Court, which had earlier given a stay order in the case, later vacated the stay. Following that, Petrosin filed an appeal before the District and Sessions Court Islamabad and after detailed arguments by both parties, the appeal of Petrosin was dismissed, the spokesman said.
Earlier, OGDCL had received three bids from Presson Descon International Limited (PDIL), Malaysia’s KNN and Petrosin for the Kunner-Pasakhi and Tando Allahyar Integrated project. OGDCL declared Petrosin’s bid invalid as Petrosin’s partners had cancelled a joint venture formed for undertaking the gas exploration project.
Petrosin partners themselves informed OGDCL that they had abandoned the agreement with Petrosin after its expiry and they had nothing to do with the two projects.
According to the bids opened on May 25, KNN submitted an offer for $647 million while PDIL gave a $582 million bid. Petrosin’s bid was not opened as its offer was considered invalid.
The Kunner-Pasakhi project was expected to produce 250 million cubic feet per day (mmcfd) of natural gas and 286 tons of liquefied petroleum gas (LPG) per day.
For the Uch-II project, Petrosin was the lowest bidder, submitting an offer for $186 million. However, the OGDCL board has now decided that the company will itself implement the Uch-II project and no private party will be taken on board to avoid further controversy.
The two gas exploration projects have faced years of delay due to the litigation process, causing an acute gas shortage across the country.
Published in The Express Tribune, May 29th, 2011.
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