According to sources, the probe got under way after allegations surfaced that oil and gas exploration companies were forced to contribute money for the roadshows in the US, UK and Canada and the ministry granted advertising and campaign rights to firms allegedly owned and sponsored by officials of the ministry.
Sources claimed that the top hierarchy of the petroleum ministry at the time allegedly piled pressure on oil and gas exploration firms to contribute money to arranging the Petroleum Roadshow 2009 to highlight attractive features of the petroleum policy 2009.
Falcon Advertising and Consultants, which had made the complaint with the petroleum ministry, also claimed that extravagant spending, beyond what was permitted, led to wastage of $400,000 during the roadshows. Commissions and kickbacks were also paid during the campaign, it alleged.
According to documents available with The Express Tribune, the petroleum ministry collected $1.5 million for the roadshows from 28 oil and gas exploration companies, which were not legally bound to make the contribution.
Under platinum sponsorship, the ministry received $900,000 from eight exploration companies including BHP, BP, Eni, MOL, Oil and Gas Development Company (OGDC), OMV, Pakistan Petroleum Limited (PPL) and Mari Gas. Under gold sponsorship, the ministry got $250,000 from five companies including Nikko Resources, PEL, Petronas, Tullow and MND. Under silver sponsorship, 14 companies contributed $350,000.
The ministry spent this money on roadshows conducted in Calgary, Houston, Aberdeen and London. It spent $74,000 to publicise the events in newspapers, magazines and websites in these areas. A consultant was paid $50,000 for conference management, logistics and marketing while $15,000 was paid on account of travel and accommodation.
When approached, former additional secretary petroleum Ijaz Chaudhry, who had initiated the probe, said the complainant was fake as he did not reside at the address given in the application. As a result of his absence, “the inquiry did not move ahead.”
In a recent communications to the petroleum ministry, the consul general of Pakistan Consulate in Houston pointed out that the 2009 roadshow was held on a very short notice and was attended mostly by participants from Pakistan with no experience of oil exploration and production.
According to sources, the ministry has contacted oil and gas firms this time too in an attempt to collect contributions for the roadshows, which will be held from December 10 to 14 in Houston and London. However, they said, the companies were reluctant keeping in view the past experience when no response came from foreign firms.
Published in The Express Tribune, December 7th, 2012.
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