Khyber-Pakhtunkhwa gets Rs17.8b in royalty

Oil, gas companies paid the amount for July-June 2012-13.

ISLAMABAD:

Oil and gas exploration companies, operating in southern districts of Khyber-Pakhtunkhwa, paid Rs17.801 billion in royalty to the province from July 2012 to June 2013.

According to an official, the amount included Rs13.883 billion in royalty on oil and Rs3.918 billion on gas.

These were paid by MOL for its operations in Manzalai and Makori fields in the districts of Karak, Hangu and Bannu while Oil and Gas Development Company (OGDC) contributed for activities in Mela field in Kohat, Chanda field in Kohat-Mianwali and Nashpa block stretching over Karak, Kohat and Mianwali.

“Since production and transportation of oil and liquefied petroleum gas (LPG) impair the infrastructure in contract areas, it is only fair that at least 10% of royalty is spent by the provincial governments on maintenance and development of infrastructure,” the official said quoting the Petroleum Policy 2012.

The policy has been framed by the federal government in line with the 18th Amendment to the Constitution.

About production bonus paid up to December 2013 under the petroleum concession agreement, the official said OGDC deposited Rs48.95 million, Rs97.96 million and Rs1.44 million with Kohat, Karak and Mianwali districts respectively.

Since inception, MOL has deposited $10 million for production from Tal block and OGDC deposited $15.5 million for production from Shakardara and Nashpa blocks.

For infrastructure development and other schemes aimed at benefiting the community in and around contract areas, the fund was utilised after approval of the petroleum social development committee, the official said.

The committee comprises MNA of the district as chairman, MPA as member, district nazim as member, district coordination officer (DCO) as secretary, two representatives of the company as vice chairman and member and tehsil or taluka nazim of the district as member.

In case of more than one MNA in a district, the MNA of the constituency producing maximum hydrocarbon will be the chairman of the committee.

According to estimates, K-P was producing 46,000 barrels of oil per day and 380 tons of LPG. Its share in the country’s gas production stands at 27%, though it consumes 10%.

Published in The Express Tribune, May 17^th, 2014.

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