LPG extraction project: OGDCL workers seek cancellation of Karak contract
Allege rule violations in award of tender, losses to national kitty.
EPCC is prevalent and has been implemented very successfully in Pakistan and abroad STOCK IMAGE
ISLAMABAD:
A company whose contract for extracting Liquefied Petroleum Gas (LPG) was cancelled by the Supreme Court with directions to recover Rs22 billion from it, has been provided with another opportunity “to plunder national wealth”, it emerged on Thursday.
Abdul Rasheed Shinwari, the vice president of OGDCL All Pakistan Mazdur Itehad Union petitioned the Islamabad High Court that the tender for LPG extraction project awarded to Jamshoro Joint Venture Limited (JJVL) after the tender awarded to Thermo Design Engineering was annulled after 14 months of slow work.
Islamabad High Court Justice Aamer Farooq on Thursday sought replies on the issue within two weeks from the Petroleum and Natural Resources secretary and the Oil and Gas Development Company (OGDCL) managing director.
The petitioner has made the Federation of Pakistan, Ministry of Petroleum and Natural Resources, and the managing director and general manager sales of OGDCL and JJVL respondents.
Shinwari, through his counsel Adil Majeed Khan, told the court that OGDC intends to undertake installation of an LPG recovery plant, compressor installation and allied facilities at Nashpa Oil Field, Karak by using the process fee method instead of engineering, production, construction and commission (EPCC) method.
EPCC is prevalent and has been implemented very successfully in Pakistan and abroad, while also being the most efficient and far more economical than the process fee or rental plant methods, he said.
The respondents, however, in order to fill their own pockets are desperately inclined towards plundering the natural resources of the country for their own good at the expense of public welfare, the petitioner claims.
Through the process fee method, JJVL will not only receive rent or profit share during the period of contract, but would also get to uninstall the plant after expiration of the contract or have the right to sell it to OGDCL, he said, explaining that this would translate into OGDCL paying rent for its own plant.
Referring to JJVL’s chequered history, the petitioner said that the company was involved in the LPG scam, where the Supreme Court cancelled an LPG extraction contract and directed authorities to recover Rs22 billion from it.
“It shows gross criminal negligence and corrupt practices on the part of respondents in advancing undue and illegal favours to JJVL,” stated the petitioner.
Conversely, the petitioner claims that the EPCC method would increase annual net profits by approximately Rs124 billion.
The petitioner requested the court to declare the tender awarded to JJVL as null and void and direct the respondents to proceed with the LPG extraction project on EPCC basis.
Published in The Express Tribune, May 2nd, 2015.
A company whose contract for extracting Liquefied Petroleum Gas (LPG) was cancelled by the Supreme Court with directions to recover Rs22 billion from it, has been provided with another opportunity “to plunder national wealth”, it emerged on Thursday.
Abdul Rasheed Shinwari, the vice president of OGDCL All Pakistan Mazdur Itehad Union petitioned the Islamabad High Court that the tender for LPG extraction project awarded to Jamshoro Joint Venture Limited (JJVL) after the tender awarded to Thermo Design Engineering was annulled after 14 months of slow work.
Islamabad High Court Justice Aamer Farooq on Thursday sought replies on the issue within two weeks from the Petroleum and Natural Resources secretary and the Oil and Gas Development Company (OGDCL) managing director.
The petitioner has made the Federation of Pakistan, Ministry of Petroleum and Natural Resources, and the managing director and general manager sales of OGDCL and JJVL respondents.
Shinwari, through his counsel Adil Majeed Khan, told the court that OGDC intends to undertake installation of an LPG recovery plant, compressor installation and allied facilities at Nashpa Oil Field, Karak by using the process fee method instead of engineering, production, construction and commission (EPCC) method.
EPCC is prevalent and has been implemented very successfully in Pakistan and abroad, while also being the most efficient and far more economical than the process fee or rental plant methods, he said.
The respondents, however, in order to fill their own pockets are desperately inclined towards plundering the natural resources of the country for their own good at the expense of public welfare, the petitioner claims.
Through the process fee method, JJVL will not only receive rent or profit share during the period of contract, but would also get to uninstall the plant after expiration of the contract or have the right to sell it to OGDCL, he said, explaining that this would translate into OGDCL paying rent for its own plant.
Referring to JJVL’s chequered history, the petitioner said that the company was involved in the LPG scam, where the Supreme Court cancelled an LPG extraction contract and directed authorities to recover Rs22 billion from it.
“It shows gross criminal negligence and corrupt practices on the part of respondents in advancing undue and illegal favours to JJVL,” stated the petitioner.
Conversely, the petitioner claims that the EPCC method would increase annual net profits by approximately Rs124 billion.
The petitioner requested the court to declare the tender awarded to JJVL as null and void and direct the respondents to proceed with the LPG extraction project on EPCC basis.
Published in The Express Tribune, May 2nd, 2015.