Corporate responsibility: ‘PPL enjoys the support of the Bugti tribe’

PPL clarifies accusations levelled against it.

December 30, 2010

ISLAMABAD: With reference to a report titled ‘Rigidity keeps Sui simmering’ published in The Express Tribune on December 27, 2010, the management of Pakistan Petroleum Limited (PPL) would like to clarify a number of accusations levelled against it.

As a responsible corporate organisation, the PPL believes in sharing the benefits of development, particularly with stakeholder communities living around its operational areas and have embarked upon massive programmes in health, education civic amenities at Sui with the objective of bringing about a qualitative change and sustainability in the community standards.

In consonance with the company’s philosophy, we are going beyond direct employment by creating employment opportunities for the locals in any competitive market, while we affirm that only locals are employed in all operational areas except in skilled positions which are filled on professional competency merit giving preference to locals.

In Sui gas field a significant number of locals have been employed this year alone contrary to need under declining production from Sui, yet the company continues to recognise and discharge its obligations towards the local community. Hence the allegation that the company refuses to employ locals at the gas filed is baseless.

Further, on the subject of the PPL having any land lease agreement with the chieftain of the Bugti tribes, the company would like to clarify that it has never had any land lease agreements with the Bugti chieftain or any member of his family. On the contrary, the company has complied with all commitments with the Bugti chieftain. Even after his demise the agreed benefits continued and the PPL enjoys the support of the Bugti tribe in managing the smooth functioning of its operations at Sui.

On the matter of royalty payments to Nawab Akbar Bugti, all royalty payment obligations are being discharged as per law and this has not hindered the company’s operations in any manner. As a result, the report claims that the company staff was killed due to intense insurgency since 2005 which is untrue as no company employee has died in the law and order incidents at the time.

Lastly, it has been stated in the report that the army advised the PPL to pay Rs2 million a month to Nawab Aali Bugti. The PPL has made necessary combination of security arrangements through the law enforcement agencies as well as through the locals, resulting in marked improvement; therefore the question of quoted additional payment to the Nawab has never arisen nor was it demanded.

Further, the company is pursuing an aggressive exploration programme to optimise production of hydrocarbons and reserves replacement. At the PPL, good governance remains the cornerstone of all operations. The company has been recognised at various local and international forums for its professionalism and value add for all stakeholders through transparent processes, transparency and information sharing in line with international standards.

The PPL sincerely believes in an honest and meaningful contribution beyond obligatory requirements to help the underprivileged communities to improve the quality of life.


According to PPL’s own report, ‘Evolving Situation At Sui Gas Field’, presented to the ministry of Petroleum and Natural Resources on November 22, 2009, reveals that the company hired only 108 local employees between 2002 and 2009.

On the ‘Status of Locals of Sui Dera Bugti and Balochistan as of October 31, 2009’, the PPL said that out of a total staff strength of 1,743, non-local persons from other provinces in the management category were 276, and 69 from Dera Bugti while 75 others were from Balochistan. In the non-management, low-paid category, there were 1,044 persons from Dera Bugti and 1,046 from various parts of Balochistan and 346 from the other provinces.

The report also showed that the management of the PPL approached the ISI and home department of Balochistan when between 80 and 100 diploma-holders and sons of retired or deceased employees from the Dera Bugti area staged a sit-in for jobs in November 2009.

The PPL refused jobs to the diploma-holders on the pretext that the company was already overstaffed, but later accommodated 80 of them. They were deployed with the law-enforcement agencies on their request because of security reasons.

The report’s page 36 says: “Recently, 328 Brigade has conveyed the decision of army authorities to transfer the security responsibilities to Nawab Aali Bugti and has informed to make the payment of the entire Rs2 million per month to him.” Such a strategic change without taking all stakeholders into confidence would jeopardise the security of the installation at Sui: hence PPL informed 328 Brigade to maintain status quo and convene a meeting of stakeholders.

Published in The Express Tribune, December 30th, 2010.


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