The Senate Standing Committee on Petroleum has sought a 20-year breakdown of royalties paid by oil and gas exploration companies to provincial governments, amid concerns over revenue transparency and benefits for local communities. The committee's sub-committee, chaired by Senator Jam Saifullah Dharejo, directed the Petroleum Ministry and Sindh's finance and energy departments to submit detailed records at its next meeting.
Dharejo expressed dissatisfaction with Oil and Gas Development Company Limited (OGDCL) figures, which covered a 10-year period without linking royalties to production volumes. He sought year-by-year production and royalty records since the company began operations in 1995.
The committee also questioned OGDCL's exemption from production bonuses. The company stated the exemption applied to certain fields developed between 1990 and 1993, while a representative from the Directorate General of Petroleum Concessions (DGPC) said it was limited to the Sinjhoro Block in Sanghar under a 1997 concession agreement.
The DGPC official explained that royalty payments are deposited into a federal account at the National Bank of Pakistan, with the Finance Division deducting 2 per cent in collection charges before transferring provincial shares within 15 days. The official promised a detailed review of royalty payments over the past 15 years.
Dharejo emphasized that production bonuses could help fund schools, hospitals, and other facilities in areas affected by extraction, ensuring local communities benefit from their natural resources. The committee also called for preference for local residents in non-technical jobs at exploration projects in Tando Allahyar.
The Petroleum Ministry was asked to clarify whether regulations require companies to allocate a specific share of jobs to local people. Senator Qurat-ul-Ain Marri criticized Sui Southern Gas Company (SSGC) for failing to consult elected representatives on a proposed pipeline to connect 31 villages near the Gobi field.
The company's managing director stated the project was awaiting federal funding. The committee was also briefed on LPG adulteration, with the Oil and Gas Regulatory Authority (OGRA) reporting that an operation in Pano Akil led to the discovery and sealing of illegal carbon dioxide installations, with storage tanks confiscated.