Economic Coordination Committee turns down Mari Gas request to increase exploration expenditure
Friday, January 27th, 2012 6:16:44 by Wajahat Javed
Economic Coordination Committee turns down Mari Gas request to increase exploration expenditure
Thursday, January 26, 2012: Mari Gas request to increase its exploration expenditure from $20 million to $40 million per annum has been cast off by the Economic Coordination Committee (ECC).
The ECC not just turned down the request they also referred the plea to the Council of Common Interests (CCI) because of Sindh’s reservations.
The ECC and the Ministry of Petroleum and Natural Resources had earlier discussed the matter, of raising the expenditure limit for Mari Gas, during a meeting on January 20, 2012. The Ministry was seeking ECC approval but the Sindh
Government intervened and strongly resisted the move, fearing it would cut its share of gas development surcharge.
A source who wished to stay anonymous said, “Some federal ministers from Sindh ferociously opposed the proposal, prompting the ECC to solicit the petroleum ministry to take the proposal before the CCI for seeking approval of provinces.
Some ECC members raised concern, saying Sindh’s reservations in this connection could not be ignored.”
Mari Gas has been receiving $20 million from the government for accelerating exploration activity by keeping the custody of the amount from the gas development surcharge which is given to provinces.
Officials from the petroleum ministry informed the ECC that Mari Gas is seeking the increase in expenditure ceiling as it was offered a lower gas price compared to other exploration companies. Mari Gas was receiving Rs56 per million
from British thermal units. The ministry argued that Mari Gas could not step up exploration activity because of insufficiency of funds.
Mari Gas is one of the largest oil and gas exploration and production companies in the country. The Government of Pakistan has a 20 percent share in the company while other institutions such as Oil and Gas Development Company (OGDC)
has a 20 percent stake, Fauji Foundation have 40 percent shares. The remaining 20 percent of shares are awarded to general public.
Short URL: https://www.newspakistan.pk/?p=10667
Posted by Wajahat Javed
on Jan 27 2012. Filed under Business, Pakistan.
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