OGDCL has to recover Rs 968.2 billion from its customers. Photo: File
Islamabad: The oil and gas sector has started to have negative effects due to the increasing revolving debts of the country’s largest oil and gas producer, Oil and Gas Development Company Limited (OGDCL).
OGDCL plays a key role in supplying gas to the country and has to collect Rs 968.2 billion from its clients. Projects may be impacted.
At present, the country’s state-owned company Pakistan LNG Limited (PLL) is unable to procure additional LNG to meet the country’s domestic demand due to a shortage of LNG in the global market in the wake of the Russia-Ukraine war. So, the only hope left in the country is to urge oil and gas prospectors to accelerate oil and gas exploration to meet the country’s demand.
The government even planned to reinstate the exploration licenses of companies that were insolvent or had their licenses revoked due to litigation with the government. More gas had to be found to meet demand when LNG became unavailable on the world market after the Russia-Ukraine war.
Moreover, the state-run companies cannot operate on a commercial basis, they are forced to supply gas even to government agencies that do not pay the bills due to the interference of political governments.
Sources told The Express Tribune that gas utilities, refineries and the power sector were its main defaulters. 282.4 billion rupees and 239.2 billion rupees from Sui Northern Gas Pipeline Limited.
OGDCL produces gas from its various fields and supplies it to SSGCL and SNGPL. These two companies had to pay Rs 647.9 billion in gas supply dues. UPL paid Rs 71.8 billion, Uch-11 Rs 54.17 billion. billion, Engro to pay Rs 263 million and FKPCL to pay Rs 23 million.
OGDCL also produces crude oil and supplies it to local refineries for processing petroleum products. A total of Rs 61.8 billion is due to these refineries for supply of crude oil.
ARL is the main defaulter owing Rs 29.15 billion in crude oil. NRL owes Rs 7.5 billion, PRL Rs 7.5 billion, Parko Rs 6.8 billion, ENAR Rs 5.8 billion and Byco Rs 4.8 billion. The government had issued short-term savings certificates against the deposits of the Oil and Gas Development Company to reduce some of the revolving debt.
It should be noted that the amount of outstanding loans owed by the major customers associated with the sector has exceeded one trillion rupees.
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