Oil and Gas Development Company Limited (OGDCL) has awarded contract to a Chinese company for hiring rigs allegedly in violation of PPRA rules, sources said on Monday
Islamabad (Pakistan Point News / Online - 08th April, 2019) Oil and Gas Development Company Limited (OGDCL) has awarded contract to a Chinese company for hiring rigs allegedly in violation of PPRA rules, sources said on Monday.The sources in the OGDCL informed that, OGDCL tender-2020 was published in 2017 and the organization received offers from the rig contractors. The scope of work was to supply six drilling rigs-2000hp for on shore drilling and all services were inclusive.
The projected wells to be spudded either in the 4th quarter of 2016-2017 or by 1st quarter 2018-2019. And, in this contract, three rigs were provided by Chuanqinq Drilling Engineering Company Ltd.( CNPC), a Chinese origin drilling company based in Islamabad-Pakistan.The contract value was $ 22,968,209.48 while duration of the contract was one year expiring on 30th June, 2018. They said that at the end of this contract term, CNPC had allegedly tried to influence OGDCL Drilling Department for mobilization of its rigs.
However, OGDCL's departments like Supply Chain Management (SCM), other than Drilling Departments opposed to grant CNPC extension. And, extension at that time was not given to CNPC and a new tender number 3,229 was published by OGDCL for rental of six rigs.Nine bids were received and six lowest financials contractors were given the purchase order which were SENOPAC and HIGH Long etc and CNPC offer was rejected being highest and OGDCL awarded contract to the other bidders who were technically qualified and lowest in commercial as per the PPRA rule, said sources.
"Because CNPC did not won this tender and its rigs were going demobilized and the company had allegedly tried to use its influence in drilling department again to cancel this tender and securing extension to the previous tender number 2020.But, due to OGDCL's department's opposition for awarding CNPC extension to the tender which was previously won by CNPC, new tender number 3,229 was not cancelled and extension at that time was not given to CNPC," said sources.
According to sources, Muhammad Hussain working as AGM Drilling Operations is professionally not suitable for this seat as he lacks decision making in operational matters. Similarly, he was not involved in operations while his posting was at Rig N1. He was looking after transportation and giving gate passes for entry exit of the vehicles although he was drilling engineer. He had served only on one Rig.To get promotion as GM drilling, he is violating all the procedure, rules and regulations like recently process of rental rigs hiring of CNPC to make his superiors and big vendors happy, said sources, adding, "In last fiscal year, he was found unable to complete drilling targets which was mainly due to illegal support to CNPC for hiring rental rigs and delayed the rental rigs tender while this delay not only stopped the drilling in wells but also OGDCL lost huge amount in expenses as wells were not drilled on time which was a huge lose to the revenues of OGDCL.
Similar case of rigs is under investigation by FIA and Muhammad Hussain is also accused in that case as well."It is relevant to note that Muhammad Hussain working as AGM Drilling Operations was contacted many times through text message and phone calls on his cell phone number. But, all efforts remained in vain as he did not respond.
