QUETTA: The Oil and Gas Development Company Limited (OGDCL) has agreed to pay Rs12.6 billion to the Balochistan government as royalty of Uch gas field.
OGDCL and Balochistan government have agreed on a formula for payment of royalty on monthly tranche basis, officials of the CM Secretariat said. The Balochistan government has taken measures to receive billions of rupees from OGDCL as royalty of Uch gas field, they added.
OGDCL had withheld payment of royalties to the Balochistan government from September 2021 due to an abnormal increase in the revolving credit of power-buying companies, the official news agency reported.
Caretaker Balochistan Chief Minister Mir Ali Mardan Khan Domki had raised the issue of the due royalty at the national forums. OGDCL has accepted the position of the caretaker provincial government and agreed to pay the due royalty for three years.
Chief Minister Domki said the royalty is the right of Balochistan and would be spent on the welfare of the people.
He said companies operating in Balochistan are obliged to pay royalties according to the laws.
