OGDCL Issued Notice by IHC Against Unfair Award of Contract

Islamabad High Court (IHC) has sought a reply from the Oil and Gas Development Company (OGDCL) on a petition that alleged the company awarded an illegal contract for oil transportation to the National Logistics Cell (NLC). IHC’s Justice Aamer Farooq was hearing the case.

A private contractor has alleged that OGDCL, on June 15, 2017, invited bids from private contractors for transportation of crude oil from sites near Gujar Khan.

According to the petitioner, he has a fleet of about 300 trucks, cranes/lifters, and clientele throughout the country and was one of the bidders.

Kashif Ali Malik, the petitioner’s counsel informed the court that all the bidders had to undergo a prequalification process in order to prove their financial soundness.

“Out of the 17 applicants, seven were prequalified including my client,” the counsel said in the court, adding that the NLC did not participate in the prequalification process.

Then again in November 2018, OGDCL invited financial bidding for the year 2019 for 12 active and 17 non-active routes. However, the company later approved an extension in the contract period of NLC for ten routes, and these sites were excluded from the bidding process.

He went on to say that his client, along with five other contractors, had previously submitted a separate plea in December last year in which they challenged OGDCL’s contracts.

“Instead of submitting a reply, OGDCL canceled previous contracts of my client’s company (M/S Shaheen Freight Services) alleging him of oil theft,” he told the court.

He rejected this allegation as baseless saying that the bowser was still stationed at a bus stop in Gujar Khan with intact seal and was available for verification.

After the preliminary hearing, the court issued a notice to the OGDCL and sought a reply in 10 days.



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