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Senate panel seeks greater benefits for communities in Sindh’s oil and gas producing areas

by Sub News
November 6, 2026
Senate panel seeks greater benefits for communities in Sindh’s oil and gas producing areas
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Karachi, November 6,2026: A Senate Petroleum Sub-Committee has called for greater transparency and improved delivery of benefits to local communities in Sindh’s oil and gas producing areas, focusing on gasification schemes, local employment, royalties, production bonuses and corporate social responsibility (CSR) projects.

The meeting, held at the Sui Southern Gas Company Limited (SSGC) headquarters in Karachi, was convened by Senator Jam Saifullah Khan Dharejo. Senator Qurat-ul-Ain Marri, MNA Zulfiqar Sattar Bachani, Deputy Commissioner Ghotki, the Vice Chairman of the Oil and Gas Regulatory Authority (OGRA), and representatives of the petroleum ministry, SSGC, Oil and Gas Development Company Limited (OGDCL) and other relevant organisations attended.

Local representatives informed the committee that village lists for gasification schemes had been finalised without adequate consultation with elected representatives. The committee directed SSGC to coordinate with local stakeholders to address the concerns.

It was also decided that the Deputy Commissioners of Sanghar and Tando Allah Yar would meet elected representatives and SSGC officials. A survey will be conducted of villages located within five kilometres of the operational areas of United Energy Pakistan (UEP) and OGDCL in Tando Allah Yar.

The committee emphasised that non-technical jobs in oil and gas projects should be offered to local residents, while technical positions should be filled by local candidates after appropriate training. It also called for greater investment in technical training to improve employment opportunities for people in producing districts.

The committee discussed the distribution of royalties and production bonuses among oil and gas producing districts. The Director General of Petroleum Concessions informed the participants that the royalty rate was 12.5 per cent of well production.

The committee sought production and royalty records for the past 10 to 15 years, including district-wise allocations, payments and details of any exemptions granted in production bonuses. It stressed the need for transparent information on the benefits reaching local communities.

The meeting also reviewed CSR activities in Ghotki, where OGDCL operates in 120 villages and Mari Petroleum in 159 villages. Officials informed the committee that two phases of CSR projects were under way, while the third phase had yet to begin. Contributions under the programme were also reported to be pending.

The committee discussed the repair of the Ghotki-Qadirpur road and the establishment of a vocational training school. Officials said land for the projects was available and OGDCL had completed the initial survey. A consultant would prepare the PC-I for approval, while road work was expected to begin shortly. The establishment of the vocational school would be pursued in coordination with the Deputy Commissioner.

The committee stressed that oil and gas producing communities should receive tangible benefits from local natural resources through improved infrastructure, employment, skills development and timely implementation of development and CSR projects.

Tags: Corporate Social ResponsibilityCSRKarachiOGRAPakistanSenate Petroleum Sub-CommitteeSenator Jam Saifullah Khan Dharejo.Senator Qurat-ul-Ain MarriSindhSindh's oil and gas producing areasSSGCSSGC headquarterSui Southern Gas Company Limited
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