Peshawar: An audit report of the Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) for the fiscal year 2023-24 has revealed serious financial and administrative irregularities.
According to the report, the provincial company has failed to recover over Rs 3.9 million payable by the federal company, Sui Northern Gas Pipelines Limited (SNGPL).
The audit further disclosed that KPOGCL did not make required cash call payments to operators in Orakzai and Tirah blocks, resulting in a foreign exchange loss of Rs 902.3 million.
The report stated that under the decision of the Council of Common Interests (CCI), each provincial holding company was allotted one exploration block without bidding. KPOGCL initially chose the Lucky Block, which was later termed an unwise decision as it wasted both time and resources. At the request of the provincial government, the Lucky Block was later replaced with the Miran Block.
The audit highlighted that this was a “golden opportunity” for the company to select a productive block, but poor decision-making undermined the process. It recommended a formal inquiry to determine responsibility for the selection of the Lucky Block.
The report also revealed that vehicles worth Rs 59 million purchased by KPOGCL were registered under the Energy Department’s name and were unlawfully handed over to the department. Due to weak systems and ineffective management, the company lost ownership of its own vehicles. The report urged that these vehicles be retrieved and brought back under KPOGCL’s use.
It further recommended that the company ensure timely payments to operators to avoid foreign exchange losses and take effective steps to recover its outstanding dues from SNGPL.