Islamabad August 18 2023: Oil and Gas Development Company refutes news on circular debt resolution plan and ask shareholders to rely exclusively on official communications for accurate information.
Price of OGDC and PPL drop PKR 2.4 and PKR 3.02 after the announcement at Pakistan Stock Exchange.
The Board of Directors of Oil & Gas Development Company Limited (OGDCL) held meetings on August 10, 2023, and August 17, 2023, to discuss matters related to Circular Debt Settlement.
In light of recent news articles addressing this topic, OGDCL has come forward to clarify its stance. The company emphasizes that as of the current date, no formal communication has been received from the relevant authorities regarding any circular debt settlement plan. Thus, any information circulating about such a plan should be considered speculative. Stakeholders and the public are encouraged to solely rely on official communications for accurate and verified information.
Regarding the KPD-TAY compression project, the management is pleased to announce the Board's approval for the hiring of the EPCC Contractor. The project is projected to be completed within 16 months, starting from the establishment date of the Foreign Supply Letter of Credit (LC) to the successful performance testing of all Compressor Packages.
OGDCL is steadfastly committed to the process of indigenization, aimed at enhancing self-reliance and bolstering the domestic economy through the utilization of local resources and technologies. The company's objectives in this initiative include reducing imports to preserve foreign reserves, reinforcing the trade balance by supporting local industries, ensuring a consistent supply of materials through alternative supply chains, increasing domestic market competitiveness by offering quality products at favorable prices, opening avenues for global exports, stimulating economic growth through increased production, employment, and local investment, nurturing knowledge and skill development to foster a proficient workforce, and aligning with government policies that emphasize domestic production and investment.
OGDCL extends its appreciation to its shareholders, the Ministry of Energy, the Federal Government, employees, partners, and the general public for their steadfast trust and support. The Board is dedicated to upholding transparency and will continue to keep the community informed about company matters in the best interest of all stakeholders.