PDI-Oxfam supported
Communities to Launch Joint Campaign against
Violation of CSR
by Oil and Gas Companies
Jati (September 26, 2007) Local communities, their elected representatives,
civil society activists and experts have decided to launch campaign against
the violation of the standards of Corporation Social Responsibility (CSR)
and Petroleum Concession Agreement (PCA) by the oil and gas companies working
in Thatta District.
This was decided in an “Awareness and Consultative Workshop on Corporate
Social Responsibilities of Oil and Gas Companies” organized by Participatory
Development Initiatives (PDI) jointly by Oxfam GB on Tuesday in Jati town
of District Thatta.
A large number of the, elected representatives, civil society activists, Local
Communities, literary persons and local experts participated in the workshop.
Those spoke on this occasion included Ishak Soomro Program Officer PDI, Secretary
Mehran Welfare Association Ahmed Ajab Jat, Ahsan Nuhario From Agha Khan Foundation,
Allah Bux Khoso Pakistan Fisher folk Forum, Mohd Memon Nazim Jati and a number
of villagers belonging to different villages close to oil and gas exploration
areas.
The participants expressed their concern that although according to the standards
of CSR as well as the sections of Petroleum Concession Agreement signed by
the oil and gas multinational companies with the federal government of Pakistan,
each oil and gas company has to invest about 40 million annually on the social
development of the local areas, however, the oil and gas companies exploring
and producing oil and gas in Jati and Shah Bandar tehsil district Thatta have
failed to make any investment for the local community development.
They also alleged that the oil and gas companies are also violating the standards
of CSR and the section of Petroleum Concession Agreement with regard to the
provision of jobs to the local communities. The agreement clearly stipulates
that preference would be given to the local communities in the provision of
jobs and the local untrained people would also be trained, however, the oil
and gas companies while violating the sections of the agreement have completely
deprived the local communities from jobs and trainings, the participants of
the workshop added.
The participants said that according to the Petroleum Concession Agreement
as well as the current Petroleum Exploration and Production Policy 2007, the
oil and gas companies have to pay the royalty to the local government at the
rate of 12.5% of the value of the petroleum at the field gate. However, expressed
concern on the fact that the local governments of Thatta district and Jati,
and Shah Bandar tehsil have still not received the royalty on the exploration
and production of oil and gas, which is the clear violation of the laws of
land.
They further alleged that the oil and gas companies have completely ignored
from the development facilities like Health centers, schools and Roads despite
district Thatta is least developed district of Sindh, according to the petroleum
concession agreement they have to pay for spending on the local social welfare
projects. They said that on the contrary the oil and gas companies in Thatta
district have been endangering and degrading the local environment and livelihood
resources by using different chemicals while drilling the wells and toxic
are throwing near the human population. This they said has resulted in spread
of different diseases in the area. They said that skin, lung and throat diseases
have become common in the area and women and the children are the main sufferers
of those deadly diseases.
In the conclusion, the participants demanded of the federal government to
improve the monitoring of the performance and activities of oil and gas companies.
The local communities and their elected representatives should be included
in the monitoring teams to monitor the violation of petroleum concession agreement
by the oil and gas companies in the area, they demanded.
Wednesday, August 22, 2007