ISLAMABAD, Jan 6: The federal government has signed an agreement with Nawab Akbar Bugti according to which he would ensure security of oil and gas exploration activities in Balochistan as well as protection to the existing oil and gas installations.

This is the first stage in the efforts for bringing to an end a long period of uncertainty and inactivity as regards the exploration of oil and gas in the province.

Around 20 local and foreign petroleum exploration and development companies had declared ‘political force majeure’ — a term used to hold in abeyance the work programme required under the agreement due to political and security reasons beyond investors’ control — and exploration work had come to a standstill.

The agreement envisages that no more would the country’s two largest gas producing fields — Sui and Uch — come under rocket attacks in future and the Bugti tribesmen would also facilitate exploration activities, official sources told.Dawn

In return, the state-owned exploration and production companies, Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company Limited (OGDCL), would recruit as many as 150 Bugtis at Uch and Sui gas fields.

The federal government has now asked the Nawab to despatch a list of candidates he wanted to recruited so that it could be passed on to companies for appointment orders.

Besides, all other social welfare and uplift projects would be routed through Nawab Akbar Bugti.

However, no cash transaction would be involved. The government would reconstruct a road from Uch to Sui which had been destroyed over the years and also stand guarantor to the agreement between the companies and the Nawab.

The agreement was signed in Quetta before Eidul Fitr last month by director-general petroleum concessions (DGPC) G. A. Sabri, heads of OGDCL and PPL from the government side and a representative of Nawab Akbar Bugti. The low profile signing ceremony, sources said, was also witnessed by the Nawab himself and secretary petroleum M. Abdullah Yusuf.

For the second and final stage, Quetta Corps Commander Lt-Gen Abdul Qadir Baloch has been assigned to conclude details of similar agreement with the representatives of Sardar Attaullah Mengal and Sardar Khair Bakhsh Marri without further delay.

The corps commander was given a three-hour presentation at a meeting on Thursday in Quetta by DGPC and secretary petroleum about the details of ‘Bugti Agreement’ and similar concessions the government had already discussed with Sardar Mengal in London.

Under the original plan, the sources said, an agreement with Sardar attaullah Mengal was to be signed in London where is in self-exile but now both sides have agreed to sign it in Quetta.

On Sept 11 last, President General Pervez Musharraf, while presiding over a meeting in Quetta, had given Sept 30 as a deadline to the relevant authorities to lift the “force majeure.” “The deadline could not be met due to unavoidable circumstances but the job has been accomplished,” official sources said.

Private local and foreign companies had already indicated to support social sector projects provided they were given security assurances. About 12 exploration blocks in Marri, Bugti and Mengal areas had been granted to local and foreign companies but no progress could be made.

The sources admitted that none of the demands from Baloch sardars was unjustified but public sector companies, OGDCL and PPL, had created “a credibility gap by dishonouring their agreements in the past.”

The government had received a secret report in early September that rocket attacks on gas installations in Balochistan had three reasons: resentment of the local population for non-initiation of a welfare package, reliance of the companies on levies for protection instead of frontier constabulary and ignoring the provincial government/local civil administration in matters regarding security and survey.