Pakistan orders Shell subsidiary to pay $2.4 million for Bahawalpur tanker blast
July 7, 2017
ISLAMABAD: Pakistan’s oil and gas regulator on Friday ordered a subsidiary of Royal Dutch Shell to pay about Rs257 million in damages and compensation for a tanker explosion that killed more than 200 people last month.
The Oil and Gas Regulatory Authority (OGRA) has held Shell Pakistan Ltd (SPL) responsible for the blast in Punjab province on June 25 after the tanker carrying gasoline for the company rolled over, and villagers rushed to collect leaking fuel.
The road accident was caused by “non-professional driving/vehicle being lesser than required specs”, the authority said in a report seen by Reuters.
“The report shows that they have completely ignored the safety standards of the vehicles procured from the contractors,” OGRA spokesman Imran Ghaznavi told Reuters, referring to Shell Pakistan.
Officials from the company could not immediately be reached for comment.
The company earlier issued a statement saying: “Road safety is a priority at Shell. Our transport vehicles undergo regular maintenance and checks to ensure road worthiness.”
At least 217 people were killed in the explosion and 61 were injured, according to Amir Mehmood, spokesperson for Victoria Hospital in Bahawalpur.
The energy regulator ordered Shell Pakistan to pay a penalty of Rs10 million.
In addition, the regulator ordered the company to pay Rs1 million rupees in compensation to the families of each of those killed and half a million for each person injured. The regulator also ordered the company to upgrade its ‘infrastructure’ in line with its standards.
The OGRA sent a letter to the company on Monday asking for a detailed report on the accident but the authority had not got a reply, Ghaznavi said. The company has the right to appeal against the fine and compensation demand, he said.
The regulator also criticised police and highway authorities for failing to cordon off the accident site. A separate government inquiry into police conduct was being carried out, said Punjab provincial government spokesperson Malik Muhammed Ahmed Khan.
The chairperson of the OGRA, Uzma Adil Khan, said many fuel companies were not meeting safety requirements introduced in 2009, and the regulatory body had been slow to enforce them. “This incident is certainly a wake-up call for all of us,” she said.
The vice chairperson of the Pakistan’s oil tankers association, Zaman Khan, said the accident last month was an anomaly. “Tankers meet international standards,” he said.
