Archived press release

Premier oil: FOE goes to court in pakistan

4 October 2001

The court case between Premier Oil, Pakistani environmental groups and Friends of the Earth International is set to resume again on Thursday, at 11am, in the Sindh High Court, Karachi.

This briefing provides you with background information on Kirthar National Park, the court case and associated controversies. Photos on Kirthar National Park are available from FOE, on request

INTRODUCTION
In April Friends of the Earth International joined with environment groups in Pakistan to challenge British company Premier Oil over its plans to explore in Kirthar National Park - one of the country's oldest and most precious protected areas.

Since then, the political and commercial stakes have increase dramatically. At the last hearing, on 19th September, Pakistan's Attorney-General turned up in person to represent the Government of Pakistan. And it is also understood that Premier Oil have recently beefed up their own legal representation by hiring Khalid Anwar, Federal Law Minister in the previous government, who will represent them when the case resumes on Thursday this week.

The court case represent a major headache for Premier, since the legal petition calls on the Pakistani Government to cancel the original licence allowing it to explore for gas in Kirthar National Park. City commentators have said that the controversy will “...inevitably effect [Premier's] share price” [1].

BACKGROUND
Kirthar National Park is one of Pakistan's largest protected areas, stretching over 3,087 square kilometres of rugged mountain desert in the southern province of Sindh. It is home to numerous threatened species such as the unique Sindh ibex (a mountain goat) and the Urial sheep, and to desert wolves, striped hyena, golden jackal,"Chinkara" (a type of gazelle), and no less than eight species of eagle. It is also considered essential for the water supply of the 14 million people in nearby Karachi.

At the start of this year, Kirthar still enjoyed strict protection under Pakistan's wildlife laws. Section 15 of the Sindh Wildlife Protection Ordinance clearly prohibited the "...clearing or breaking up of any land for cultivation, mining or for any other purpose" in the park.

Undeterred, Premier submitted their gas exploration plans in the form of an Environmental Impact Assessment (or EIA). Local NGOs challenged this EIA in the Karachi courts, but in written evidence submitted to the court, Premier sought to play down environmental fears by citing examples of where the oil and gas industry had, it claimed, operated in "harmonious coexistence" and "perfect harmony"with the environment [1]. Friends of the Earth International, the world's largest environmental network,submitted a 380-page dossier of evidence to the contrary, including a detailed synopsis of the appalling environmental and human rights abuses associated with the industry in Nigeria.

While the case was still to be heard, the relevant laws were amended. Under the current military regime in Pakistan, key Government officials can amend legislation without reference to Parliament. In June,the Governor of Sindh province, Mohammed Mian Soomro - a director of an oil company until he became governor last year - amended the relevant wildlife law so that it would not apply:

"...to any activity in a national park in connection with the exploration or production of oil and gas which is undertaken in accordance with an environmental impact assessment". [2]

Premier Oil then went to the Sindh High Court and argued that the petition submitted by the environment groups should be thrown out because it had become “infructuous” (i.e. incapable of bearing fruit). But the court rejected this claim, and the case is now set to resume on Thursday.

Last month, Premier Oil announced that was unloading half of its Pakistani gas interests by establishing a $200 million joint venture with the Kuwait Foreign Petroleum Company (Kufpec). The Kuwati company has essentially taken the place of Shell, who pulled out of the joint venture earlier in the year, following media interest in the Kirthar controversy.

Craig Bennett, Corporates Campaigner for Friends of the Earth said:

“Premier Oil must drop its outrageous plans to explore in Kirthar National Park, and stop riding roughshod over people and the environment. It should also adopt a clear policy to avoid such precious areas in the future - or it will find itself being increasingly shunned by British investors who don't want to become associated with corporate irresponsibility.

It is also past time for the UK Government to act to make British companies more accountable for their actions overseas. Plans of this kind to great damage to the reputation of the UK abroad- in both business and politics”.

EDITOR'S NOTES

[1] For example, see “Environmentalists spoil Premier's party”, Shares - London, 13/09/01.

[2] Extracted from the Affidavit filed in the High Court of Sindh, Karachi, Pakistan, by "Premier & Shell Pakistan B.V. Holland through Premier Exploration Pakistan Ltd", Constitutional Petition number
1986/2000.

[3] Extracted from Section 3 of the Sindh Wildlife Protection Second (Amendment) Ordinance 2001.

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Published by Friends of the Earth Trust