18 TO BID FOR GOP's WORKING INTEREST IN NINE OIL & GAS FIELDS
Islamabad, April 9, 2002

The bidding for the divestment of Government of Pakistan's (GoP's) working interest in nine oil & gas fields will be held in Islamabad on Friday April 15, 2002.

The nine concessions currently net a production of over 20,000 barrels of oil equivalent per day (approximately 9,700 barrels of oil and 62 million cubic feet of gas), up some 5% from the year before. Concessions which contain an excess of 50 million barrels equivalent of reserves, are:

Concession GOP Interest (%) Operator
Minwal 17.5% Pakistan Oilfields Limited
Pariwali 17.5% Pakistan Oilfields Limited
Turkwal 20.0% Pakistan Oilfields Limited
Badin I 40.0% Union Texas Pakistan
Badin II (Revised) 25.0% Union Texas Pakistan
Mazarani 12.5% Pakistan Petroleum Limited
Adhi 11.0% Pakistan Petroleum Limited
Ratana 25.0% Orient Petroleum Inc.
Dhurnal 25.0% Orient Petroleum Inc.

Early last year and again this year, The Privatisation Commission solicited Expressions of Interest (EOI) from parties interested in acquiring the GoP's working interest in the above concessions. In response 18 reputable parties submitted their EOIs to participate in the bidding process. Parties with relevant credentials who submitted an EOI were then provided an equal opportunity for a comprehensive assessment of the assets being offered. All the interested parties were provided required information regarding the concessions and the process. They were also allowed to conduct their own due diligence.
Gaffney, Cline & Associates (GCA) & JP Morgan are jointly acting as Financial Advisors with respect to the sale of GoP's direct working interest in these oil & gas concessions.

The privatisation of oil & gas entities in Pakistan offers tremendous opportunities for potential investors. The GoP is firmly committed to the deregulation and privatisation of oil & gas sector. The Government has embarked upon the sector reforms including the establishment of requisite legislative, regulatory framework, tariff rationalization and deregulation wherever possible. It has also initiated the Privatisation Program where in strategic investors are sought for the major transactions. The Privatisation Program offers an immediate access to attractive opportunities in Pakistan's oil & gas sector.