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Islamabad, May 14, 2002
The Cabinet Committee on Privatisation (CCOP) in its meeting held today approved the revised bids for GoP’s working interest in two oil & gas fields namely Badin-I and Turkwal. The revised bid for Badin-I, submitted by a consortium comprising of BP Pakistan Exploration & Production Inc (UK) and Occidental Oil & Gas Pakistan LLC, was increased from US$131.5 million to US$143 million. The revised bid for Turkwal, submitted by Attock Oil (UK), increased from US$1.6 million to US$2 million.
In its earlier meeting, CCOP approved the highest bids for five oil & gas fields totaling US$42.89 million and advised the bidders for the remaining four oil & gas fields to improve their purchase price offer. A committee comprising the Secretary Petroleum, Secretary Privatisation and Senior Joint Secretary Finance was formulated to facilitate negotiations. The negotiations resulted in an increase of US$11.9 million for the two mentioned approved oil & gas fields.
Total bid amounts approved by the CCOP for seven of the nine oil & gas fields aggregates to US$187.89 million as compared to a best estimate value of US$179.45 million.
CCOP observed that the working interest divestment was the first major transaction of the oil & gas sector and its successful conclusion would provide strong impetus to government’s Privatisation Programme. CCOP also noted that due process was followed at every stage and all bidders were satisfied.
CCOP approved divestment of a 5% share holding of National Bank of Pakistan with a green shoe option for an additional 5%. Offer price is being valued keeping in view market price and earning potential.
CCOP approved divestment of the remaining shares (20+balance left over from the 10 % employees shares) in Bank Alfalah (formerly Habib Credit & Exchange Bank), through block offer.
CCOP gave the go ahead for the divestment of Management Rights of Investment Corporation of Pakistan for Lot ‘A’, consisting of 12 Mutual Funds and the bidding of Al-Haroon Chambers, Karachi, a property of Republic Motors. Reference price for both transactions was also approved.
Mr. Shaukat Aziz, Federal Minister for Finance chaired the meeting. The Federal Ministers for Petroleum & Natural Resources, Industries & Production, Communication, Labour, Environment, Privatisation, Chairman BOI, Governor State Bank of Pakistan and other senior officials were present during the meeting.