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The unprecedented response to the invitation for Expression of Interest (EOI)
for the privatisation of National Refinery Limited (NRL), which has set a new
record as regard to the participation in this transaction by 29 local and
foreign investors reflects their confidence in the government's continued
economic and privatisation policies. Dr. Abdul Hafeez Shaikh Federal Minister
for Privatisation & Investment stated this while addressing the officers and
the consultants of Privatisation Commission during a meeting held to review
the progress and status of various ongoing transactions here today.
December 13, 2004 was the last date for receiving EOI's from interested
parties, to acquire a 51% (33,985,788 shares) strategic stake in NRL.
The Minister said that NRL being the largest refining complex in Pakistan
with a crude distillation capacity of 2.7 million tonnes p.a. enjoyed a
unique position in the market as the only Lube Base Oils producer and the
largest manufacturer of Asphalts. NRL was set up in 1966 as a lubes refinery,
however, since then it has continuously expanded and upgraded its operations
to include a fuel refinery, a second lube refinery and a petrochemical plant.
NRL reported a Net Income of Rs.1.85 billion in FY2004, a 37% increase over
FY2003.
He directed the concerned officials to make efforts for the completion of
the phase of Statement of Qualification (SOQ) by next month and ensure to
bring the transaction to the bidding point by April-May-2005 up to the
satisfaction of the participants by facilitating and providing them level
playing field in a transparent and open manner.
Parties which have submitted EOIs include 1. Admore and Consortium, 2. Al
Tuwairqi Trading & Contracting Est., 3. Al-Ghurair Investment LLC and
Associates, 4. ALP Group Limited, 5. AMZ Group and Associates, 6. Asia
Petroleum Limited, 7. Attock Oil Group of Companies, 8. Bosicor Pakistan
Limited and Associates, 9. Caltex Oil (Pakistan) Limited, 10. Crescent Leasing
Corporation Limited and Consortium, 11. Crescent Standard Business Management
(Private) Limited, 12. Engro Chemical Pakistan Limited, 13. Fauji Foundation,
14. Gharibwal Cement Limited, 15. Ghulam Mohammad and Consortium, 16. Gul
Ahmed Textile Mills Limited, 17. KPC Holdings (Aruba) A.E.C., 18. Lukoil
International Trading and Supply Company Group, 19. National Refinery
Employees Union and National Refinery Officers Association, 20. Nishat (Chunian)
Limited, 21. Orient Petroleum Inc., 22. Pak HY-Oils Limited, 23. Pak Kuwait
Investment Company Limited and Consortium, 24. Pak Oman Investment Company
Limited and National Logistic Cell, 25. Pakistan Refinery Limited, 26.
Pakistan State Oil Company Limited, 27. Reliance Industries Limited, 28.
Sapphire and Consortium and 29. Shell Pakistan Limited.
The Minister was informed that the interested parties have been requested to
submit their Statements of Qualification (SOQ) by January 17, 2005,
following which the qualified bidders will be given access to the data room
to conduct their due diligence. Citigroup Global Markets Limited, UK are the
Financial Advisors to the PC on NRL privatisation.
The Company's designed crude oil processing capacity is about 2.7 million
tonnes per year (62,050bpsd) with a broad range of petroleum products to
cater to Pakistan's growing demand for petroleum products. NRL is
uniquely positioned in the economic landscape of Pakistan, where it
enjoys the unrivalled business niche as the only local refinery to produce
lube base oils ("LBO") and the single largest producer of high quality
asphalts.
Effectively, NRL has an 80% share of the LBO market and 80% share of
asphalts. In addition to indigenous blenders, LBO produced is sold to
several MNC marketing companies where it serves as a key component in the
production of high-end branded lubricants. In addition, the company produces
other value added petroleum products, specialty oils and slack waxes.
NRL products adhere to stringent international quality specifications and the
Company is certified in accordance with OHSAS-18001 and ISO-14001.