PC RECEIVES ELEVEN RSOQ FOR STRATEGIC SALE OF PAKISTAN PETROLEUM LIMITED

Islamabad, May 18, 2005

The Privatisation Commission has received fourteen (14) Expression of  Interest (EOI) from strategic investors of UK, Canada, USA, Pakistan, China, Hungry, Austria and UAE for acquiring 51 % equity stake with management  control in Pakistan Petroleum Limited (PPL), on an 'as is where is' basis, one of the largest Exploration & Production companies of Pakistan operating in various production and exploration concessions in the country, while among them eleven were able to submit their Request of Statement of  Qualification (RSOQ).

The parties submitting Request for Statement of Qualification have also provided audited financial statements of the preceding three years and details of ownership/ group structure. These include 1. BG Group, UK, 2. BP Pakistan Exploration and Production, Inc, USA, 3. China National Oil & Gas Exploration (CNODC) and ZhenHua Oil Co. Ltd, China, 4. Centurion Energy International Inc. Canada, 5. Dewan Salman Fiber Limited & Associates,  Pakistan, 6. INTERNATIONAL Sovereign Energy Corp. Canada, 7. Kuwait Foreign  Petroleum Exploration Company (K.S.C) Kuwait, 8. MOL Hungarian Oil & Gas Plc, Hungry, 9. OMV Exploration & Production Austria, 10. Orient Petroleum Inc. Pakistan and 11. Tysons Oil and Energy UK.

PPL has remaining proven plus probable (2P) reserves of 6.9 tcf gas and  15.0 mmbl Oil/NGL as of July 01, 2004, 82 % of which are operated by PPL with production of 942 MMcfd gas and 1,697 bbl per day Oil/NGL for FY 2004, representing about one third of Pakistan's total gas production. During FY 2004 PPL has shown revenues of PKR 17,668 million (US $ 299 million) and profit after tax of PKR 6,617 million (US $ 112 million). The company has significant portfolio of producing assets consisting of operating (Sui,  Kandhkot, Adhi and Mazarani) and non-operated (Qadirpur, Sawan and Miano, Block-22 and Tal) fields. It has strong exploration track record and prospective exploration portfolio comprising fourteen blocks (eight operated by PPL and remaining six by other joint venture partners).

The interest shown by a large number of quality players from around the  globe for the strategic sale of PPL is a very significant move, which indicates investors confidence in the governments economic management policies and the transparent manner of privatisation.

PPL was the fifth company whose shares were offered to the general public  through the Capital Market in July last year. It is one of very large companies in the oil & gas exploration and production sector and is the owner of the Sui Gas fields.

The Privatisation Commission received a record number of 7,55,000 applications from the smaller applicants at that time for 500 shares at offer Price of Rs.55/- per share. The total beneficiaries of this initial public offering were 205,750 persons. This process not only benefited a large cross section of the population, it also helped in deepening and  broadening the capital market.