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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.