THREE PARTIES PARTICIPATE PRE-BID MOOT OF PAKISTAN STATE OIL

Islamabad, March 02, 2006

A pre-bid meeting for creating better understanding regarding the bidding process of the privatisation of Pakistan State Oil (PSO) was held at Karachi under the chairmanship of Mr. M. Tahsin Khan Iqbal Secretary Privatisation Commission.

The important matters required to be settled prior to the privatisation of PSO were discussed in detail with the potential bidders. All the stakeholders gave satisfactory replies to the queries made by the participating investors.

The potential bidders Abu Dhabi Group of UAE, Al-Ghurair Group of UAE and Consortium of Al-Jomeih Group of Kingdom of Saudi Arabia and Al-Noor of Kuwait participated in the pre-bid meeting. They have already completed the due diligence of the transaction in the data room.

The Government of Pakistan ("GOP") holds approximately 54% stake in Pakistan State Oil Company Limited ("PSO"), including both direct holdings of the Federal Government and indirect holdings through GOP owned institutions. J.P. Morgan is assisting GOP as the Financial Advisor for the privatisation of PSO.