Qadirpur Gas Field: Four Options For Sell-Off Referred To Ccop

Saturday, September 13, 2008 at 12:02 pm under Business News Qadirpur Gas Field: Four Options For Sell-Off Referred To Ccop

ISLAMABAD:Despite several hours long presentation made by the financial advisor, the Privatisation Commission board on Friday could not come up with a clear plan for Qadirpur gas field sell-off and finally it decided to refer the whole scheme of four options to the Cabinet Committee on Privatisation (CCoP) for its final decision.

Talking to Business Recorder a participant said, “We deliberated Qadirpur gas filed sell-off for hours, but instead taking a final decision the meeting referred the case to CCoP to pick up any one of the options for presenting it for bidding on priority basis.”

The four options referred to CCoP included sell-off of entire 75 of OGDCL shareholding, divestment of only 50 percent shareholding along with management of Qadirpur gas field, securtisation of income of the field and issuance of global depository receipt (GDR) to raise funds from the international market against OGDCL assets.

Sources said Qadirpur gas filed shares 550 mmcfd gas and it’s going to increase to 650 by the end of December 2008. In terms of gas output it’s the largest asset of OGDCL. The entire focus of the Privatisation Commission board meeting was on Qadirpur gas field sell-off but the official handout issued here after the meeting did not give any hint of it. It claimed that the Merrill Lynch and KASB, the financial advisor, presented different options to the board for OGDCL sell-off. The official handout gave an impression that the entire scheme discussed by the board was related to OGDCL’s strategic sell-off.

It said, “The financial advisors, Merrill Lynch and KASB, made a presentation to the Privatisation Commission board, outlining various strategic options for OGDCL sell-off which will enhance the value of OGDCL as a company, further develop Pakistan’s oil and gas sector, and benefit local and international shareholders value.

The PC board emphasised that efforts may be made to develop options wherein minimum changes be made in the present structure of the organisation to ensure maximum benefits and to safeguard the interests of the employees.” It added that Board of Privatisation Commission, which met here with Finance and Privatisation Minister Syed Naveed Qamar in the chair, considered a severance package proposal for the permanent/regular employees of SME Bank.

It maintained that the board was informed that after detailed discussion with the employees of SME Bank a severance package has been agreed and it was followed by singing of an MOU. The board referred the package to CCoP. The meeting was informed that all arrangements had been finalised to hold bidding for the privatisation of Hazara Phosphate & Fertilisers Limited (HPFL) during the last week of the current month.

The meeting reviewed progress on fresh expressions of interest for Jamshoro Power Company Limited (JPCL), a generation unit of WAPDA and status of Heavy Electrical Complex (HEC) sell off. It said the board also reviewed status and progress of various other ongoing and upcoming transactions and formulated its recommendations for approval of CCoP.