January 20, 2002	Sunday	Ziqa’ad 5, 1422

ISLAMABAD, Jan 19: Pakistan has allowed fresh bidders to take part in the privatization of its $1 billion working interests in nine oil and gas fields.

Privatization Minister Altaf Saleem told Dawn that it has been decided to extend the date for prequalification of bidders to February 15, 2001.

The process was put on hold in the aftermath of September 11 events in the United States as investors reaching Pakistan for prequalification on September 18 cancelled their visits.

To a question he said that during this period, fresh bidders would also be allowed to join the bidding process. A formal announcement to this effect would be made on Monday or Tuesday, he confirmed.

He said that two or three Chinese companies had approached the government to compete in the sale of these nine oil and gas fields. Besides, Shafik Gabr, the Egyptian businessman who recently visited Pakistan was also keen to bid for the transaction.

The list of earlier investors was however still intact while some additions would be made to provide a better competition. “This could be a good strategy to restart the stalled privatization process by allowing more and more parties to compete,” a Privatization Commission official said early this week.

Around 15 parties had submitted expressions of interest (EOIs) to take part in the bidding of minority interests in nine oil and gas fields but the process was stalled at the prequalification stage due to September 11 events. The bidding target earlier agreed with the International Monetary Fund was missed in May 2001.

The nine concessions together have a production in excess of 26,000 barrels per day (bpd) and 168 million cubic feet per day (mmcfd) of gas. The net production accruing to GOP from the concessions is estimated at 9,110 bpd and 58.2 mmcfd of gas. The net remaining reserves of government working interests are 22.1 million barrels of oil and 278.2 billion cubic feet of gas.

Jardine Fleming and Gaffney, Cline & Associates (GCA) are working as financial advisors to the Privatization Commission with respect to the sale of GOP’s direct working interest in nine oil and gas fields.

The GOP working interest along with relevant fields include 17.5 per cent each in Minwal, Pariwal and Turkwal in Punjab of Pakistan Oilfields Limited, 17.5 per cent in Ratana and Dhurnal in Punjab of Orient Petroleum Inc., 17.5 per cent Adhi in Punjab of Pakistan Oilfields Limited, 17.5 per cent in Mazarani Sindh of Pakistan Oilfields Limited, 17.5 per cent in Badin-I Sindh of Union Texas Pakistan Inc. and 17.5 per cent in Badin-II Sindh of Union Texas Pakistan Inc.