ISLAMABAD, April 2: The government has received 15 Expressions of Interest (EoIs) for the strategic sale of Pakistan State Oil (PSO). Addressing a press conference here on Saturday Privatization and Investment Minister Dr Abdul Hafeez Shaikh said the government was now committed to sell its 51 per cent shareholding in the PSO, together with management control, to a qualified strategic investor.
Mr Shaikh said that during the earlier attempt to privatize PSO only two parties had come up, while the fresh attempt confirmed that among 15 EoIs received this time, were from most of the committed and much better quality players. Elaborating further, the minister said the parties, who had earlier submitted their EoIs in 2002, were sent individual letters inviting them to reiterate their interest and submit the complete Statement of Qualifications (SOQs).
With a view to facilitate potential investors and increase competition, the date for submission of EoIs and SOQs were extended until March 31, 2005 and April 15, 2005, respectively.
The parties who have not yet submitted their Statement of Qualifications were required to submit the same by April 15, 2005. Thereafter, the process of pre-qualification would be carried out and the pre-qualified parties would be invited to conduct due diligence, he added.
On completion of due diligence that might take three to four weeks and it was our endeavour to hold bidding for PSO and PTCL during the current fiscal year, which were moving smoothly, the minister said.
The parties who have submitted EoIs for PSO include: Kuwait Petroleum Corporation (Kuwait), Fauji Foundation (Pakistan), Abraaj Capital Limited (UAE), Consortium of Vitol S.A (Switzerland) and Hasan Associates (Pakistan), Lukoil International Trading and Supply Company (Russia), Dewan Mushtaq Group (Pakistan), Dawood Hercules Chemicals Limited (Pakistan), the Attock Oil Group (Pakistan), Abu Dhabi Group (UAE), PAL Group of Companies (UAE)/ATN Modarba (Pvt.) Ltd (Pakistan), Al-Jomaih Holding Co.(Saudi Arabia), Chevron Texaco (USA), Al Ghurair Investment LLC & Associates (UAE), United Bank Limited (Pakistan), and Tysons Oil & Energy (UK).
Replying to a question, the minister said that a principal decision has been made to privatize Pakistan Steel on fast track basis and for this purpose the Privatization Commission has invited EoIs from reputable firms or consortiums of firms for pre-qualification to act as Financial Advisor (FA) for evaluating the privatization potential of Pakistan Steel and to lead its sell-off process.
The last date for submission of EoI is April 15, 2005, while last date for receiving Request for Statement of Qualification (RSOQ) for inviting technical and financial proposals from the parties is April 30, 2005 and its privatization is targeted for the current calendar year.
The minister added that Pakarab Fertilizers would be privatized prior to PSO and PTCL while to determine the percentage for Initial Public Offering (IPO) of United Bank Limited (UBL), schedule to be launched by end of May or early June 2005, and to obtain approval for the reference price for Carrier Telephone Industries (CTI) the Cabinet Committee on Privatization (CCoP) would meet during the next week.
