ISLAMABAD, June 20: The bidding for the sale of majority stakes and management control of the Pakistan State Oil (PSO) is likely to be held early next financial year on the request of competing consortiums.

“All the participating consortiums unanimously requested that the bidding date be fixed after resolution of all issues so that they have adequate time for participating in the bidding,” minister for privatisation and investment Zahid Hamid told Dawn after a pre-bid conference with the bidders.

“We are considering their request and will announce a final date for bidding shortly,” he said, and added that all the seven potential bidders attended the conference. The moot was convened to consult bidders for a bidding date and to respond to their queries.

Informed sources said the bidders sought two to three weeks for resolution of certain issues, including receivables and liabilities of the country’s largest oil supplier.

They also raised questions about long-term contractual obligations on account of fuel supplies, including supplies to power producers and guarantees pertaining to payments.

An official statement said Mr Hamid appreciated the keen interest shown by all the pre-qualified parties and assured them that all issues pertaining to the transaction would be resolved expeditiously and the bidding would be held in consultation with them.

The government currently holds about 54 per cent stake in the PSO, including both directly and indirectly through the GoP-owned institutions.

The Privatisation Commission intends to sell 51 per cent equity stake in the PSO, together with management control to a qualified strategic investor.

J.P. Morgan is assisting the Government of Pakistan as financial advisor for the sale of PSO.

Speaking at the pre-bid moot, the minister pointed out that the latest figures showed continued upsurge in foreign investment, which had reached $6.3 billion in the 11 months, ending May 2007, which represented a 50 per cent increase over the corresponding period last year, adds APP.

He said this investment was coming from all over the world and in every sector, including oil and gas. In this sector, there had been a revolution in the retail oil distribution business, with increasing emphasis on service quality and modernisation of retail outlets.

The sector will receive a tremendous boost with the privatisation of PSO, he added.

Representatives of the PSO management, ministries of finance and petroleum and natural resources and PC officials were present during the meeting.