ISLAMABAD, Jan 15: The government is expected to start afresh the sale process of its minority interests, worth around one billion dollars, in nine oil and gas fields to include more interested parties, Dawn learnt on authority.

“We are examining to cancel the earlier process in which interested investors were at the pre-qualification stage,” a senior official at the privatization commission confirmed.

A high level meeting on Thursday would take a final decision on the subject in view of interest shown by some new investors including Shafik Gabr, the Egyptian businessman, who also met president General Pervez Musharraf last week.

“This could be a good strategy to restart the stalled privatization process by allowing more and more parties to compete,” the official said.

“The process should have been completed in September but was delayed due to September 11 events in the United States and subsequent war on Afghanistan but we are now considering to give it a new look and take a fresh start,” said the official.

He said that some new investors had shown interest and there was no harm to have better prices through improved competition. The official, however, clarified that fresh sell-off process is being considered only for nine oil and gas fields and not for other privatization transactions.

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 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 field.

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 (Revised) Sindh of Union Texas Pakistan Inc.