ISLAMABAD, July 19: The government has decided to privatize Oil and Gas Development Corporation Limited (OGDC) in “one go” rather than splitting it as was earlier proposed.

Official sources said Finance Minister Shaukat Aziz on Thursday presided over a high-level meeting that approved the privatization plan of OGDC by disinvesting its 51 per cent shares.

The financial adviser of OGDC, Merrill Lynch’s three London based representatives gave the presentation to the meeting along with their Pakistan based partners — Khadim Ali Shah Bukhari.

They advised the government to privatize the majority shares of OGDC to get a better price. Earlier, it was being proposed that the corporation’s oil fields should be disinvested first as piecemeal privatization could get price for the organization.

Nevertheless, the decision was taken to off-load 51 per cent shares preferably within this year to collect about $1 billion to be mainly used for debt retirement.

Sources said once the new buyer took over majority shares, he would certainly be injecting fresh equity into the organization to make it financially viable. “And this is how the value of remaining government’s 49 per cent shares in OGDC could be increased considerably,” said a participant of the meeting.

When contacted he said that the privatization plan of OGDC has been approved with the instructions by the finance minister to off-load majority shares as early as possible. The meeting expressed the hope that both the local and foreign investors would take part in the OGDC privatization, which was one of the huge state sector organizations.