ISLAMABAD - Cabinet Committee on Privatisation (CCOP) on Wednesday deferred the decision on divestment of government’s shares in Mari Petroleum Company Limited.
The CCOP, headed by Federal Minister for Finance and Revenue Shaukat Tarin, discussed the proposal for divestment of government of Pakistan’s shares in Mari Petroleum Company Limited. After a comprehensive deliberations, the chair directed Privatisation Commission and Ministry of Petroleum to further examine the issue in light of discussion and come up with comprehensive proposals during the next CCOP meeting.
In Mari Petroleum, the government has a 20 percent stake, OGDCL holds another 20 percent shareholding, Fauji Foundation has a 40 percent stake and the general public holds 20 percent shares. The CCOP had earlier approved to divest 18.5 percent shares of MPCL. As per requirement of Share Purchase Agreement, a notice was twice served to JV partners (OGDCL & Fauji Foundation) for NOC or exercise of option for purchase of shares. Later, a committee was constituted after a meeting of Petroleum Division and JV partners. A committee was constituted to finalize ToRs (terms of reference) for appointment of a technical firm for reservoir study of MPCL. The company has obtained proposals from the shortlisted firms. A contract for reservoir study is being awarded. Study will be finalized in three months after appointment of a technical firm. Petroleum Division had asked in April this year for delisting of MPCL from the privatisation.
The Cabinet Committee on Privatization (CCOP) examined the proposal for removal of Pakistan Engineering Company (PECO) from active privatization list. CCOP directed constitution of a committee consisting of representatives of Privatization Commission, Law Division, Establishment Division, Industries and Production Division, Finance Division and SECP to thoroughly analyze the case and come up with its proposals on issues highlighted in the meeting. Earlier, Privatisation Commission (PC) had decided to shelve privatisation of PECO plan until the entity is free from inherent issues and encumbrances. The PC board in early June this year had taken decision that PECO may be delisted from the privatisation list. It has also recommended that to sell that PECO may sell its land in light to settle GoP liabilities. The PC board has also recommended the CCOP that privatisation may be considered when the entity is free from inherent issues and encumbrances. After a detailed discussion, the PC Board decided to shelve sell-off process of PECO until its inherent issues are resolved.
The meeting discussed the proposal for privatization of Services International Hotel and after thorough debate approved the revised reserve price subject to further approval by the federal cabinet.
The meeting was attended by Federal Minister for Privatisation Muhammad Mian Soomro, Federal Minister for Industries and Production Makhdum Khusro Bakhtyar, Adviser to the Prime Minister on Institutional Reforms and Austerity Dr. Ishrat Hussain, Special Assistant to the Prime Minister on Petroleum Tabish Gauhar, Secretary Privatisation Commission, Secretary Petroleum Division, Secretary Industries and Production and other relevant officials.