ISLAMABAD        -        The government has planned to divest 7 percent shares of Oil and Gas Development Company Limited (OGDCL) to the foreign and domestic institutional investors and general public at Pakistan Stock Exchange.

The officials of Privatisation Commission have made these remarks in a meeting of the National Assembly Standing Committee on Privatization that was held on Friday under the Chairmanship of Syed Mustafa Mahmud, MNA. Comprehensive briefing by Privatization Division and Ministry of Energy was given in the meeting.

The Secretary, Ministry of Privatization/Commission Rizwan Malik briefed the Committee over the Privatization of OGDCL  that in pursuant to Cabinet Committee on Privatization directions the Privatization Commission Board approved divestment of up to 7% of OGDCL shares to the foreign and domestic institutional investors and general public etc at Pakistan Stock Exchange. Privatization Commission invited of Interest for appointment of Financial Advisory Consortium and issued request for proposal to three Interest Parties. Due date for submission of technical and financial Proposal is December, 09, 2019.  A strategic partner is required to discover the true profit of its privatization.

The Committee was informed that present OGDCL share price was Rs133. However, its share price would be 7 to 8 percent higher than currency price when government would offer it for divestment. It is worth mentioning here that in 2014, the PML-N government had offered the OGDCL share at Rs216 per share, but it canceled the transaction after it was not fully subscribed by the investors.

Moreover, OGDCL officials apprised the Committee that OGDCL is the market leader in almost all aspects of up-stream sector including acreage, seismic, reserves and production. OGDCL is a debt free company, contributing Rs.160 billion to national exchequer. Government of Pakistan holds 74.97% interest while 10.05% with Benazir Employees Stock Option Scheme. OGDCL is producing 47% of Oil and 29% of Gas out of the total country’s production during 2019-20. Its net sale is Rs.261.481 billion & profit after tax is Rs1178.3 billion during FY 2018-19. During the fiscal year 2018-19 about 16 wells have been drilled including 9 exploratory and 7 development wells.   

The representative of Pakistan Petroleum Limited (PPL) apprised the Committee that the Privatization Commission Board approved divestment up to 10% share of PPL held by Government of Pakistan to the institutional investors through block sale. PPL is the pioneer in oil and gas field in the country. It has ten Board Members including Managing Director, four Government Directors and five Independent Directors. Government of Pakistan holds 67.5% while 7.4% shares are held by Benazir Employees Stock Option Scheme and their remaining 25% shares have been offered for free float. The Committee deferred the remaining agenda regarding Guddu and Nandi Pur Power Plants and decided that a separate meeting would be convened to get the full spectrum on the detailed discussion.    

The meeting was attended by Mr.Zulfiqar Ali Khan Dullah, Mr. Khurram Shahzad, Ms. Shandana Gulzar Khan, Ms. Syma Nadeem, Mr. Jamshed Thomas, Mr. Sikandar Ali Rahoupoto, Mr. Faheem Khan and Mr. Muhammad Pervaiz Malik MNA’s, Parliamentary Secretary for M/o Privatization, beside senior officers from the Ministry of Privatization and M/o Energy.