OGDC sell-off in the offing

ISLAMABAD - The government has finally decided to look into all options, including handing over management control to the buyer, to privatise strategically important Oil and Gas Development Company Limited, producing more than one-thirds of domestic crude oil.

A meeting of the members of the Board of Privatisation Commission (PC) was held on Tuesday under the chair of Syed Naveed Qamar, Federal Minister for Privatisation, Investment and Finance.

The PC decided that the Financial Advisor for Oil and Gas Development Company Limited (OGDCL) would be asked to work out all the options for the company’s privatisation.

These options will be sale of shares, strategic sale with management control and assets sale including Qadirpur Gas Field on fast track basis taking into account the observance of all steps strictly in accordance with the legal provisions.

Qadirpur Gas Field has gas reserves of about 3.5 tcf, worth $3 billion to $5 billion, and is 75 per cent owned by the OGDCL.

“It’s a big decision that the government has taken today and would bring substantial foreign investment through one of the biggest deals of Pakistan,” said one of the top officials of the PC on customary condition of anonymity. The government currently holds 85 per cent shares of the OGDCL.