Privatization Commission has
announced the divestment of Government of Pakistan's (GoP) minority working interest in
oil and gas fields in a phased manner.
Investment banks, well-versed with divestitures preferably in the
upstream oil and gas sector and duly supported among other leading legal technical and
accounting firms, have been invited to submit their 'Expression of Interest', for acting
as qualified Financial Advisory (FA) Group in assisting GoP to divest its working
interests in nine oil and gas fields, covered under various petroleum Concession
Agreements, in the first phase.
Donors asking govt to finance $70 million cost overrun
The government is under pressure to finance the cost overrun of Rouseh
power project, sponsored by a private power producer, amounting to around $70 million, it
is learnt. Sources toldthat international donors and the management of the Rouseh power
project, are pressurising finance ministry to fund the cost overrun of Rouseh from the $1
billion World Bank power sector loan, $800 million of which has already been utilized.
The Rouseh management has told the finance ministry that the cost
overrun of its project is the consequence of delays caused by Wapda so the government
should finance it from the loan it had acquired from the World Bank for energy sector
The company has indicated that if it is not provided $70 million
immediately, it will go into international arbitration.
The World Bank, these sources added, has asked the government to take a
decision on the matter immediately and indicated that Rouseh might go for international
arbitration if not provided the demanded financing.
Long Term Credit Fund (LTCF), a body set up under the WB-GoP loan
agreement to supervise the loan and to restructure the power sector infrastructure, has
set conditions including obtaining clearance from Wadpa, PPIB and ministry of water and
power and Ehtesab Bureau before the release could be considered.
Interestingly the Rouseh had an agreement with the NDFC for $40 million
for cost overrun and for the last three years it had paid over Rs60 million to NDFC as
commitment charges. But now it has told the GoP that this loan is very expensive so it
wants the financing from the WB loan.
Exploration work at two more wells
The Oil & Gas Development Co (OGDCL) has spudded exploratory well
in Siah Koh (Balochistan) at Burzi and Lashari well No 4 in Lashari Centre in
In order to meet the target for the year '98-99, OGDC has accelerated
According to an OGDL press release, the Burzi well No. 1 and Lashari
well No. 4 is the 8th & 9th well spudded during the current financial year. Apart from
these nine wells, a deep drilling rig at Toot well No.15 is in process for Jurassic sands
and results are expected soon.
The Burzi well No. 1 is being drilled which was awarded to OGDCL in
'97. The well is located 30 kms East of Barkhan Town and 19 kms south west of Rakhni in
The well will be drilled up to 2750 meters to test the hydrocarbon
potential of Cretaccous and Jurassic reservoirs. With the start of drilling at Burzi well
No. 1, hydrocarbon exploratory efforts are in process in all the four provinces.
BHP's more drilling success in Sindh
The Broken Hill Proprietary (BHP) Company of Australia on Tuesday
announced further drilling success on the Zamzama field in Sindh.
According to a press release, Zamzama-2- an appraisal well located
3.51bn South of the Zamzama-1 exploration well drilled to a total depth of 3933m and
encountered hydrocarbons in the Khadro and Pab formations. Subsequent pressure testing and
wireline log data confirmed a combined gas column in excess of 350
Coal-based power generation
Pakistan should exploit the vast reserves of high quality coal in Thar
and Lakhra (Sindh) as a cheap source of power generation, says Ahmaduddin Hinjra, Head of
the Sindh Coal Authority (SCA).
Hinjra said these huge coal reserves should be utilized to replace
oil-fired plants. Quoting a recent study in the United States he said that coal fired
plants are a cheaper source of power generation than the gas-fired or oil-fired
plantscosting 1.6 cent per kilowatt hour, 2 cent and 2.5 cents respectively.
Pasni power project to be functional next year
The second and final phase of power project at Pasni along Balochistan
coast is expected to be fully functional by next year with the provision of more than Rs
256 million made for the purpose, official sources said here Friday.
Pasni power plant involves total development outlay of Rs 1,165m
including Rs 500m British aid.
ITP for Opal glassware
Omer Glass Industries Limited have represented to the Central Board of
Revenue regarding correct ITP for glassware. According to the representation, the
manufacturers have stated that they are the manufacturers of opal glass dinner sets in
Pakistan as previously all country's demand was met either through illegal channels i.e.
smuggling or brought under personnel baggage and were mostly of French, Korean and
Japanese origin. The production of Opal glass dinner sets has discouraged smuggling and
country is saving a lot of foreign exchange. The company is facing teething problems as
expertise for this technology is not available in Pakistan. The Company is also
encountering marketing problems due to import of pyrex glassware. This import is causing
considerable loss to the national exchequer as the ITP unit value of the product has been
fixed at almost 50 percent of the international standard price. The ITP fixed for pyrex
type dinner sets is US $18 to US $20.25 per set against actual price of US $34 to US $65.