. .


May 08 - 21, 2000

  1. International
  2. Finance
  3. Industry
  4. Policy
  5. Trade
  6. Gulf

Oil, gas operation accord signed

The Government awarded a licence for undertaking oil and gas exploration activities in East Kadanwari Block No. 2669-2 covering 1021.93 sq kms in Sukkur and Khairpur districts to Petronas Carigali (Pakistan) and Lasmo Oil Pakistan, says a press release.

Simultaneously, petroleum concession and joint operating accords were signed between the parties. Through a separate accord, Petronas acquired from Orient Petroleum Inc. 75% working interests along with operatorship of Mehar Block located in Dadu (Sindh) and Khuzdar (Balochistan).

Petronas wil1 be the operator with East Kadanwari enjoying 57% working interest while Lasmo and Government Holdings will own 38% and 5% (carried) interests respectively. East Kadanwari block was awarded through competitive bidding.

Under East Kadanwari accord, the joint venture is to acquire 150 line kms 2D seismic data and will drill a well with minimum expenditure obligation of $3.5m during the initial three years term.

Under Mehar accord, Petronas will be operator of Mehar Block with a 75% working interest while Orient Petroleum will retain 20% and the Government Holdings will enjoy 5% (carried) working interests.

The joint venture is expected to acquire 250 line kms 2D seismic data and will drill two wells with minimum expenditure obligation of $4.3m during the initial three years term.

At the signing ceremony, Petronas was represented by Dato Mohammad Idris bin Mansor, vice president, while Lasmo Oil was represented by its Exploration and Business Manager John Warburton.

Abdullah Yusuf, Secretary Ministry of Petroleum and Natural Resources signed on behalf of government of Pakistan while Shahid Ahmad, Director General, Petroleum Concessions signed for the Government Holdings and John E. Kennedy, President, signed on behalf of Orient Petroleum.

PC to hire lead managers

Privatization Commission will meet on May 13 to appoint lead managers for off loading shares of Sui Southern Gas Pipe Line Ltd (SSGPL) and National Bank of Pakistan (NBP) at the stock markets, an official said.

The expression of interests for appointment of these managers were invited earlier this month and a 12 companies have submitted them, the official said.

The managers would get SSGPL and NBP registered at stock markets and gradually off load shares of these two entities, he added.

The managers will also be appointed for the sale of remaining shares of Allied Bank of Pakistan and Muslim Commercial Bank, he said.

Pakistan and Libya to strengthen economic ties

Libyan Foreign Minister Abdul Rahman Mohammed Shalqum held first round of official talks with his Pakistani counterpart Abdul Sattar at the Foreign Office and they agreed to add economic content to their relations.

Both sides agreed to take necessary steps to add, "greater economic substance to their relations" and decided that the next meeting of the Pakistan-Libya Joint Ministerial Commission will be held in Islamabad at the earliest.

"The talks covered the entire range of bilateral matters as well as regional and global issues of mutual interest, especially Kashmir and Afghanistan," said a Foreign Office statement after the talks.

Shalqum and Sattar will meet again on Friday to carry forward their bilateral talks. Libyan Foreign Minister flew into the Federal Capital late Tuesday on 6-day official visit to Pakistan.

Palmoil yield to decline

Country is facing a serious setback in sunflower yield this year with its size falling almost 100 per cent from the last year.

Sources close to soft-oils business told that sunflower oil produce would hardly be 200,000 ton this season as compared with little over 400,000 of last year's.

"The reduction has fully exposed claims of the Pakistan Oilseeds Development Board that the country would take a big leap in soft-oils area reducing its dependence on palmoil and soyabean oil import.

Privatized co runs into losses

Securities & Exchange Commission of Pakistan (SECP) has ordered an investigation into the affairs of M/s Pakistan PVC Ltd which has shown only losses and paid no return to its shareholders ever since its privatization in 1992.

Yet, the same company had earned a net profit of Rs 20.347m in the year preceding its privatization, according to the order issued by the SECP Commissioner (Enforcement & Monitoring).

Listed on the Karachi and Lahore Stock Exchanges in '65, the principal activity of the company with a paid-up capital of Rs 49.86m was to produce and sell resin, pipes and fittings, compound and caustic soda.

In the very first year of transfer of management to private sector, the company showed a loss of Rs 81.78m. By the year ending June 30, '99, its current liabilities stood at Rs 493.6m against the current assets of Rs45.2m.

Steel industry hit by imports

Despite ample of domestic re-rolling capacity, precious foreign exchange has been spent by the Ghazi Barotha contractors for the import of steel bars, industry sources said.

Sources said that during past one year over $13.70 million had been spent on import of around 55,000 tons of deformed steel bars which otherwise could have been easily supplied by the local re-rolling industry.