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Oct 09 - 15, 2000

Gas sale accord next week

Another gas sales purchase accord (GSPA) is likely to be signed when the President of OMV, an oil and gas exploration company operating in Pakistan, arrives next week.

The accord for the sale of gas from Sawan oil field in Sukkar will be the fifth GSPA with foreign oil exploration companies. An accord with LASMO for the development of Bhit field is also expected.

OMV was negotiating an accord with the government and SSGC for the development of Sawan field. Gerhard Roiss, President Exploration and Production of OMV, and Helmut Langanger senior vice president, exploration & production will arrive in Pakistan on 8th of this month.

The government and oil and gas companies had different views on the sales of gas. The companies first disputed the package for the sales of gas. However, with the passage of time out of six companies which discovered gas in Pakistan, four have already signed the agreements and fifth has been lined up.

The GSPA signed by the government so far are, Miano GSPA with OMV led joint venture; Zamzama GSPA with BHP led joint venture; Badin-III GSPA with UTP led joint venture and Block 22 joint venture; Badin-III with UTP-led joint venture and Block 22 GSPA with PPL led joint venture.

OMV Pakistan, a subsidiary of OMV, an Austrian company. The group entered in oil and gas exploration activities in Pakistan in '90 and has invested more than $200m in this country.

At present OMV is operating three Exploration Licences and two Development and Production Leases. The Miano gas field discovered in '93 near Sukkur plans production by mid next year.

The OMV delegation will hold meetings with senior officials of ministry of petroleum and natural resources and other exploration & production companies operating in Pakistan.

1,500 bulldozers offered under barter

A Russian firm has offered to provide 1,500 bulldozers under barter exchange to Pakistan on very competitive prices, officials of the agriculture ministry told.

The firm has expressed desire to import food items from Pakistan against the price of bulldozers.

The firm, Traktoroexport said, bulldozers can be delivered over a period of three years or according to agriculture ministry's procurement schedule at $27,000 per piece for 100 HP and $66,550 per piece for 180 HP bulldozer. In case of cash, the firm has offered to sell them at $24,800 and $60,500 per piece. In case, Pakistan pays 30% cash and 70% under barter, the firm will sell these bulldozers at $ 31,000 and $ 75,625 per piece respectively.

ECGS to be operational by year-end

The Export Credit Guarantee Scheme (ECGS) being drawn up by the federal government is likely to become operational by the end of this year.

The scheme is being put in place to facilitate the export- oriented small and medium enterprises (SMEs), especially the information technology (IT) firms, facing difficulties in obtaining credit from the banks because of lack of collateral.

Once the scheme becomes operational, the SMEs will be able to secure credit from the banks and finance institutions against guarantees provided by the ECGS.

The scheme will have an equity of $10 million expected to be contributed by the Asian Development Bank (ADB), the International Finance Corporation (IFC) and commercial banks.


Indonesian envoy to Pakistan Jack Said Gaffar said Wednesday Indonesia intends to establish warehouses in Rawlpindi and Karachi using Pakistan for her entry to Central Asian States.

Tariff row between Chinese firm, WAPDA

A dispute has cropped up between a Chinese firm, engaged in the construction of Ghazi Barotha Hydel Power Project, and Wapda over power tariff, a government official told.

Brig Mohammed Zareen, the general manager of Ghazi Barotha project, said that the Dongfong Electric Corporation of China had taken the issue to the dispute review board. The board, set up under the provision of the contract to settle disputes, comprises a representative each from Wapda and the Chinese contractor as well as a member of the International Chamber of Commerce and Industry.

Rafhan BestóLever Brothers

A copy of a joint press release issued to the three stock exchanges, by Lever Brothers Pakistan and Rafhan Best Foods Limited on Tuesday, confirmed that the agreement for merger of Bestfoods with Unilever had been approved by the shareholders of both companies on October 2, after clearance from the regulatory authorities in US and EU.

Refineries asked to cut crude oil throughput

The government has asked the local refineries to cut crude oil throughput from October because of surplus motor gasoline production as a result of commissioning of PARCO refinery near Multan from last month.

"We have started curtailing the throughput from Monday", an official in one of the local refineries told on Monday. The other refineries will follow the suit in a day or two.

Export facilitation

With a view to ensure export facilitation by quick clearance of the export consignments and speedy disposal of duty drawback claims, the Collectorate of Customs (exports) has initiated a 'skill development programme' to enhance the level of efficiency of its staff and officers.

The programme includes lectures by prominent exporters on various aspect of manufacture, value addition and quality control of numerous export commodities.

Single-grade petrol

Single-Grade Petrol (87 Octane) is being introduced throughout the country from Sunday which will give more mileage to consumers at lesser cost.

The ministry of petroleum and natural resources had long been considering to improve the specifications of the petroleum products with the objectives of reducing environmental pollution, optimizing petroleum logistics and infrastructure and increasing fuel efficiency and benefits to consumers.