Mar 18 - 24, 2002
Oxy intends to invest $150m
John Winterman, executive vice president of Oxy
Petroleum Company USA, has said that his company intends to make a
further investment of $150 million in the petroleum sector of the
He expressed these views during a meeting with the
Federal Minister for Petroleum and Natural Resources, Usman Aminuddin,
He also briefed the minister about the pace of work
on the ongoing exploration and production activities in Pakistan being
carried out by the company. He said that Oxy was looking forward to
enter joint venture arrangement for possible exploration in the
offshore area and expressed company's willingness to participate in
the privatization activity in Pakistan.
Usman Aminuddin told Winterman that Pakistan was
bestowed with rich hydrocarbons resources and invited the company to
expand its activities in the upstream sector for which the government
had already provided an attractive package of incentives under the
Petroleum Policy, 2001.
The minister highlighted the government's efforts
to open the areas for exploration in Balochistan which hopefully would
bring about positive change. He also said that the emphasis of the
government was to exploit all available gas resources so as to
substitute imported fuel oil as much as possible thus easing the
burden on national economy.
By June 2003, he added, an additional gas of one
billion cubic feet per day would also be available in the country from
the newly discovered fields. Usman applauded the historic contribution
of Oxy Petroleum in the development of upstream sector in Pakistan
during the last 20 years with investment of $800 million.
Fabric exporters profit plunges
Fabric exporters say the reduced unit price in the
international markets and the abrupt appreciation in the value of the
rupee against the dollar following the Sept 11 events has drastically
eroded their profits in the second quarter of the current fiscal year.
Our viability has been hit very hard since the Sept
11 events although exports (of all types) of fabrics, including grey
cloth, have gone up 9.7 per cent in terms of quantity in the first
seven months of the current fiscal year (July-Jan) over the same
period the previous year, leading fabric exporter Javed A. Siddiqui
told on Saturday. On the other hand, the average unit price plunged by
9.4 per cent in the same period to $0.60 per square meter from the
last year's $0.66.
In the first seven months of the current fiscal
year, Pakistan exported 948 million square metre of fabric worth
$568.100 million as against 864 million square metre for $567.446
million during the same period last year.
12 ICP funds offered for sale
The Privatization Commission revised on Thursday
the number of Investment Corporation of Pakistan (ICP) Mutual Funds
being offered for sale the management rights for 12 of ICP's funds as
a single block rather than six.
The Privatization Commission issued a statement on
Wednesday inviting bidders for the management rights for a block of
six ICP Mutual Funds, but issued a "corrected" statement on
Thursday advertizing the sale of management rights for 12 funds.
The statement said parties interested in buying the
management rights of 12 of ICP's funds as a single purchase should
express their interest by April 6.
Oil dealers' margin up
The government has approved increase in oil
marketing companies' distribution margin from two per cent to 3.5 per
cent and petroleum dealer's commission from three per cent to four per
cent, it is learnt on authority.
SSGC to float Rs1bn TFCs
Sui Southern Gas Company Limited (SSGC) will launch
Term Finance Certificates (TFCs) worth Rs1 billion in May this year to
finance its gas infrastructure, rehabilitation and expansion projects.
A senior executive of the SSGC told that the issue
of TFCs is expected to be launched in the first week of May. This
would be the second issue of the TFCs of same worth, which launched in
May 2001 by the company.
ADB plans to set up SME risk capital fund
The Asian Development Bank (ADB) is in the process
of preparing a comprehensive development programme for Pakistan's
small and medium enterprises (SMEs).
Under the programme, the ADB is likely to set up an
SME risk capital fund. This was stated by the executive director, SME
Institute of Finance, Washington D.C. David Lingelbach, at a meeting
with FPCCI, chairman, Islamabad office, Sohail Altaf on Saturday.
Mr David said the prime objective of his current
visit was to create awareness in and get input from the private sector
to prepare a feasibility study to set up a fund in Pakistan.
The US dollar rose to Rs60.40/Rs60.50 for spot
buying and selling in the kerb market on Thursday up 15 paisa from the
previous close of Rs60.25/Rs60.35 as supply fell short from Dubai.
"The dollar supply from Dubai has
fallen," said Ovais Kalia of Khanani & Kalia International
who insisted to be identified as an analyst for KKI.
Shell Gas LPG
Shell Gas LPG (Pakistan) Limited — the Liquefied
Petroleum Gas (LPG) marketing company — plunged into a loss of
Rs18.1 million for the first half of the year to end-December 2001,
from a profit of Rs11.4 million in the corresponding period of the
Top line growth remained impressive 29.7 per cent,
with sales valued at Rs188 million for the latest half, against
Rs144.6 million in the same period of 2000. But the gross profit
dipped to Rs3.8 million, from Rs33.6 million and the margin stood
almost completely wiped out at 2.1 per cent, from 23.4 per cent.