Pakistan begins privatization of OGDCL; issues IPO

Nov. 18, 2003
Pakistan soon plans to invite expressions of interest for the sale of 51% of its state-owned exploration and production company, Oil & Gas Development Co. Ltd. (OGDCL) to a strategic buyer or buyers.

By an OGJ correspondent

KARACHI, Nov. 18 -- Pakistan soon plans to invite expressions of interest for the sale of 51% of its state-owned exploration and production company, Oil & Gas Development Co. Ltd. (OGDCL) to a strategic buyer or buyers.

The sale will follow on the heels of an initial public offering of 107.5 million shares of OGDCL at 32 rupees/share (about 45¢/share) issued through the Karachi, Lahore, and Islamabad Stock Exchanges. The IPO represents 2.5% of the company, along with a green shoe option of an additional 2.5 % in case of oversubscription (OGJ Online, Nov. 17, 2003).

Financial and technical prequalification has begun for sale of the 51% interest, and an official of the privatization commission said the government is still entertaining fresh interest by prospective investors.

OGDCL, the largest E&P company in Pakistan's oil and gas sector, owns developed and producing fields comprising 35 operated fields, including four major developed gas fields, and 15 nonoperated interests, the privatization commission said. As of June 30, proven and probable reserves of its operated portfolio were 9.228 tcf of raw gas and 164.25 million bbl of oil.