Islamabad the 5th March, 2020
Federal Minister for Privatization chaired a meeting of key stakeholders to discuss the divestment of upto 7% shares of Oil and Gas Development Company (OGDCL) here in Islamabad today. Senior officials from OGDCL, Ministry of Petroleum and Ministry of Privatization attended the meeting.
Cabinet Committee on Privatization (CCoP) in its meeting held on 08 August 2019 had decided to divest up to seven percent Government owned shares of the OGDCL. The purpose for divestment of the shares is to generate non-tax revenue to retire national debt and also to give investors an opportunity to be part of the profit making PSE. Prime Minister in a recent meeting had also stressed that privatization process to be accelerated.
Federal Minister during the meeting discussed the share price trend of OGDCL in the capital market and also the extent to which the capital market is conducive for such divestment of shares. The option of strategic sale of up to 10% shares of OGDCL was also deliberated upon and it was decided that the better option would be the strategic offering of up to 10% shares to international reputable exploration and production (E&P) companies. This likely to have multi facet benefits including opening of E&P sector for FDI and for inducting of new expertise in largest national oil company of Pakistan. Accordingly it was decided the matter should be submitted before upcoming CCoP meeting. The meeting also reviewed the existing process and progress for divestment of the shares of Pakistan Petroleum Limited (PPL).
In the meeting de-capping of dividends of Mari Petroleum Company limited (MPCL) was also deliberated. It was also decided the matter to be placed before upcoming ECC by Petroleum Division with the all associated aspects of decapping of dividends.