Govt shelves plan to privatise Mari Petroleum Company

ISLAMABAD: The government on Friday shelved plans to privatise its stakes in Mari Petroleum Company Limited, a statement said.

“After a comprehensive deliberation, the committee (Cabinet Committee on Privatization (CCOP)), decided that Mari Petroleum Company Limited may be omitted from the list of privatization,” the statement issued after the committee meeting said.

Finance Minister Shaukat Tarin chaired the meeting of CCOP. The meeting was attended by Minister for Privatization Muhammad Mian Soomro, Minister for Energy Hammad Azhar, secretary finance division, secretary Privatization Commission, secretary petroleum division and other relevant officers.

The government had initially planned to divest up to 18.39 percent of its shareholding in Mari Petroleum Company Limited.

Sources said the petroleum ministry was not in favour of divestment in Mari Petroleum and had asked CCoP to delist it from the active privatisation programme.

Mari Petroleum is a fully integrated exploration and production company of the country, currently managing and operating the country’s largest gas reservoir at Mari field in Ghotki district of Sindh.

Fauji Foundation holds 40 percent of the shareholding in MPCL along with management rights, while the government, OGDCL and general public holds 18.39 percent, 20 percent and 21.6 percent of the shareholding, respectively.

The statement said the CCoP also discussed the proposal submitted by privatization division for debt recapitalisation and refinancing of government’s excess equity and PDFL loan through commercial borrowing of National Power Park Management Company Limited (NPPMCL).

“The committee approved the proposals that NPPMCL shall initiate debt recapitalization and refinancing process as per Companies Act, 2017 and all government stakeholders to jointly support the NPPMCL to implement and execute the process of debt recapitalization and refinancing from local banks.”

The meeting also directed to revisit the interest rate of K +1.80 percent through competitive bidding.

The committee also discussed the summary for the privatization of Guddu Power Plant and Nandipur Power Plant and directed ministry of Energy for obtaining decision of CCoE for the privatization of above two power plants.

Privatization divisions and ministry of Energy were further directed to prepare and share the roadmap for the valuation of the assets of these power plants and modus operandi for transfer of assets.

The CCoP discussed the summary for the privatization of SME Bank Limited and delisting of SME Bank Limited from Privatization Commission.

“The meeting, after detailed discussion, constituted a committee under the chairmanship of Finance Minister and representatives from SBP, SECP, Finance Division and Privatization Division to evaluate alternative options for proceeding further.”