PPL stakes may be offered at Rs 55 per share

The Privatisation Commission (PC) is likely to sell shares in Pakistan Petroleum Ltd at Rs 55 per share by next month, moving as per schedule set at the start of the current fiscal year.
Pakistan Petroleum Limited (PPL) is one of the pioneer exploration and production (E&P) companies in Pakistan oil and gas sector.
The Government of Pakistan is divesting its shareholding through local stock exchanges. The offer is of 10 percent shares of the company, that is 68.58 million shares, with green-shoe option of another 5 percent at an offer price of Rs 55 a share, according to sources close to capital market.
The company is also up for strategic sale where the government is offering 51 percent shares of the company under its divestment plan. At present, GOP holds about 93.36 percent shares of the company.
PPL is the pioneer in the exploration business in Pakistan which commenced operations in July 1952.
The company discovered its major gas field in 1952 at Sui in Balochistan, which still contributes major part of its net revenues.
Apart from Sui, the company holds operator-ship of major producing fields of Kandhkot, Adhi and Block 22 while its non-operated portfolio includes assets such as Qadirpur, Miano Mazarani and Sawan.
In addition Tal (non-operated) field is currently in the development phase and expected to be commissioned during calendar year 2005.
The Company's exploration portfolio includes operated and non-operated joint ventures in 9 onshore blocks and 2 offshore blocks.
PPL is the successor company of Burmah Oil Company, which held majority stake of 70 percent with government owing 29.4 percent shares.
Burmah Oil sold its 6.09 percent shares to IFC in 1982 and remaining to the government in 1997.
PPL holds joint ownership with the Government of Balochistan in Bolan Mining Enterprises (BME), which is involved in the business of mining exploratory well-drilling grade barite powder.
BME is the operator of the Gunga barites mine in Balochistan having remaining recoverable reserves of 0.77 million tons, as of January 1, 2003.
The proven plus probable remaining recoverable reserves (2P) of PPL operated and non-operated interests as of June 1, 2003 were 4.199 trillion cubic feet gas and 9.07 million barrels oil.