Qualification of some of groups/consortiums with no background of oil marketing and request for more time will be two hot issues at PSO pre-bid meeting, scheduled here on Wednesday.
An official of the Privatisation Commission told Business Recorder on Tuesday that pre-bid meeting would decide request of some of the consortiums for more time to get ready to contest for acquiring 51 percent Pakistan State Oil (PSO) stakes.
He conceded that more than one qualified consortiums have approached to the Privatisation Commission for grant of more time for contesting for PSO. The official, however, did not disclose the names of the consortiums, which requested for more time.
Sources in British Petroleum (BP), one of the hot favourites for PSO, is among the qualified parties, which requested the Privatisation Commission for more time. They said that BP's board is scheduled to meet on June 29 to grant a go-ahead to its officials for PSO bidding.
Some qualified consortiums are likely to raise the issue of qualification of some groups/ consortiums with no oil marketing background. Privatisation Commission has qualified some parties for PSO against its declared policy of keeping away those, which do not have the same background.
Vittol, a European trading house, is one of such parties. Vittol trading house does not meet the condition of oil marketing background. Petroleum ministry's record shows that Vittol trading house was a major oil supplier to Pakistan for one and half decades in pre-regulated regime.
Similarly, Glenco Group of Switzerland, is also a trading house and it does not come in the category of oil marketing company. Baqri Group, another among qualified parties for PSO, had some serious problem in the past as Irfan Puri, its local faced NAB trial. He got clearance later on as a result of a deal with NAB.
An official handout issued here by Privatisation Commission said, "In order to respond to the queries of the pre-qualified potential bidders, who have already completed due diligence of PSO transaction a pre-bid meeting is schedule on Wednesday here on June 20. The Privatisation Commission has offered 51% equity stakes in PSO with management control to a qualified strategic investors.
PSO is the largest oil marketing company ("OMC") in Pakistan and is engaged in the storage, distribution and marketing of petroleum products, Liquid Petroleum Gas, Compressed Natural Gas and petrochemicals.
As of 30 June 2004, PSO has more than 3,800 retail outlets spread across the country with over 60% market share in POL products sold. PSO's total storage capacity of approximately 860,000 metric tones accounts for 81% of total national storage. PSO serves a broad customer base throughout the country including the retail and industrial, aviation, marine and Government/Armed Forces Sectors.
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