The Oil and Gas Development Company Limited (OGDC) has rejected Privatisation Commission's plan to raise $1.1 billion for it from international investors through 'equity linked bond' for its development projects. OGDC's latest communication to the Privatisation Commission stated that that it was the ministry of Petroleum and Natural Resources' job to workout such a proposal to raise funds if necessary for a subordinate department like OGDC and not the Privatisation Commission.
OGDC's communication, duly singed by Aftab Ahmed Executive Director Strategic Business Planning, a copy of which was made available to Business Recorder, said, "based on the on-going activity OGDC does not feel the requirement to raise the suggested funds of $1.1 billion through proposed equity linked bond for which Privatisation Commission's consultant gave a detailed presentation to OGDC officials".
"OGDC feels that the entire idea of floating equity link bond for raising funds for it seems to push this key public sector oil and gas exploration and production company toward a debt trap," it added. The OGDC also pointed out many ifs and buts in Privatisation Commission's plan and made it clear that it does not need any financial support enfolded in the plan.
It noted that OGDC was a public sector exploration and production company with a clear mandate and responsibilities. It reminded Privatisation Commission to mind its own business instead of focusing on OGDC's financial requirement and whenever it will have any requirement for additional funds it will definitely move the proposal to its parent ministry, Petroleum and Natural Resources.
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