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OGDCL to bid jointly for BP Pakistan assets
7 December 2010: Oil and Gas Development Company (OGDCL) is likely to make a joint bid for BP’s assets in Pakistan with Pakistan Petroleum (PPL).
BP announced its plans to sell its upstream assets in Pakistan in July, as part of a $10 billion (approx Rs 4,500 crore) global asset sale aimed at raising cash to pay for its Gulf of Mexico oil spill.
OGDCL already has some stakes in BP’s Pakistan assets.
PPL is reportedly Pakistan’s second-largest listed firm by market value. BP’s upstream assets and related operations, which it plans to divest, include nine producing and exploration onshore blocks and four offshore exploration blocks in the Arabian Sea, according to official sources.
BP’s main assets are in Badin in the southern Sindh province, comprising four concessions – Badin-I, Badin-II , Badin-IIR and Badin-III.
Of the four concessions, OGDCL has pre-emptive rights in all but Badin-I block, a source said last month. They also said then that if it wins, OGDCL will not seek direct involvement and will operate the acquired assets through a company, jointly owned by it and PPL.
Source: Dawn