Cabinet allows Mari Petroleum to remove cap on dividend
The Federal Cabinet on Tuesday ratified a decision of ECC by de-capping the dividends on the shares of Mari Petroleum Company Limited (MPCL), a member of the Cabinet told this correspondent.
Earlier, the Economic Coordination Committee (ECC) has allowed Mari Petroleum to remove the cap on dividends’ distribution. ECC approved it in the meeting held on Wednesday.
The Petroleum Division also moved a summary for the removal of the Dividend Distribution cap on Mari Gas Company Limited (MPCL) under the Gas Pricing Agreement as the government is considering selling its own shares.
After due deliberation, the ECC allowed removing the cap on that the dividend distribution to ensure that the divestment transaction generates optimum sale proceeds for the Government.
The Committee further decided that MPCL would ensure dividend distribution in accordance with the provisions of the Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.
Earlier, the Petroleum division had assured stakeholders of moving a summary to the economic coordination committee (ECC) allowing Mari Petroleum to remove the cap for dividend distribution.
Special Assistant to Prime Minister on Petroleum Nadeem Babar earlier informed the meeting held on the divestment of shares that the petroleum division would place a draft summary before the economic coordination committee (ECC) of the cabinet to remove the cap for distribution of dividend by Mari Petroleum in next fortnight.
He said that the petroleum division would seek approval of the minister for energy Omer Ayub before drafting a summary before the cabinet’s economic coordination committee.
The ECC to allow Mari Petroleum to remove dividend’s cap Babar informed this during a meeting privatization commission held on the divestment of government of Pakistan residual shares in Mari Petroleum Co. Ltd (MPCL).
Minister for privatization had chaired a meeting whereas officials of petroleum and representatives of Oil and Gas Development Company Limited (OGDCL) and Mari Petroleum attended it.
During the meeting, officials informed the joint venture partners-OGDCL. Mari Petroleum had agreed to bear the cost of procuring an audit certificate for an independent and fair assessment of the share value by the company’s auditor.
They further informed that partners would bear the cost in line with their respective shareholdings.
The government advised the Mari petroleum management to undertake the preliminary work for engagement of its auditors and share the correspondence terms of reference (ToRs) with JV partners to seek their input if any. The Mari Petroleum has recently announced 600 per cent higher dividends after removing cap.
