ECC allows Mari Petroleum to remove dividend’s cap
Aftab Ahmed
The Economic Coordination Committee (ECC) has allowed Mari Petroleum to remove the cap on dividends’ distribution.
ECC approved it ints the meeting held on Wednesday.
Petroleum Division also moved a summary for removal of Dividend Distribution cap on Mari Gas Company Limited (MPCL) under Gas Pricing Agreement as the government is considering to sell 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.
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-OGDC. 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.
On the recommendation of the Ministry of Housing and Works, the ECC allowed the Ministry to utilize its own funds equal to Rs. 377.21 million for renewal of the lease of Garden West (Pakistan Quarters), Karachi.
The ECC considered and approved another summary by the Petroleum Division for re-allocation of gas from Saqib-1A Well located in District Ghotki, Sindh Province to M/S Sui Southern Gas Company Limited from its previous allocation to SNGPL (as approved earlier by the ECC dated 06-10-2009). The price of gas will be as per the applicable Petroleum policy.
The following Technical Supplementary Grants (TSGs) were approved by the ECC:
a) 141.308 million to the Ministry of Information and Broadcasting for an expenditure incurred on media campaigns to create awareness among the public during the Covid-19 pandemic.
b) 9.025 million to the Ministry of Information and Broadcasting for a media campaign on the occasion of Kashmir Solidarity Day – 05 Feb. 2021.
c) 5 million for purchase of spare parts for helicopter maintenance by HQs Pakistan Rangers (Punjab).
d) 25 million for purchase of spare parts for helicopter maintenance by HQs Frontier Corps Balochistan (South).
e) 10 million for repair and maintenance of helicopter by HQs Frontier Corps KP (South), D.I.Khan.
