OGDCL seeks Mari, PPL’s shares transfer to clear debt
Aftab Ahmed
The Oil and Gas Development Company Limited (OGDCL) has come up with a plan of transferring the government’s shares in Mari Petroleum and Pakistan Petroleum Limited (PPL) to it in a bid to clear the circular debt.
It has proposed to transfer share transfer of Rs profitable companies that would result in settling Rs 200 to Rs 250 billion circular debt.
At present, the government’s equity in the blue-chip companies is as Mari Petroleum Limited 18.39 percent and Pakistan petroleum Limited (PPL) at 67.51 percent.
Moreover, it wants the government to confirm its intention for selling its shareholding in blue-chip companies to OGDCL at the current market value. Meanwhile, the government of Pakistan will discuss the proposed transaction with the competition commission of Pakistan (CCP) and address their concerns if any. Subsequently, it will also intimate the Securities Exchange Commission of Pakistan (SECP) and stock exchanges of its intention to undertake the intention.
The body formed by the Economic Coordination Committee (ECC) is currently working on a mechanism to settle the circular debt in the energy sector. The proposal has been tabled before the committee.
https://newztodays.com/ogdcl-to-supply-additional-gas-to-engro-fertilizer-plant/
Earlier, OGDCL had informed the Petroleum Division that it was facing a circular debt of Rs 400 billion. The management of the country’s largest oil and gas explorer has expressed serious concerns in a note sent to Petroleum Division.
Gas companies, power plants, and refineries have accumulated payment of Rs 400 billion to OGDCL. This includes a late payment surcharge as well.
The Gas companies-SSGCL, SNGPL are major defaulters of OGDCL. SSGCL is taking the lead among the defaulters. It has to pay Rs 192.49 billion dues against the supply of gas. It has to pay the actual bill of Rs 132.96 billion. Whereas the payment on account of late payment surcharge stands at Rs 59.52 billion.
Sui Northern Pipeline Limited (SNGPL) is the second major defaulter. It has to pay a bill of Rs 133.52 billion. This amount included Rs 24.89 billion late payment surcharges and Rs 108.63 billion actual amount. UPL pays Rs 38.817 billion amount, which included Rs 4.8 billion late payment surcharges and Rs 34.01 billion principal amount.
OGDCL supplies crude oil to local refineries. Attock Refinery Limited (ARL) is the main customer of OGDCL. Refineries are to pay Rs 35.94 billion to OGDCL. This bill includes Rs 8.5 billion principal amount whereas Rs 27.7 billion late payment surcharge.
