According to officials aware of the development, the new managing director of PPL has decided to undertake asset management activities, which means that the company’s production and reserves will be split into smaller assets such as Sui, Kandhkot, Adhi and Gambat fields.
In the past, efforts were also made to sell PPL to local investors to allegedly serve the vested interests of people sitting in the power corridors during the governments of Benazir Bhutto, Asif Zardari and Nawaz Sharif. However, no deal could be struck.
“The biggest hurdle is the size and asset strength of the company and only a multinational exploration and production firm can buy it,” an official said.
The present government was trying to find a way to sell the company in bits and pieces to its favourites, he said.
PPL is worth over $2 billion in terms of oil and gas reserves, in addition to assets on the surface. The company is the owner and operator of working interest in about 30 oil and gas fields including the prized Sui, Kandhkot and Adhi fields. It has about 50 exploration blocks that are spread across the country.
PPL was recently included in the privatisation list after a gap of nine years and new Managing Director Syed Wamiq Abrar Bokhari has started taking decisions that could lead to its sale to local investors.
According to the official, the MD decided that there were security concerns and issues with the Balochistan government in relation to the Sui field, therefore, the government would first sell the Adhi field, followed by Kandhkot, Gambat South and non-operated joint ventures. This way, PPL’s operations will be limited to the Sui field.
He decided to pay gratuity to the staff and undertake steps to abolish the gratuity scheme. Attempts were also being made to end the pension scheme.
The company this year gave only 3% annual pay rise whereas the government announced a 7% increment. Now, it is actively working on doing away with the medical facility schemes. As a result, liabilities of the company will fall significantly and investors would have to clear no liabilities after privatisation.
The head office of the company is being shifted to Islamabad and in the beginning two assets have been moved. Its purpose is to reduce the staff strength and streamline things for the prospective buyer.
Not only in PPL, the Ministry of Petroleum and Natural Resources appointed managing directors in all other state-owned oil and gas companies in order to comply with the Supreme Court order.
However, contrary to the newspaper advertisements given for other companies, the maximum age limit in PPL’s case was set at 55 years with flexibility up to 57 years if the applicant had extraordinary credentials. This, the official said, was aimed at keeping Asim M Khan and Khalid Rahman (former managing directors of PPL) and other experienced candidates from applying for the post.
For other companies, qualified professionals with requisite experience, even above 60 years of age, could apply for the slot.
