IOC, GAIL eye stake in Pak gas companies

By agencies   |   Monday, 13 February 2006, 20:30 IST
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NEW DELHI: Domestic energy majors GAIL (India) Limited and Indian Oil Corporation (IOC) are keen to participate in the privatization of the two biggest gas companies in Pakistan, a newspaper reported. The two Pakistani companies being privatized are Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL), the Financial Express said. Although the final participation by GAIL and IOC will be subject to political clearance by the UPA government, senior petroleum ministry officials confirmed that the two companies have expressed their willingness to submit expressions of interest (EoIs). The possibility of a joint EoI by GAIL and IOC too was not being ruled out, the paper said. “The petroleum ministry was informed of this opportunity by PricewaterhouseCoopers, the financial consultant to the government of Pakistan for privatizing SSGCL and SNGPL. It has asked the ministry to forward names of interested Indian companies,” the paper said quoting a senior official. Pakistan intends to divest 51 percent government holding along with management control in both SSGCL and SNGPL to qualified strategic investors. The last date to submit EoIs for the two companies is March 11. When contacted, a senior IOC official said, “We want to participate in the privatization process in Pakistan. The final decision, however, rests with the government.” A senior GAIL official, too, confirmed the company’s interest to venture into Pakistan, the paper said.