UPDATE: OGDC Seeks Deadline Extension On Bid For BP Pakistan Assets
December 07 2010 - 2:12AM
Dow Jones News
Pakistan's national oil firm Oil & Gas Development Co.
(OGDC.KA) has sought an extension from BP PLC (BP.LN) on a deadline
for submitting bids for BP's assets in Pakistan, OGDC's chief
executive officer and managing director Naeem Malik said
Tuesday.
"We haven't submitted a bid yet. We've sought an extension for a
few days," Malik told Dow Jones Newswires.
The company, which was due to submit a joint bid with Pakistan
Petroleum Ltd. (PPL.KA) on Monday, instead sought an extension
pending hearing in the Supreme Court today in a case that questions
the merits of the acquisition by state-run OGDC, a company
executive said.
The case was filed by an opposition party, contending the deal
should be thoroughly reviewed, said the executive, who didn't wish
to be named. "It's not a political issue, but they are making it a
political issue. It's up to the court now."
The company will make its submission to the court Tuesday, Malik
said.
Both the OGDC executives didn't elaborate on whether the company
was given an extension for the bid deadline or for how long.
It wasn't yet clear how the delay in submitting bids will affect
prospects of OGDC, which was viewed as one of the leading
candidates to buy the assets after another top contender Premier
Oil PLC (PMO.LN) hinted last month at pulling out of the race.
Premier CEO Simon Lockett said on Nov. 11 the company looked at
the assets but probably wouldn't bid.
BP has put its Pakistan assets on the block as part of a global
campaign to help raise funds to cover the estimated $40 billion
cost of the Gulf of Mexico oil spill.
Media reports have cited UBS analysts as estimating BP's
Pakistan assets at $690 million in a research note.
A BP spokesperson in Pakistan wasn't available to comment.
-By Gurdeep Singh, Dow Jones Newswires; 65-6415 4064;
gurdeep.singh@dowjones.com