Pakistan Approves Revised Bid for Badin Field

Pakistan's top privatization body has approved the sale of the government's 40% stake in the lucrative Badin-1 oil field for $143 million to a consortium comprising BP Pakistan Exploration & Production Inc. and Occidental Oil & Gas Pakistan LLC. A statement by the Cabinet Committee on Privatization said the bid was approved after the consortium raised their offer from $131.5 million.

According to the statement, the committee also approved the sale of the government's 20% stake in Turkwal field to Attock Oil Co. after the company agreed to raise the offer to $2 million from $1.6 million.

Last month, the Privatization Commission sold minority government stakes in five oil fields for $42.89 million. The sales mark the most significant privatization deals in the energy sector since September 11th as Pakistan's privatization efforts were stalled following the terrorist attack in the U.S. and the consequent conflict in neighboring Afghanistan.

Pakistan produces only 56,000 barrels of day of oil, far short of the country's domestic demand of 385,000 barrels per day. More than 40% of the oil produced comes from the Badin oil field, which is run by Union Texas.