Earlier this week we heard of PSO warning the government of the upcoming power crisis if the case of circular debts is taken up. It is now learned that PSO gets enough founds to keep supplies on to the IPPs. Express Tribune report gives the details.
The finance ministry has released Rs12 billion on an urgent basis to Pakistan State Oil (PSO) in order to help the public-sector oil marketing company avoid default. The release comes a day after the PSO management suspended supplies of furnace oil to independent power providers Hub Power Company (Hubco) and Kot Addu Power Company (Kapco).
“The finance ministry released a payment of Rs12 billion to PSO today (Saturday) and has also given assurances that another Rs24 billion will be paid to the company by Tuesday, September 21,” the PSO spokesperson told The Express Tribune. “In light of the release and commitments, we are resuming supplies to Hubco and Kapco.”
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Fuel, Government, PSO, power
Fuel, oil, power, PSO
The case of unsolved circular debts will lead to major oil crises says Parco and PSO. This is a long pending issue and government should now step up to play its role in resolving before it becomes the reason of further loss to the economy. The business recorder news item gives the details.
The country’s oil sector’s largest giants, Pak Arab Refinery Limited (Parco) and Pakistan State Oil (PSO), have warned the government of an imminent massive oil crisis due to the unresolved circular debt problem and have urged it to arrange funds for import of petroleum products, Business Recorder has learnt reliably.
Parco has urged the government to arrange funds via PSO to save it from default on account of Letter of Credits (L/Cs) for the import of crude oil. Parco revealed that its bank borrowing was rising due to non-payment of dues by PSO with Rs 145.4 billion receivables against different clients on Thursday morning.
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Oil, PSO, Pakistan, WAPDA
oil, Pakistan, PARCO, PSO
When we have clear trade embargoes for no trade with Israel. This comes as an astonishment that how can the state oil company PSO go about a deal with an Israel based company. The excerpt from Dawn has more detail:
The Pakistan State Oil, a government-run oil company, has awarded a contact to an Israeli-based firm, Turpak-Orpak, despite the government’s ban on any kind of trade or agreement with an Israeli entity.
The matter was taken up by the Senate Standing Committee on Interior at its meeting on Monday.
The committee did not only deal with the matter of awarding a contract to any Israeli firm but also expressed doubts over the operation of the company close to sensitive installations in the country.
“It is an Israeli military establishment-funded company which is being headed by a military general,” committee’s Chairman Senator Talha Mehmood told Dawn.
“We have learnt that the company had installed its equipment close to sensitive installations and, therefore, I have ordered an inspection of the equipment to ascertain whether they are being used for monitoring purpose,” the senator said.
Mr Talha said that under SRO 76 (1) issued on Sept 2009, no Israeli company could operate in the country, but the PSO management awarded the contract to the firm in 2008.
PSO officials who attended the meeting said the contract had been awarded by the previous management and they had nothing to do with it.
Read more: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/front-page/19-pso-grants-contract-to-israeli-firm-080-hh-10
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PSO, Pakistan
Israel, oil, Pakistan, PSO, Trade
The state oil company, PSO already in litigation along with Petrosin over the auto-gas deal, it has now being disclosed by the company MD that a power group is involved in supply scams involving selling of cheap oil ahead of monthly price adjustments.
Here is an excerpt that appeared in Dawn News today.
A fresh scam in the oil supply chain surfaced on Thursday when the management of state-run Pakistan State Oil (PSO) officially confirmed that a powerful group in the company was involved in selling cheap oil to influential dealers ahead of monthly price adjustments to enable them to charge higher rates from consumers.
As the managing director of the country’s largest oil supplier, Mr Irfan Qureshi, broke the news before the National Assembly’s Standing Committee on Petroleum and Natural Resources, the committee’s chairman, Shaikh Waqas Akram, demanded an inquiry and its report within a week to identify officials involved in manipulating the supply chain to the benefit of dealers.
Mr Qureshi told the committee that PSO officials were found providing petroleum products to dealers on credit at the end of each month in anticipation of an increase in prices to earn a windfall at the cost of PSO. He said two officials had been held accountable for being involved in the malpractices and an inquiry had been in progress since April.
He said the practice had been going on for years and had now been brought to an end. He said six officials at the Lalpir depot had been suspended for embezzling Rs100 million. He said whenever the PSO took action against corrupt officials, courts reinstated them.
Read more: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/front-page/powerful-group-in-pso-involved-in-supply-scams-370
Fuel, Infrastructure, Oil, PSO, Pakistan
oil, prices, PSO, scam, supply
Pakistan State Oil (PSO) and Petrosin, a Singapore-based company, have entered into a legal battle over scrapping of Rs 10 billion LPG sale contract between the two parties, as the latter has got a stay order from Lahore High Court Rawalpindi Bench, Business Recorder has learnt.
Pakistan State Oil (PSO) Board of Management (BoM) had rescinded its earlier decision of awarding a contract to Petrosin in last week of April for setting up 400 LPG auto-gas stations across the country. The sources said the PSO’s board had earlier approved the deal through a majority vote with Petrosin.
The PSO’s BoM recently gave the go ahead to the management to invite parties for prequalification to participate in the project of LPG supply to the entire net of the autostations. According to sources, Rawalpindi Bench of LHC has issued stay order directing PSO not to proceed with the process of LPG deal as per advertisement given in newspapers seeking parties for pre-qualification till the final verdict of the court. Sources said that the court would resume hearing of the case today (Friday).
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Auto-Gas, LPG, PSO, Pakistan
AG, Auto-Gas, LPG, PSO
Pakistan State Oil (PSO) faces serious debt issues and the finance ministry has said that it cannot help. The National Assembly standing committee on petroleum and natural resources has resolved to take up the issue before Prime Minister Yousuf Raza Gilani. Business Recorder reports that:
Cash-strapped PSO had requested for immediate arrangement of Rs 60 billion to ease its financial woes in a meeting held on Wednesday. Special Secretary, Finance, Asif Bajwa, chaired the meeting which was attended by all stakeholders.
“But Finance Ministry has agreed to release Rs 5 billion to Pakistan Electric Power Company (Pepco), which will make payment onward to PSO,” sources said. “Now the third quarter is going to end, and the Finance Ministry will release money during the next month to bail out oil and power sectors,” sources said, and alleged that poor recoveries by Pepco were also the main reason of the circular debt. During the meeting, it was stated that Pepco had sent bills to the consumers and would make payment to PSO during next month.
Meanwhile, briefing the NA body on petroleum and natural resources, PSO Managing Director (MD) Irfan Qureshi said that PSO dues against its clients had exceeded Rs 105 billion. He said that PSO required Rs 57 billion to mature Letters of Credit (L/Cs) for oil import. “PSO may default its L/Cs by April 20 if it is not provided Rs 57 billion,” he warned.
The Oil and Gas Development Company Limited (OGDC) authorities informed the NA body on petroleum and natural resources that litigation issues were resulting in loss of oil and gas. “The country is losing 6000 barrels per day crude oil, 300 MMCFD natural gas and 500 tons LPG per day due to litigation,” OGDC officials said.
Sui Southern Gas Company Limited (SSGC) representative said that the company was to receive Rs 35 billion from its clients on account of gas supply and refunds from FBR. The outstanding of SSGC against KESC stands at Rs 17 billion and Rs 4 billion from Water and Power Development Authority (Wapda). The gas utility is to receive Rs 10 billion on account of refund from Federal Board of Revenue (FBR).
Energy, Oil, Pakistan
Pakistan State Oil (PSO), PSO
Pakistan State Oil (PSO), the country’s leading oil marketing company, has posted Rs 5.083 billion as profit after tax in the half year period ended December 31, 2009 as compared to after tax loss of Rs 10.049 billion recorded in the corresponding period in 2008.
Highlights
- Overall, the market share for PSO stood at 71.4 percent during the first half of FY10.
- Despite financial challenges and economic slow down, PSO maintained its leadership in the White and Black Oil market segments with market shares of 56.3 percent and 88.5 percent respectively.
- The reporting period witnessed the transference of 12 percent of the government of Pakistan’s shareholding to the employees of PSO.
- During the first half of FY10, the company signed a Fuel Supply Agreement with Northern Power Generation Company Limited (NPGCL), a subsidiary company of the Pakistan Electric Power Company (Private) Limited (PEPCO), for exclusively fulfilling Furnace Oil and HSD requirements of all the power stations of NPGCL.
Oil, Pakistan
financial results, Pakistan State Oil (PSO), PSO
