BP Declines OGDC, PPL Joint Bid for Pakistan Oil Fields

BP Plc, the energy company selling as much as $30 billion of assets to pay for the Gulf of Mexico oil spill, declined a bid for its Pakistan assets from the country’s biggest explorers, the bidders said.

Khalid Rahman, chief executive officer of Pakistan Petroleum Ltd., said the joint effort with Oil & Gas Development Co. was turned down. The two companies confirmed yesterday they had submitted a bid. Toby Odone, a BP spokesman in London, declined to comment.

“We have been told informally that we are not the successful bidder,” Rahman said in an interview at the Pakistan Privatization and Capital Markets Forum in London. PPL is unlikely to raise its offer, he said, while declining to disclose the amount.

BP has so far disposed of about $21 billion of fields across the globe to shore up its finances following the worst oil spill in U.S. history. Jason Kenney, an analyst at ING Wholesale Banking in Edinburgh, estimates that BP’s Pakistan assets are worth about $690 million.

Aftab Ahmad, executive director of OGDC, said he wasn’t aware of the joint bid’s status after it was submitted. Speaking in an interview in London today, he said that if an international player had also submitted a bid, it might have been higher. He also declined to disclose the size of the OGDC and PPL offer.

BP said in July it plans to sell oil and gas production fields in Pakistan, including its deep-water sites.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net.

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.