Oil and gas group BP is a front-runner to win a controlling stake in Pakistan State Oil (PSO) in a deal worth about £300 million , according to reports today.
MerchantBridge, a London-based investment bank, has joined forces with BP in the bidding, Britain's Timesnewspaper said.
MerchantBridge managing partner Basil al-Rahim was quoted as saying: "Pakistan's economy is growing at between 6 and 7 per cent a year. We take the view that that will continue for the foreseeable future and wish to participate in that growth. BP can bring additional operating improvements to the business."
The Timessaid Petronas of Malaysia and Swiss-based oil trader Vitol were among the other companies competing for the PSO stake.
PSO is next in line on the Pakistani government's privatisation agenda. The government is selling all but 3 per cent of its 54 per cent holding in the company.
Bidding is scheduled for May 19th, although a case regarding the disqualification of Attock Group from the process is pending in a court and could delay the sale.