ISLAMABAD (September 12 2006): The Abu Dhabi Group of UAE, one of three short-listed bidders, has pulled out of the contest, leaving behind only two parties--Al-Ghurair Group of UEA, and Saudi Arabia's Al-Jumahia-led consortium--for Pakistan State Oil bidding.

The officials working on the transaction here are of the view that Abu Dhabi Group's withdrawal from the contest was a serious setback to PSO sell-off plan and it might force the government to wind up the on-going bidding process.

Sources said that Abu Dhabi Group's exit and its possible impact on PSO bidding process were discussed at the Privatisation Commission board meeting here on Saturday. One of the officials, who attended the meeting, told Business Recorder on Monday that the Board, after detailed discussion, referred the case to the Cabinet Committee on Privatisation (CCoP) for guidance. The Privatisation Commission informed the Board that the inordinate delay in bidding resulted in the exit of Abu Dhabi Group of UAE and now only two parties are to contest for PSO in the case the Privatisation Commission is asked to go for the transaction on the exiting process.

The board was informed that Privatisation Commission was left with two options-restart the bidding process and invite afresh expression of interest (EoI) from the interested parties, or go by the on-going process. Abu Dhabi Group is the second party to withdraw from PSO bidding. Earlier, Fauji Foundation went out without giving any specific reason.

Copyright Business Recorder, 2006