Pakistan State Oil

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Pakistan State Oil
Native name پاکستان اسٹیٹ آئل
Type Public
Traded as KSEPSO
Industry Oil and gas
(exploration and oil and gas field development)
Founded January 1, 1974 (1974-01-01);
30 December 1976 (as PSO)
Headquarters Karachi, Pakistan
Area served Worldwide
Key people Amjad Parvez Janjua
(CEO)
Ministry of Petroleum and Natural Resources
(Board of Governors)
Products Mogas, High Speed Diesel (HSD), fuel oil, jet fuel, kerosene, Liquified Petroleum Gas (LPG), compressed Natural Gas (CNG) and petrochemicals, and other products
Revenue Increase U.S. $5.98 billion(590.39 billion PKR) (2013)
Operating income IncreaseU.S. $247.72 million
Net income IncreaseU.S. $346.40 million(2013)
Total assets Increase U.S. $2128.69 million
Owner(s) Government of Pakistan
Employees ~2,000
Subsidiaries
Website www.psopk.com/

Pakistan State Oil (Urdu: پاکستان اسٹیٹ آئل; reporting name: PSO), is a Pakistani mulch-national government-owned corporation,[1] It has consistently remained the market leader of energy industry in Pakistan.[2] Headquartered in Karachi, Sindh Province of Pakistan, it has several state divisions in the different cities in Pakistan, with administrative management business network infrastructure well expanded, built at par with international standards,[3] represents 82% of country’s national energy sources.[2]

The PSO is horizontally integrated and is the largest state-owned energy megacorporation active in the downstream oil and gas industry especially distribution and marketing.[4] [5] The megacorporation is the largest entity in the country, with well expanded business presence in abroad.[1]

The PSO has a primary listing at the Karachi Stock Exchange (KSE), and is a constituent of the KSE-30 Index.[6] PSO is the third largest entity to be placed in the KSE, ranking behind Shell Pakistan— a subsidiary of Royal Dutch Shell.[6]

History[edit]

The formation of PSO began in 1974. The megacorporation started when the government took over and merged Pakistan National Oil (PNO) and Dawood Petroleum Limited (DPL) as Premiere Oil Company Limited (POCL) on 1 January 1974. On 3 June 1974, the government owned Petroleum Storage Development Corporation (PSDC) was established as the umbrella corporation; it was renamed as State Oil Company (SOC Ltd) on 23 August 1976. A vested integration was carried out with the forceful purchasing of Esso Eastern and the control was taken over by the State Oil Company; the government amalgamated all integrated corporations to one single category, called the "Oil Marketing Companies" (OMCo.)

On 30 December 1976, the Premier Oil Company and State Oil Company was horizontally integrated into one single incorporation, giving way to Pakistan State Oil (PSO). The strategic integration of all private oil enterprises into one single megacorporation was considered the pivotal success of the Nationalization Programme of Pakistan Peoples Party.

Since then, the PSO has been under the directives of government-ownership and proposals have been rebuffed to privatization process have been rebuffed. From 1999 to 2004, the PSO had undergone radical changes, both internal and external and has emerged with a new look and as a market presiding entity with a long term vision. The PSO is the only public sector entity in Pakistan that has been competing effectively with three foreign multinationals, Shell, Caltex and Total.

A typical PSO station in Pakistan

The PSO is currently enjoying over 73% share of Black Oil market and 59% share of White Oil market. It is engaged in import, storage, distribution and marketing of various POL products including mogas, high speed diesel (HSD), fuel oil, jet fuel, kerosene, liquified petroleum gas (LPG), compressed natural gas (CNG) and petrochemicals. PSO also enjoys around 35% market participation in lubricants and is blending/marketing Castrol brands, in addition to a wide array of its own.

It is considered as one of the most successful mergers in the history of Pakistan. The megacorporation has retail coverage of over 3,800 outlets, representing 80% participation in total industry network. The company has been the winner of Karachi Stock Exchange top companies award for many years and is a member of World Economic Forum. The PSO serves a wide range of customers throughout Pakistan including retail, industrial, aviation, marine and government/defence sectors. The PSO has been meeting the country’s fuel needs by merging sound business sense with national obligation.

Privatization initiative[edit]

The Pakistani Government holds approximately 54% stake in Pakistan State Oil, including both direct holdings of the Federal Government and indirect holdings through government owned institutions. The Government is currently in the advanced stages of divesting 51% of its stake in PSO to a strategic investor.

References[edit]

  1. ^ a b Steve Forbes. "Pakistan State Oil". Forbes publishing. Retrieved 4 June 2012. 
  2. ^ a b State release. "PSO: About us". PSO, Release. Retrieved 4 June 2012. 
  3. ^ State release date. "Corporate Network of PSO". Corporate Network of PSO. Retrieved 4 June 2012. 
  4. ^ Pakistan State Oil Release. "Business At A Glance". Business At A Glance. Retrieved 4 June 2012. 
  5. ^ "Vision, Mission and Values". Retrieved 4 June 2012. 
  6. ^ a b Tirmizi, Farooq (March 27, 2012). "Caltex out: Chevron’s exit from Pakistan may benefit other players". Dawn News Group. Retrieved 4 June 2012. "Chevron’s potential departure from Pakistan may set off a wave of consolidation in the oil marketing sector, and may provide an opportunity for players like Byco Petroleum and Attock Petroleum to buy out what is currently the third-largest retail network in the country" 

External links[edit]