PAKISTAN - (updated 19 Oct 2009) Benazir Employees Stock Option Scheme: 12% OGDCL shares to be distributed among workers - 20 Aug 2009

Benazir Employees Stock Option Scheme: 12% OGDCL shares to be distributed among workers

* 10,540 workers to benefit from scheme

By Ijaz Kakakhel

ISLAMABAD:
Under the Benazir Employees Stock Option Scheme (BESOS) all
arrangements have been made to distribute 12 percent or 438 million
shares of Oil and Gas Development Company Limited (OGDCL) among its
workers free of cost on August 26.

A total of 10,540 workers of
the OGDCL would benefit from the scheme, said Federal Minister for
Privatisation Naveed Qamar during a press conference on Wednesday.
Explaining details of the process, the minister said one unit was equal
to 3,000 shares and a worker might get from one to 20 units depending
on the service of a worker. A worker who has served for 20 years would
be able to get 20 maximum units and a two-year old employee would be
able to get two units.

Giving further details Qamar informed
that the benefit to each employee would range from Rs 270, 000 (1 x
3,000 shares x Rs 90 per share) to Rs 5,400,000 (20 x 3,000 shares x Rs
90 per share) in accordance with the length of service based on the
dividend paid last year the employees will additionally benefit from
dividends ranging from Rs 14, 250 (3000 shares x Rs 4.75 per share) to
Rs 285, 000 (60,000 shares x Rs 4.75 per share) each.

The main
purpose of the scheme was to fulfil the vision of late Zulfiqar Ali
Bhutto and late Benazir Bhutto through empowering the workers.

Distribution
of shares among its workers would create motivation and they will work
hard for their personal interests, which would result in more
discovery, and prosperity for the country. Both workers as well as the
government will benefit from such initiatives. The minister said that
the PM had distributed shares among Heavy Mechanical Complex’s workers
and now it was the turn of OGDCL on August 26 under the BESOS. The
process of other state entities share distribution among its employees
was in progress, he maintained. He claimed that two thirds of public
entities’ share would be privatised under BESOS.

The
distribution of shares among its workers was not a new concept and
claimed that a number of countries already did so. It would help in
increasing the performance of workers that would ultimately contribute
to the development of the country. After distribution of 12 percent
shares among the workers, still the government would leave 73 percent
shares in OGDCL.

Answering a question, the minister said the
shares would be distributed free of cost and all permanent employees of
the OGDCL, including contract employees working there for the last five
years, would benefit from this scheme. The minister also clarified the
employees would form a trust and three representatives each of
employees and the government would be nominated in the trust and
employees representation on the board of directors of OGDCL as an
additional director by way of board’s resolution. About more investment
in petroleum sector the minister said that the government would
increase investment in production and exploration of oil and gas in the
country. In this regard, he said new licences would also be issued to
increase exploration and production of oil and gas along with
continuation of the existing license holders.

http://www.dailytimes.com.pk/default.asp?page=2009\08\20\story_20-8-2009_pg5_6