Burmah exploration sell-off runs into snag

EFFORTS by Burmah Castrol, the lubricants group, to sell its remaining exploration assets have foundered.

Burmah's share of natural gas developments in Pakistan, worth about pounds 20m,- have been for sale for 18 months.

The oil and gas exploration company Premier Consolidated is among the potential buyers whose ambitions have been frustrated as a result of political opposition.

The disposal has run into problems with the Pakistan government, which keeps a close watch on the exploration and development of oil and gas fields in its territory.

Failure to sell the gas interests - which includes a share of the Qadirpur gas field - delays completion of Burmah's long-running and fundamental business restructuring.

In the wake of the 1973 oil crisis Burmah decided to pull out of exploration and development.

It now concentrates on the so- called 'upstream' segments of the oil and gas industry and earns most of its profits from the Castrol range of engine oils.

A spokesman for Burmah said: 'It would be unfair to say that the Pakistan government is blocking a deal, but there are certain hurdles to be jumped. Matters have not been helped by the fact there has been a change of government in Pakistan recently.'

He said that Burmah wanted to strike a deal that satisfied the interests of the Pakistan government and Burmah's own shareholders.

The spokesman added: 'We are determined to sell it, but the disposal is unlikely to occur in the near future.'

Charles Jamieson, chief executive of Premier, said that a deal to buy Burmah's Pakistan gas interest was not imminent.

But he added: 'We are always interested in acquiring assets which come up for sale.'