Press Release

JCR-VIS places Ratings of Jamshoro Joint Venture Limited under ‘Rating Watch - Developing’ status

Karachi, December 31, 2013: JCR-VIS Credit Rating Company Limited has placed the entity ratings of Jamshoro Joint Venture Limited (JJVL) of ‘A+/A-1 (Single A Plus/A-One) under ‘Rating Watch - Developing’ status.

The company had been procuring Composite Associated Gas Mixture from Badin concession area under an Implementation Agreement (IA) with Sui Southern Gas Company Limited (SSGC) through a consortium comprising United Energy Group, Oil & Gas Development Company Limited (OGDCL) and Government Holdings Limited under a Gas Sales Agreement (GSA). The IA was co-terminus with the GSA, but was to be automatically extended in case the GSA was extended.

The above mentioned rating action has been taken on account of the judgment of the Supreme Court of Pakistan with regards to the IA. The apex court has set aside the IA between SSGC and JJVL. The court has further ordered to form a committee to decide, among other things, future relationship between JJVL and SSGC. JJVL has filed a review petition in Supreme Court of Pakistan. JCR-VIS will keenly monitor the proceedings in this regard and update ratings accordingly. Meanwhile, JJVL is continuing to process LPG from SSGC (Badein) and as per management, all obligations of the company are being met. The decision of the Review petition of JJVL will determine the way forward for JJVL.

For further information on this rating announcement, please contact Mr. Javed Callea at 021-35311861-70 or Mr. Maimoon Rasheed at 042-36610681-84.

Jamal Abbas Zaidi
Deputy CEO

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2013 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited