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