The then Ministry of Fuel, Power (now Petroleum) and Natural Resources, however, observed with deep concern that the foreign oil companies viz Burmah Shell, Esso and Caltex were enjoying monopoly in the field of petroleum industry and even after 12 years of independence, the country was lacking in its own strategic assets.
Keeping in view the crying need of this industry, they started pursuing the private sector to rescue the nation from apprehension of any unfortunate happenings.
In this scenario, with the national spirit and patriotic aspiration, Amin Group of Companies formed the first Pakistani oil marketing company under the name "Pakistan National Oils Limited" (PNO) in 1962 and "National Refinery Limited" (NRL) in 1963.
The following individuals have the distinction of promoting/sponsoring the above company:
Late Abdul Qadir (ex-Minister for Finance), Chairman, late Abdul Jalil, (Amin Group), Managing Director, late Abdul Razzak, (Amin Group), Director, late Abdul Latif (Amin Group), Director, Abdul Khaliq, (Amin Group), Director, late Ahmed Dawood, (Dawood Group), Director, late Mian Mohammad Bashi, (Crescent Group), Director, late Hussain D. Habib, (Habib Group), Director, late A. Majid A. Bawany, (Bawany Group), Director, late M.A. Rangoonwala, (Rangoonwala Group), Director, late A. Ahad, (Orr. Dignam, Dacca), Director, late Abdul Salam, (Industrialist, Dacca), Director, late A.K. Khan, (Industrialist, Dacca), Director.
Due to collective and integrated endeavour of managing agents, directors, management staff and workers, the above company overcame all the heavy odds and finally commenced commercial production/operation in 1966.
Late Field Marshal Mohammad Ayub Khan, President of Pakistan very kindly inaugurated the occasion.
Later on the late Ahmed Dawood resigned from the directorship of PNO and formed the 2nd Pakistani Oil Marketing Company under the name "Dawood Petroleum Limited" (DPL) in 1969.
In severe competitive environment, Burmah Shell a wholly owned foreign company, was also constrained to change its status to a Pakistani company under the name "Pakistan Burmah Shell Ltd" (PBS), and offered 49% shares (IPO) to Pakistani shareholders in 1969. This name was subsequently changed to "Shell Pakistan Limited" (Shell).
It will not be needless to mention here that 1965 and 1971 wars with India had shaken the country since acute shortage of petroleum products was encountered when the reserves of these products were hardly available for 3 days.
The total storage other than Keamari was only 25,000 tons and foreign oil companies refused to construct further reserve storages.
They also recently sold a piece of land allotted to these companies at Port Qasim in 1972 to develop infrastructure for this purpose.
On the promulgation of Abolition of Managing Agencies and Election of Directors Order 1972, Messrs. Abdul Khaliq, and Aziz A. Dawood became Managing Directors of PNOL and DPL respectively.
In view of the strategic importance of the energy sector, the federal government took over the management of PNOL and DPL, under the Marketing of Petroleum Products (Federal Control) Act 1974 on 1.1.1974 and also formed "Petroleum Storage Development Corporation of Pakistan Limited" (PSDC) on 3.6.1974 under the Companies Act 1913 (now Companies Ordinance 1984) wholly owned by GOP, to enhance and develop the infrastructure for storage reserves in the country to cope with any crisis that could disrupt oil surplus.
Messrs Mazhar Ali Alvie, Riaz M. Agha and Amanatullah Khan were appointed by GOP as chief executives of these companies respectively. In 1975, the name of Dawood Petroleum Limited was changed to "Premier Oil Company Limited" (POCL).
The market share of foreign oil marketing companies started shrinking, due to severe competition with the Pakistani oil marketing companies.
As a result ESSO sold its entire undertakings in Pakistan to GOP under the ESSO undertaking vesting Ordinance 1976 on 15th September 1976.
Caltex was also inclined to wind up its operational activities in Pakistan but negotiations could not be materialised.
Through the zealous effort of the Ministry of Petroleum and Natural Resources and Pakistan National Oils Ltd prominently by Messrs. M Masihuddin, former Additional Secretary, Ashiq Ali, Director-General Oil, A.G. Khan, Financial Advisor, and Mazhar Ali Alvie, Managing Director, PNO, a re-organisation plan was prepared in the national interest, called "Petroleum Products Marketing Companies Amalgamation Scheme 1976 and was published in the official gazette vide SRO No 1234(1)/76 dated 29th December 1976 as well as approved by GOP vide SRO 1239 (1)/76 dated 30th December 1976.
In accordance with this plan the entire undertakings of PNOL, POCL and ESSO were merged with PSDC.
Name of PSDC was firstly changed to State Oil Company Limited and subsequently to Pakistan State Oil Company Limited.
Thus PSO came into existence in the present shape on 30th December 1976. Mazhar Ali Alvie (former MD, PNO) was appointed by the GOP as the First MD of PSO.
Subsequent to his resignation on 18th May 1979 Late Saeed Ibrahim, S. Amjad Hussain, Mian Mohammad Farid, Jehangir N.W. Ansari and Iftikhar Alam were appointed as Managing Directors of the company from time to time till 1999.
All these gentlemen were basically oriented from the Pakistani Oil Companies with Pakistani culture and national spirit.
Dedicated and impressive performance displayed during a short span of PSO's existence and able guidance rendered by the Ministry of Petroleum and Natural Resources had endorsed that the strategic initiative undertaken by the management, led the company to attain distinction in many fields nationally and internationally in spite of the fact that OMC margin was stagnant to 0.50% till 1994. GOP however, announced phased upward revision to 2% uptil 30.6.2002 and 3.5% effective
1.7.2002. PSO raised its market share to 77% as against 23% in aggregate by foreign oil marketing companies which were at one time enjoying 100% business in the country.
And also constructed infrastructure for storage depots and installations etc in line with defence orientation of dispersal of storages.
Other prominent achievements of the company are also briefed vide Attachments AB&C.
Usman Aminuddin became Minister for Petroleum and Natural Resource after October 12, 1999.
Under the slogan of giving autonomy to PSO to run the company on professional and commercial terms, he re-constituted the board of management of the PSO. Shaukat R. Mirza, an ex-employee of ESSO group, was appointed Managing Director vice Iftikhar Alam (who was made OSD) on 7th February 2000.
After his tragic demise Tariq Kirmani, an ex-employee of Caltex, has been appointed as his successor, wef 26th July, 2001.
Usman Aminuddin was himself an ex-employee of Shell. Thus the management of PSO (a defence-oriented company) has been vested in the persons who were competitors/rivals of PSO in the past and badly dented/hurt. G.A. Sabri, ex-D.G. Oil now D.G. (PC) and a senior member of BOM, had to relinquish charge of a member of PSO board in November 2000.
Presently he is the only official in the Ministry of P and NR who is fully conversant with the entire history of oil industry in Pakistan.
PSO Privatisation scheme has been prepared in this scenario and is at the final stage for bidding.
Due to the facts and circumstances stated above, it will be appropriate if before privatisation of PSO as a one unit, a high-level meeting be convened for open debate inviting all concerned officials, including those who are the pioneers of firmly planting the strategic energy sector industry in order to arrive at a conclusion conducive to the country's need/object since it is firmly believed that storage and installation networks should be retained by Government Holdings Ltd (GHL), a wholly owned GOP company since its Equity Investment in the oil and gas sector is over $1.5 billion.
OIL STORAGE DEPOTS AND INSTALLATIONS:
-- Constructed 28011 storage depots and 9 installations with a total storage capacity of 877,000 metric tons representing 81% of country's total storage,
-- Built installation at Zulfiqarabad Oil Terminal (ZOT) near Pipri, having a storage capacity of 300,000 metric tons, which is sufficient to meet upto 2/3rd of the energy requirement of the country. ZOT consists of Pipri Marshalling Yard, Buffer Oil Terminal and P.1 Booster Pumping Station. From ZOT Oil is supplied to the entire country through pipeline, railway tank wagons and oil tankers,
-- Constructed additional pipeline linking new Oil Pier No 3 to PSO Terminal at Keamari for receiving deficit products directly from Ocean Tankers,
-- Constructed aviation handling facilities at Sihala Terminal and Chakpirana Depot,
-- Built additional storage at Jaglot Depot.
RETAIL OUTLETS:
-- PSO has over 3800 retail outlets representing 80% participation in total industry net work.
-- PSO has the distinction of operating the worlds only gas station situated above sea level at 14,500 ft. near Sust Pass,
-- PSO has fulfilled its responsibilities to the agriculture sector. It has large 700 strong agency net works, which help farm machinery running throughout the country,
-- PSO's LPG business unit, supported by 4 Plants with combined capacity of 750 MT per day is delivering cheap and environment-friendly fuel as well as kerosene to low income house holds, and rural areas where Natural Gas is not available,
-- PSO's supplies in the industrial sector are as important as retail network. WAPDA, Hubco and KESC and most of other IPPs rely on PSO's storage distribution network for fuel in order to generate electricity for the nation,
-- PSO's Lube Blending Plants cater to the requirements for Automotive and Industrial Lubricants of the Public, Defence and Railway Sector,
-- PSO also market locally processed and imported specialised petroleum based chemicals and light products to meet requirements of the related industries of the country.
-- PSO is also an industry leader in Aviation and Marine Business and serves domestic and International Air Carriers including Pakistan Army, Navy, Air Force and Bunkering facilities at Port Qasim and Keamari. The Company introduced Marine Diesel Engine (D-400) to cater the requirements of Pakistan Fleet of Sea-going Vessels at Fisheries.
-- PSO is offering CNG facilities at 73 outlets, translating into a market participation of 19%.
DISTINCTIONS:
-- PSO emerged in the economic scene as a quasi national company, assisted the government in implementation of petroleum policy and supplied all kinds of petroleum products in all parts of the country, in the required quantity, at all times.
-- PSO became the largest commercial house in the country. Its sales value crossed Rs 200 billion annually ($3.5 billion).
-- PSO, the only Pakistani Company, was included amongst 500 largest companies in the world outside America by fortune magazine.
-- PSO is a winner of Karachi Stock Exchange Top 25 Companies Award for the last 18 years and secured First Position in 1998-99.
-- PSO became a member of the prestigious World Economic Forum Headquarters at Geneva, Switzerland.
-- PSO contributed around Rs 54 billion to national exchequer in terms of taxes, levies, dividends etc during FY 2002-2003.