Oil&gas Regs Regulatory News (OGDC)

OIL AND GAS DEVELOPMENT COMPANY LIMITED

ISLAMABAD

*******

No.CS04-08/04-09/04-10(KSE/LSE/ISE) July 5, 2013

1. The General Manager 2. The Secretary

Karachi Stock Exchange Ltd Lahore Stock Exchange Ltd

Stock Exchange Building 19-Khayaban-e-Aiwan-e-Iqbal

Stock Exchange Road Lahore

Karachi Fax: 042-36368485

Fax: 021-111-573-329, 32410825

3. The Secretary

Islamabad Stock Exchange Ltd 4. London Stock Exchange Plc.

55-B, ISE Towers, Jinnah Avenue 10 Paternoster Square

Islamabad London EC4M 7LS

Fax: 051-111-473-329 Tel: (44) 020 7334 8907

Subject: INVESTMENT IN PAKISTAN INVESTMENT BONDS (PIBs) FOR PARTIAL

SETTLEMENT OF CIRCULAR DEBT

Dear Sir,

For partial resolution of Circular Debt issue prevailing in energy sector, the Government of Pakistan has approved the arrangement for issuance of Pakistan Investment Bonds (PIBs) having face value of Rs 50,772.70 million, maturing on July 19, 2017 (issued date: July 19, 2012) with coupon rate of 11.50% payable on six monthly basis. These PIBs have been subscribed by Oil and Gas Development Company Limited (OGDCL) in order to settle its overdue receivables amounting to Rs 55,728.93 million from gas distribution companies, oil refineries and Independent Power Producers (IPPs). The valuation date for this transaction was June 28, 2013.

This is being provided to you in compliance with the requirements of Clause No.(xx) of the Code of Corporate Governance.

Thanking you.

Yours truly,

(Ahmed Hayat Lak)

 Company Secretary