BP said near PSO bid deal with Pakistan's Kohinoor

By Faisal Aziz

KARACHI (Reuters) - British oil and gas group BP Plc (BP.L) is set to join Pakistan's Kohinoor Group to bid for a controlling stake in Pakistan State Oil in a deal likely to be worth over $500 million, industry officials said on Wednesday.

Britain's Times newspaper reported this week that BP was the front-runner to win the stake in PSO (PSO.KA), and had joined forces with MerchantBridge, a London-based investment group.

It did not give more details, but said the deal would be worth about $600 million.

Privatization Minister Zahid Hamid said the Kohinoor Group had requested that BP be allowed to join the group in bidding for the stake.

"They have asked that BP should be added to their consortium," Hamid told Reuters.

"We are examining their application, and a decision will be taken soon," he said.

A source familiar with the development said BP was evaluating the whole transaction with "great interest".

"It is clearly very much interested in acquiring the company," he said, and confirmed that MerchantBridge was also part of the proposed grouping.