ISLAMABAD, PAKISTAN – Five Pakistani state-owned companies are set to collaborate with Saudi Arabia’s Aramco to execute a $10 billion refinery project here.
Aramco will inject the initial 30% equity into the project while Pakistan State Oil (PSO), Pak Arab Refinery (Parco), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL) will contribute 70% equity, a Pakistani newspaper Express Tribune reported.
The proposed joint venture will establish a mega refinery in Gwadar with a capacity of 400,000 barrels per day.
The government of Pakistan has already approved a refinery policy for new projects in the country, including tax exemptions to encourage investors to set up refineries.
However, it has yet to approve a refinery policy for existing refineries to facilitate the establishment of upgradation plants.
Existing refineries in Pakistan claim that they can meet the country’s fuel demand if granted incentives under the new refinery policy for their expansion, the newspaper added.