Booming oil sector to receive investment

ISLAMABAD—Country’s booming oil sector will be receiving another US$ four billion investment in a joint initiative by Pak Arab Refinery, International Petroleum Investment Company and Associated United Arab Emirates.
International Petroleum Investment Company (IPIC) and Associated UAE Investors will take up to 75 per cent stake while Pak Arab Refinery (PARCO) will take the 25 per cent stake to set up the Khalifa Refinery. This Refinery is planned at Khalifa point about 50 Kms West of Karachi on the coast line and 25 Kms South West of the Industrial town of Hub.
Managing Director, Pak-Arab Refinery Limited Muhammad Rasheed Jung told APP in an interview that the refinery will help overcome the diesel shortfall in the country and produce value added products for the local market as well as for export. “Our objectives is to establish a market leader in producing clean high quality middle distillates and other value added products for Pakistan’s domestic market and for export in the international market,” Rasheed said.
“It is after quite some time that the oil industry is receiving that voluminous investment,” he added. About 1000 Acres of land is available for the project being planned close to Hubco power plant (1250 MW) and in the vicinity of bosicor refinery.
The refinery requires SPM, marine for receiving crude and product export and products pipeline connected to white oil pipeline terminal at Port Qasim. GoP will facilitate with infrastructure. Rasheed said the Refinery will have capacity to process about 250,000 to 300,000 tons of crude oil and hence double the existing refining capacity of the country.
“Oil production at this refinery will help overcome the shortfall and meet the occasional shortfall in the like hydel energy and LPG,” he said. Rasheed said products over and above the local needs will be exported. As part of the incentives of the government for foreign investment, the refinery location is being declared export processing zone (duty free area) and all imports during project implementation and operation will be duty free. Rasheed said, desired product quality is based on Euro IV specifications, a parameter in vogue in European and other developed countries.—APP