Refinery in Hub: Parco, Saudi and Kuwaiti firms carrying out feasibility studies

Parco and Saudi and Kuwaiti firms are carrying out feasibility studies for building coastal oil refinery at Khalifa Point in Hub, Balochistan.
Official sources in Ministry of Petroleum and Natural Resources told Business Recorder on Friday that all the three parties have shown their interest to set up oil refinery in Balochistan to provide energy and trade corridor to the regional countries, particularly China and Central Asian States, as the President has announced.
Parco, a Pakistan-Abu Dhabi joint venture, is also considering to set up another oil refinery in the coastal areas, as it is already operating one at Mehmood Kot, near Muzaffargarh, the official added.
Setting up an oil refinery is not an easy job, the official said, as it requires nearly an investment of $2 billion. A feasibility study costing nearly 2-3 million dollars would also be carried out, he said.
"We are expecting to receive offers from foreign companies, including Saudi and Kuwaiti firms, to build a $2 billion refinery at Khalifa Point in the Hub district of Balochistan province", the official said. The project, after completion, would double the country's oil refining capacity, he said, adding that the annual refining capacity is 12.82 million tons while crude oil import for the year 2004-05 was about 8.3 million tons.
The government has approved incentives, terms, conditions and evaluation criteria for setting up new oil refineries in the country. The refinery at Khalifa point would be completed and commissioned by December 31, 2010, he added.
Ministry of Petroleum and Oil and Gas Regulatory Authority (Ogra) would select the party for setting up the refinery through international competitive bidding, the official said.