The Indus Refinery Limited (IRL), a joint venture between Middle East-based investors and local sponsors, has signed a contract with Descon Engineering Limited for the provision of civil works for IRL's 100,000 barrel per day petroleum refinery located on Main National Highway near Port Qasim.
Under the scope of the contract Descon will provide all personnel, equipment and services to complete IRL's earthworks, grading, paving, underground piping, underground electrical trenches, tank dikes, concrete foundations and slabs.
The contract is expected to take 20 months to complete and is scheduled to allow for ongoing mechanical re-erection and electrical and instrumentation work.
Commenting on the signing of the contract between the two entities, Chief Executive Officer, IRL, Peter J Hamill said, "It is a landmark occasion for IRL and a significant development in the oil and gas sector of Pakistan. IRL has also engaged world class engineering firm SNC Lavalin to act as project manager, Ventech Engineers International as process engineer, and advisory firms Jacobs Consultancy and Vitol to ensure a successful project."
During construction the refinery will provide thousands of jobs for Pakistanis and when completed in early 2009 it will provide more than six hundred permanent skilled jobs.
Director Business Development, Descon, Amer Kamran Khuaja while giving his remarks on the occasion said, "With a rich experience of over 30 years in plant construction and all disciplines, we are pleased to be part of this mega project. We will be utilising a fully integrated IT based systems, custom- developed by our wholly-owned company Descon Information System.
The system is fully integrated from proposal to preparation to project progress and cost control."
IRL as a Pakistani Public Limited Company has taken the initiative to relocate, reconstruct and operate a state-of-the-art refinery to become the sixth petroleum refinery in Pakistan, enabling it to be one of the top two largest refineries in the country.
The IRL refinery has a design capacity of 100,000 BPCD or 93,000 BPSD, which is equal to the country's current largest refinery.
The refinery is being constructed to produce maximum yields of profitable products. The products produced will meet the deficit requirements of Pakistan, with any surplus to be exported.
Thus the country will save on foreign exchange in terms of import substitution and it will also earn from the export of surplus products, said, Chairman, IRL, M. Sohail Shamsi.
He further stated, "By the end of 2009 this mega project would produce 30,000 barrels more, which will further strengthen the company's position in the sector."
As a fuel refinery, IRL will produce Propane, Butane, LPG, High Quality Unleaded Gasoline, Kerosene, Aviation Fuels, Low Sulphur High Speed Diesel. The foreign shareholders have 86.7% shareholding in the company while the local sponsors have a 13.3% shareholding. As a result of its low capital investment cost, latest production technology and economies of scale, IRL will have a competitive edge over existing refineries.
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