ISLAMABAD: Pakistan Refinery Limited (PRL) and Saudi Arabia’s ED Investment Group are likely to establish a joint project as talks between both sides are under way, well informed sources told Business Recorder.
This was revealed at a recent meeting presided over Federal Minister for Petroleum, Dr Musadik Masood Malik, Focal Minister on KSA Projects convened to seek update on the follow up of the Prime Minister’s visit to KSA in April, 2024. The meeting was attended by representatives of Petroleum Division, Power Division, Resources, Railways, SIFC, PPIB, PSO, PRL, WAPDA and Pakistan Embassy.
Zahid Mir, representing Pakistan Refinery Limited (PRL) stated that during visit of business delegation they had a meeting with ED Investment Group. Since then, there have been a number of interactions between the two sides. PRL has shared draft MoU and NDA (Non-Disclosure Agreement). Saudi company is interested to visit Pakistan in near future to further discuss the project.
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Minister directed all concerned to share regular progress/ development of projects with KSA keeping in view the instructions of the Prime Minister. He also designated Waqas Barlas, Director to Minister for Petroleum as his focal person in this regard. It was also desired by the chair that in future his Director (Focal Person of Minister) should be included/ invited to all meetings by the Ministries/ Departments on Projects related to KSA.
Pakistan Ambassador while sharing the updates since the visit of the Prime Minister noted that Al-Tuwaijri has requested the following information: (i) composition of Task Force from Pakistan side at Executive & Technical Levels;(ii) Saudi side has requested Focal Persons for all 24 projects pitched to them during the visit of their Foreign Minister and Business delegation; and (iii) composition of Saudi Task Force was shared with Pakistan Mission. The Task Force has been constituted with the approval of their Crown Prince.
It was further stated that Ministry of Energy, KSA has prepared a general Memorandum of Understanding (MoU) for further negotiations with Pakistan which carries the approval of their Council of Ministers (Cabinet) as per their internal procedure. This MoU was never shared with Pakistan side prior to approval. Saudi side has been explained that under new proposed Agreement for energy sector more projects can be discussed whereas MoU signed in 2019 covers only Alternate Energy projects.
MD PSO appraised that they held a tri-party meeting between PSO-Sinopec-Aramco on 23 May 2024. During the meeting following major points were discussed: Sinopec highlighted that capital cost of the project is too high. It was mutually agreed that data used in the analysis is stale and requires a revised study. Sinopec showed interest to sell refined petroleum products to Pakistan.
Minister Petroleum observed that Tri-Party MOU during the visit of Prime Minister to China would not be possible which was endorsed by MD PSO.
Managing Director PPIB, Shah Jahan Mirza while updating proposed solar power project added that they are in negotiations with CEO of ACWA Power. Company is interested in 1800-MW project instead of 600-MW. Furthermore, they also want to secure political risk of the project which is currently a challenge as neither Chinese companies like Sinosure nor development partners are extending this facility to Pakistan.
He further added that they are still waiting for feedback from the Saudis on projects of transmission line and Reactive Compensation project.
Chairman WAPDA apprised that Diamer Bhasha Dam (DBD) was pitched to Saudi side but they have yet to start due diligence of the project. PIF has to approve the investments in Pakistan.
Imran Abbasy while updating BLZ Project stated that during the visit of Saudi Business delegation two companies Astra Mining and Alosais Mining showed an interest but not much information about these companies is available on internet. Astra is interested in buying/ getting barite for which samples have been shared with them.
Director General, Planning Ministry Railways noted that PC II of the project has been approved by Planning Commission. Consultant will be hired by 15th June 2024 whereas feasibility will be ready by 30th November 2024. Ministry of Railways is interested to offer project on revenue sharing basis.
Copyright Business Recorder, 2024
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