In a major collaboration, leading Pakistani state-owned companies are set to join hands with Saudi Aramco for a $10-billion greenfield refinery project at Gwadar Port, state-run APP reported.
The Memorandum of Understanding (MoU) signing ceremony took place at the head office of Oil and Gas Development Company Limited (OGDCL) on Thursday, a news release said.
Pakistani state-owned entities, OGDCL, Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL) will collaborate through a joint investment strategy.
The project will have significant foreign investment from oil and gas giants through equity participation.
It envisions setting up an integrated refinery petrochemical complex with a crude oil processing capacity of a minimum of 300,000 barrels per day (BPD) along with a petrochemical facility in Pakistan.
The integrated refinery petrochemical complex shall comprise of various components such as marine infrastructure, petrochemical complex, storage for crude oil and refines utilities, pipeline connectivity, etc.
Secretary Petroleum Captain Muhammad Mahmood (retired), in his opening remarks, shared salient aspects of the ‘Greenfield Refinery Policy’ and underscored the commitment of the Petroleum Division towards the development and growth of the sector.
Minister of State for Petroleum Musadik Masood Malik shared details of the project and its benefits to the national economy by way of economic growth, foreign exchange savings, energy security, employment opportunities, and social uplift.
Earlier, the Minister of State for Petroleum said that an investment of $10 billion in the refinery sector will come ‘very soon’ in Pakistan.
“Very soon, Prime Minister Shehbaz Sharif will inaugurate a $10 billion investment, the details of which cannot be shared at the moment,” said Malik, while addressing a ceremony in March.
On Thursday, Pakistan’s E&P giants OGDCL and PSO also signed a MoU for cooperation/collaboration and joint investment strategy for setting up the greenfield refinery project in Balochistan under a consortium arrangement with foreign investors.
The development was shared by OGDCL in a notice to the Pakistan Stock Exchange (PSX).