Pakistan State Oil Company Limited (PSO), the largest oil marketing company in the country, said on Monday that “no material development has taken place” concerning the Greenfield Refinery Project.

The listed company shared the development in a clarification to the Pakistan Stock Exchange (PSX) on Monday.

“We would like to inform you that PSO under the supervision and guidance of the Government of Pakistan is actively engaged in discussions with various parties regarding the establishment of a Greenfield Refinery Project.

“However, at this point in time no material development has taken place which requires PSO to inform PSX,” read the notice.

The clarification comes after Business Recorder, citing well-informed sources, reported that PSO approached Chinese energy firm M/s Sinopec to partner with Saudi Arabia’s Aramco in a state-of-the-art refinery and petrochemical complex in Pakistan.

In a letter to President Sinopec Corp, Yu Baocai, Managing Director/Chief Executive Officer, PSO, Syed Muhammad Taha, conveyed PSO’s interest in inviting Sinopec to participate in a major greenfield refinery and petrochemical project in Pakistan.

Earlier, well-informed sources in the Petroleum Division had also told Business Recorder that the government is likely to include a $10 billion Saudi Aramco refinery project in the framework of China Pakistan Economic Corridor (CPEC).

During the meeting between Pakistan Deputy Ambassador in Beijing and President of Sinopec Engineering Group (SEG), the SEG was informed about Aramco’s proposal to include Sinopec as a technical and equity partner in the Greenfield refinery and petrochemicals project.

Meanwhile, PSO added that it is worthwhile to mention that the company through its letter dated July 31, 2023 had informed the bourse regarding the signing of MoUs with different entities on cooperation and collaboration to form a joint investment strategy for setting up the Greenfield Oil Refinery Project.

Last year in July, four Pakistani state-owned oil and gas companies signed a MoU to execute a $10 billion green refinery project at the strategic Gwadar Port in Pakistan.

Under the MoU, the Oil and Gas Development Company Limited (OGDCL), Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL) will collaborate through a joint investment strategy.