Pakistan State Oil, country’s largest oil marketing company, which has been struggling with its cash problems and even went to length to write a letter to ministry of petroleum that they might face bankruptcy, has now planned to acquire a stake in UAE-based Fujairah Refinery.
Senate Standing Committee on Petroleum and Natural Resources was briefed by PSO management on its future plan at the Parliament House on Tuesday.
“The joint venture acquisition of the Middle East refinery project is in its initial stages,” PSO Managing Director Naeem Yahya Mir told the Senate Standing Committee on Petroleum and Natural Resources on Tuesday.
Oil marketing companies across the globe have entered the refining business to increase profits, a model PSO wants to emulate, said Mir.
“We will have an alternate route of oil supply other than the port in Karachi,” he said. “With the inception of K-P refinery, PSO will also have the option to export oil to Afghanistan,” he said.
In addition to this, PSO also plans to build a storage unit and lay an oil pipeline for $350 million in a joint venture with Kuwait Petroleum Corporation at Hub, Balochistan. The move will enhance the country’s oil storage by 12 to 14 days.
According to a local newspaper, PSO’s two-year old plan to enter the refining business has finally made some headway. The company’s first attempt was to enter the refining business by increasing its share in Pakistan Refinery, however, after analysing the deal for a year the management decided not to go forward with it.
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