ISLAMABAD – Pakistan has signed three Memorandums of Understanding (MoUs) to raise local equity for establishment of the Greenfield Refinery, for which Saudi Arabia will provide 50% financing.
The $12 billion project, with a capacity to refine 350,000-450,000 barrels of crude oil per day, was initially agreed between Pakistan and Saudi Arabia during a visit of Saudi Crown Prince Mohammed bin Salman in 2019.
Pakistan State Oil (PSO), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL) inked the three MOUs, while the EPC signed an agreement with China National Offshore Oil Corporation (CNOOC) and Pakistan’s Monarch International.
Speaking on the occasion, Minister of State for Petroleum Dr Musadik Malik said establishment of Greenfield Refinery will help decrease trade deficit of the country.
He said the 138 Million Cubic Feet natural gas of worth $1.1billion was explored and added during this period, adding that the dividends of agreement signed with Russia for Crude Oil will reach the masses very soon.
Musadik Malik said negotiations are underway with our friendly countries including Saudi Arabia, United Arab Emirates and other member countries of Gulf Cooperation Council for import of cheap oil and gas to the country.
He said the incumbent government also resumed talks on Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline project, which was shelved by the previous government, while a framework agreement was signed with Azerbaijan for LNG procurement on flexible terms.
The minister said under the agreement, Azerbaijan will offer one Cargo of LNG each month and it will be up to Pakistan to either accept the cargo or not. He said there will be no financial penalty if Pakistan does not accept the cargo, state broadcaster reported.
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