Pakistan expects $5bn investment to transform refineries soon: petroleum minister
Petroleum Minister Ali Pervez Malik on Sunday said Pakistan expects that companies will start signing $5 billion contracts to modernise the outdated oil refineries next month. Talking to the media, the minister said the government would now move beyond memorandums of understanding (MoUs) and sign formal investment agreements with companies. “From next month, you will see $5 billion investment…
Pakistan anticipates $5 billion investments to revamp its ageing oil refineries, according to Petroleum Minister Ali Pervez Malik. Speaking to the media, Malik announced that firms will soon sign formal investment agreements, shifting from memorandums of understanding (MoUs). The minister emphasized that the government will move beyond memorandums of understanding and sign formal investment agreements with companies.
He stated that the companies will raise capital from around the world to convert Pakistan's refineries into some of the best in the world. Malik lamented that Pakistan had neglected its refineries over the past 70 years, resulting in outdated hydro-skimming facilities without a comprehensive policy to attract the required investment for deep-conversion refineries.
He assured that a refinery policy has been approved with the cabinet committee on energy headed by Prime Minister Shehbaz Sharif. Additionally, Turkish Petroleum, a Turkish oil and gas company, will begin offshore drilling in Pakistani waters in September/October, attracting around $120-130 million investment. If oil is discovered, this could potentially alleviate Pakistan's reliance on imported energy.
As a result, petrol prices may ease in the next two days, provided the international market remains stable. The Oil and Gas Regulatory Authority (OGRA) determines petroleum prices based on a seven-day average of international oil prices. Malik also highlighted the challenges Pakistan faces during the Iran-US war and the need for power and authority to be transferred to the grassroots level for improvement.
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