Canada Global(Web News)Pakistan State Oil (PSO) has decided to sell its 30% stake in Pakistan Refinery Limited (PRL) to a Chinese company.
The decision will see an investment of $1.5 billion in the country, which will double the refinery’s capacity, PSO is a major stakeholder in PRL with a 63.6 percent stake, which it shared with Chinese conglomerate United Energy Group. What is the contract of sale?
The Chinese company will invest $1.5 billion to double the capacity of PRL, in return for which PSO will give 30 to 35 percent stake to the Chinese company. At present, PRL’s refining capacity is 50,000 barrels per day, which will increase to 100,000 barrels per day. Sources say that the board of directors of PRL has also approved this deal.
It should be noted that PSO is currently mired in endless revolving debt, with over Rs 700 billion owed to PSO from various institutions, it entered the LNG business in 2015, and PR In addition to increasing its stake in L, PSO is also part of a joint venture between Pakistani companies, which is setting up a refinery in partnership with Saudi Arabia.
The main objective of the upgrade of the refinery is to meet the needs of domestic consumers, and shift from basic hydroskimming to deep conversion process and produce environmentally friendly Euro 5 high speed diesel and motor spirit (petrol), thereby reducing refinery losses. The furnace will also end production of oil, currently the refinery is producing 250,000 tons of motor spirit (petrol) annually.
After this expansion, the production will reach 1.5 million tonnes, similarly the production of high speed diesel will increase from 6 lakh tonnes per annum to 2 million tonnes. PRL recently signed a memorandum of understanding (MoU) with industry leaders UOP and Exxon for licensing of gasoline and diesel, while the Pak refinery also signed a contract to bring its first commercial cargo from Russia this month. kept
