PESHAWAR: As part of the new vision of Pakistan State Oil (PSO) to make the leading public sector company an integrated energy company and with the determination to secure Pakistan’s energy supply chain, PSO has signed a Memorandum of Understanding (MoU) with the Government of Khyber Pakhtunkhwa (GoKP) for the establishment of a state-of-the-art oil refinery in the province.
The MoU to initiate this landmark project was signed by Additional Secretary, Ministry of Petroleum & Natural Resources, Naeem Malik; CEO & MD PSO, Naeem Yahya Mir and Secretary Energy and Power GoKP, Zaffar Iqbal.
Also present on this historic occasion were Tariq Pervaiz Khan, Chief Minister Khyber Pakhtunkhwa.
Muhammad Yunis Marwat, Minister for Energy & Power, KPK; Mossarat Qadeem, Minister for Information, KPK and other officials of the Ministry of P&NR and GoPK. PSO team members present at the signing ceremony included Naved Zubairi, SGM-Projects; Hammad Zafar, GM-Retail Construction & Infrastructure and Khawar Jilani, GM-Government Relations along with others.
As per this MoU, PSO will set up a technologically advanced refinery with a capacity of 40,000 Barrels Per Day (BPD) on about 400 acres of land in district Kohat - Khyber Pakhtunkhwa.
The project will be set-up through a public private partnership and will utilize crude oil from nearby indigenous supply sources for production of POL products conforming to Euro IV standards. The multi-million dollar project is expected to be fully commissioned by 2016-17.
Establishment of this refinery will help improve overall availability of POL products across the country as well as result in sizeable foreign exchange savings for the nation.
It shall also increase PSO’s operational base through diversification in the midstream segment and lower distribution cost in the related supply envelopes.
In addition to these benefits, this refinery will also help create job opportunities for the local populace as well as professionals from various technical backgrounds.
It is also expected that substantial foreign direct investment will also take place as a result of this project.
Both dignitaries were of the opinion that this proposed project will serve as the foundation for future initiatives and suggested to continue efforts to do more for future progress and prosperity of Pakistan.
Also speaking after the event, Naeem Y Mir said, “By establishing this refinery, PSO has taken yet another step on the road to developing a self-reliant energy supply chain for the country.
The Company is already working on a number of other projects which coupled with this refinery will help meet Pakistan’s energy needs in the years to come.” PSO in its role of being both a public sector as well as the largest energy company in Pakistan today is committed to meeting all the fuel needs of the country in a timely and responsible manner.
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