KARACHI: The sponsors of Byco Oil Pakistan Limited (BOPL) have recently injected an additional equity of around $ 25 million to ensure timely completion of $ 430 million oil refinery project.
With this additional fund injection into the company, the debt/equity ratio will be approximately 28:72.
According to company announcement here Thursday, this ratio does not only depict an extremely well capitalised balance sheet, but also unparalleled sponsor commitment, as infrastructure projects in the country are generally being financed with over 70 percent debt, and less than 30 percent equity.
The refinery is more than 94 percent complete and some of the units have already been tested.
BOPL is expected to commence pre-commissioning, commissioning and start up process of its refinery in early 2012. This refinery has a crude processing capacity of 120,000 barrels per day, and will be the largest in Pakistan.
In addition, Byco Group is already operates an existing refinery of 35,000 barrels/day and a petroleum marketing network comprising of, till presently, 213 retail outlets.
More importantly, Byco will pioneer the introduction of isomerization technology in Pakistan which will help value add surplus naphtha, presently being exported, into motor gasoline.
Thus, cumulatively, Byco will have a crude oil refining capacity of 155,000 barrels per day providing substantial import substitution in terms of supplying domestic market with refined petroleum products
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