TEXT: Joint Ventures (JVs) have historically seen both success and failures. However, it has become clear to many companies globally that alliances – both equity JVs and contractual alliances - can be ideal for managing risks in uncertain markets, sharing the cost of large-scale capital investments and injection of entrepreneurial spirits.
PARCO’s creation was the outcome of strong fraternal bonds between Pakistan and Abu Dhabi. Its subsequent expansion and development required a combination of strong financial base and commitment of technical and operational excellence, coupled with a reputation for conducting business in a transparent, fair and professional manner. All these are vital ingredients underpinning PARCO’s sustained growth.
By adhering to the above stated principles, PARCO has been able to fully meet its obligations to its shareholders, employees, business partners, the State and society. The Company was incorporated in 1974, as a 60:40 joint venture between Government of Pakistan (GOP) and Emirate of Abu Dhabi, through its Mubadala Investment Company.
Today, PARCO under the patronage of Government of Pakistan (GOP) and Emirate of Abu Dhabi, operates over 2,000 km of cross-country oil pipelines; a state-of-the-art 120,000 barrels per day operating oil refinery; and strategic storage facilities. In addition, it has several marketing initiatives, including the second largest retail fuel/lubricants network of TOTAL PARCO Pakistan (TPPL) – a 50:50 joint venture with TOTAL of France and owns and operates the largest LPG marketing and distribution company in Pakistan, PARCO Pearl Gas Ltd – a 100% owned subsidiary.
Since oil transportation through pipelines is the safest and fastest mode of managing country-wide supplies of petroleum products, the company developed another subsidiary company in the year 2005 by the name of Pak-Arab Pipeline Company Limited, with shareholding by Shell Pakistan Limited, Pakistan State Oil and Total PARCO Marketing Limited. PAPCO owns a 786 km long White Oil Pipeline (WOP), which runs from Port Qasim at Karachi to Mahmood Kot near Multan. PAPCO is a perfect example of a successful public-private partnership, where Oil Marketing Companies developed confidence in the technical and operational abilities of PARCO and joined hands for sustained High Speed Diesel (HSD) supply chain in Pakistan.
The focus and diversity of technical, social and environmental projects of PARCO speak volumes for themselves. The Company is continuously moving forward to serve the nation to achieve sustainable social and economic growth and providing energy with responsibility.
Copyright Business Recorder, 2021
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