July 28, 2023
2 mins read

Pakistan teams up with Chinese firms for multibillion-dollar Saudi refinery project

During Crown Prince Mohammed bin Salman’s visit to Islamabad in 2019, an agreement was made for a Saudi project worth USD 12 billion….reports Asian Lite News

Pakistan’s Minister of State for Petroleum Musadik Malik said on Thursday that four Pakistani public entities signed three memorandums of understanding to raise the necessary local equity for a multibillion-dollar Saudi refinery project, as well as an engineering, procurement, and construction contract with a Chinese firm, according to Arab News.

The USD 12 billion Saudi project, with a capacity of 350,000-450,000 barrels of crude oil per day, was first agreed upon during Saudi Crown Prince Mohammed bin Salman’s 2019 visit to Islamabad.

Pakistan State Oil, Oil and Gas Development Co., Pakistan Petroleum Ltd., and Government Holdings Private Ltd. signed three MoUs to raise the required local equity, while the EPC agreement was inked with China National Offshore Oil Corp. and Pakistan’s Monarch International, Arab News reported.

“In our earlier discussions [with Saudi authorities] there were two issues, one was obviously, who are the other equity partners, so Pakistan firmly believed that if Pakistan thinks that this is a viable project, then Pakistan should put its own equity into the project,” Malik told Arab News on the sidelines of the MoU signing ceremony.

“So, we have put together equity partnerships in excess of 40 to 45 per cent as of right now.”

“As I said, we are in the final stages, which means we basically are at the spreadsheet level, trying to take out all the wrinkles that are there or that are possible, so that a world-class refinery of about 300,000 barrels can be set in Pakistan,” he added.

“PSO is taking the lead in local equity with 25 per cent and other firms also committed 5 to 10 per cent which makes our equity share more than what is required.”

Malik said the Pakistan government had brought in the best Chinese company for the purpose of Engineering, Procurement and Construction (EPC) contracts, Arab News reported.

“We have already brought to the table world-class refinery EPC construction partners who are also going to take a position in the equity,” he said.

Malik added that after the announcement of the new refinery policy, the government had also initiated talks with the UAE and Azerbaijan for investment in the sector. (ANI)

ALSO READ: US-trained technocrat may be Pakistan’s caretaker PM

Previous Story

Kalki Koechlin back to theaters with ‘Goldfish’

Next Story

Forced disappearances spark protests in Balochistan

Latest from -Top News

US Backs India’s Hunt for Pahalgam Terrorists

Gabbard’s “hunt down” message comes amidst escalating Indian response to the terrorist attack, saying it had clear “cross-border” links to Pakistan….reports Asian Lite News Tulsi Gabbard, Director of National Intelligence (DNI), on

Border Sealed, Hopes on Hold

A Hindu family from Balochistan’s Sibi was reportedly denied entry into India after the closure of border crossing….reports Asian Lite News Pakistan and India’s decision to shut down the Wagah-Attari border crossing

West visits Cambodia to strengthen ties 

The visit also addresses shared security concerns, including combating serious organised crime and human trafficking, and future defence cooperation initiatives  The UK and Cambodia are collaborating to advance climate initiatives and promote
Go toTop

Don't Miss

China’s exports fall again, impeding Its economic recovery

Mexico and Canada surpassed China this year as the United

Asian allies worry that Blinken blinked in Beijing

Two of the defining images of US Secretary of State