Monday, December 11, 2023

Pakistan is offering China a $ 9 billion partnership at the PARCO offshore refinery

The government has decided to apply for investment from China to become a shareholder in the state-of-the-art PARCO refinery and petrochemical complex in Hub, Belochistan.

Islamabad also urged Beijing to invest in projects including upgrading existing refineries, building underground gas storage facilities, exploration and production activities, and national seismic surveys in borders and harsh areas such as parts of Balochistan, as well as in the border areas of Pakistan and Afghanistan. ..

And now, at the upcoming 10th JCC Pak-China meeting, the PARCO offshore refinery project, among other things, is the main project in parts of Pakistan that will be on the agenda. More importantly, China will also propose projects such as storage of liquefied natural gas, exploration and production projects at the 10th JCC meeting. “Pakistan wants investment in refineries, exploration and production activities as well as liquefied natural gas storage projects from China under the umbrella of the CPEC and seismic surveys in difficult borders and regions.”

Previously, Special Assistant to Prime Minister Nadeem Babar had written to the Ambassador of the Kingdom of Saudi Arabia in Pakistan, Nawaf Saeed Al-Maliki, in September 2020 inviting Saudi Arabia to partner with PARCO in the installation of 2,500 coastlines to be refined. PARCO 000 BPD. It should be noted that the Saudi envoy replied to the letter at a meeting with SAPM for oil a few days ago, stating that his country, Saudi Arabia, would agree to the proposal.

As a positive development, the Balochistan government provided the NOC on 27 September 2020 for the development of 1,811 hectares of land. For this purpose, PARCO and PERAC signed a 30 year contract for the project. Further talks are underway to acquire an additional 1,000 hectares near Hub, Balochistan. When asked, the official said the feasibility report of the PARCO refinery and petrochemical complex would be finalized soon. Prime Minister Imran Khan is expected to start work on an oil terminal at the site of the PARCO refinery planned at the Hub from April to May 2021 for $ 700 million to $ 800 million. The official said the petroleum department was working to make the POL tariff system attractive enough to ensure maximum investment in the refining sector as crude oil rates are currently higher and the final product does not have a competitive tariff structure.

More importantly, PARCO Coastal Refinery Limited (PCRL) is registered as a 100 unit subsidiary of PARCO. And the Pakistani government has announced various incentives for greenfield refinery development, including tax exemptions for a period of 20 years from the date of commercial production.

The refinery configuration study was completed by Honeywell (UOP, USA) and the feasibility study was updated by Jacobs Consultancy.

More importantly, the implementation strategy and governance structure have been approved and the Pakistani government has approved incentives for the new refinement project and the project site study including soil survey has been completed. Hydrological surveys, offshore geotechnical surveys and offshore data collection have also been completed.

The official stated that Technip FMC has been appointed as the project management consultant and the project organization has been developed and relevant human resources have been engaged. Allen & Overy has been appointed as international legal advisor and the revised market study has been updated and project cost updates completed. International financial advisors are also on the list. The selected FEED (Front End Engineering Design) contractor is also on the list. Tender (ITB) is preparing to appoint a contractor to be reduced.

Contractors selected for environmental impact assessment (AMDAL) are also included in the list. Tenders can be published by the contractor selected on the list.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inline Feedbacks
View all comments

Read more

Latest news
Would love your thoughts, please comment.x