PARCO Board Approval Key to Finalize Refinery Upgrade Accord


The Oil & Gas Regulatory Authority (Ogra) is accelerating the finalization of upgrade agreements with refineries under the Brownfield Refinery Policy, following Prime Minister Shehbaz Sharif’s directive for a signing ceremony.

Four refineries are close to completing their agreements, while Pak Arab Refinery Limited (PARCO) awaits board approval before proceeding with the draft submission and final signing. This update was shared during a recent Ogra meeting, which also saw Cnergyico committing to submit its draft agreement shortly.

During the meeting, PARCO representatives indicated that they are taking the matter to their board meeting for approval, expected in the coming days. The submission and final signing of the upgrade agreement are contingent on board approval.

Cnergyico confirmed that the draft upgrade agreement would be submitted within a few days. The meeting, chaired by Ogra’s member (Oil) along with representatives from SIFC and refinery officials, discussed the progress on signing the Upgrade Agreement and Escrow Account with brownfield refineries.

Pakistan Refinery Limited (PRL) has already signed an upgrade agreement with OGRA and will sign a fresh agreement under the prevailing policy. Attock Refinery Limited (ARL) and National Refinery Limited (NRL) have submitted draft upgrade agreements, currently under evaluation.

Once the draft template agreements are finalized, they will be circulated to all refineries for further action, leading to the signing of upgrade agreements.

Prime Minister Shehbaz Sharif’s directive for a signing ceremony underscores the importance of the refinery upgrade agreements, which align with the amended oil refining policy approved by the Cabinet in February 2024.

Story by Tanveer Malik

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