Tag: PARCO

Govt to persuade KSA, Sinopec to materialise $10bn green refinery project

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refinery

ISLAMABAD: For the first time, Pakistan has initiated diplomatic endeavours to effectively persuade the Kingdom of Saudi Arabia (KSA) and Sinopec — one of the biggest Chinese companies known for installing refineries — to help materialise the dream of setting up $10 billion state-of-the-art and deep conversion refinery with the capacity to refine crude oil of 300,000 barrels per day (BPD). “Pakistan’s ambassador in Saudi Arabia has been asked to approach the authorities in KSA to facilitate in taking the project forward. The Foreign Office has also been directed to…

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Taxation dispute delays refinery upgrade deals under new policy

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oil-refinery

KARACHI: The refining sector is struggling to finalize agreements with the government for upgrading their facilities to produce cleaner fuels under a new policy, as a dispute over taxation remains unresolved, sources told The News on Monday. As the deadline for the signing of agreements will expire on January 16, 2024, both sides have to resolve the issue of taxation escrow account. Under the policy, the release from the joint escrow account will be made on a pro rata basis, i.e. a maximum of 25 percent from the escrow account…

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Refiners cry foul as govt seeks fresh legal advice on upgrade policy

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Parco-board

ISLAMABAD: Pakistan’s oil refining sector is unhappy with the government’s move to hire a new local law firm to review the implementation of a policy and Joint Escrow Account Agreement aimed at upgrading the country’s ageing refineries, saying it will cause further delays and uncertainty. The Petroleum Division, in a letter dated Dec. 25, 2023, told the local refineries that the law firm would provide a report on the alignment of the legally binding clauses of the proposed Upgrade Agreement with the laws, rules and regulations under the Pakistan Oil…

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Fuel oil exports jump 116pc in first half as domestic demand slumps

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oil-export

KARACHI: Pakistan exported a record amount of fuel oil in the first half of the current financial year, surpassing the total exports of the previous year, as domestic demand plunged due to a shift to cleaner energy sources, data from the oil sector showed on Monday. The country exported around 600,000 tonnes of fuel oil from July to December 2023, surpassing the total exports of 277,000 tonnes for the entire fiscal year that ended June 30, 2023, the data showed. Fuel oil exports surged in November and December, when local…

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Refineries shun Russian crude as fuel oil prices dip

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Parco-board

KARACHI: Local refineries are reluctant to import the Russian crude oil as the global prices of furnace oil, a by-product of the Russian oil, have plunged, industry sources told The News on Tuesday. “We need the Russian crude oil at a discounted price because the price for the earlier cargo is not feasible in the present times when the furnace oil price has gone down in the international market,” one source said. Furnace oil prices have dropped to $60 per barrel from $80 per barrel in early December, making it…

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