July 27, 2023 (MLN): Oil and Gas Development Company Limited (PSX: OGDC) has informed that the company signed a Memorandum of Understanding (MOU) with Pakistan State Oil (PSX: PSO) on Thursday, agreeing on cooperation, collaboration and a joint investment strategy for setting up a $10 billion Greenfield refinery project in Baluchistan under a consortium arrangement with foreign investors, the company’s filing on PSX revealed today.
“The project will benefit from the incentives offered by the Government of Pakistan under the Pakistan Oil Refining Policy for New/Greenfield Refineries, 2023,” the notice reads.
Moreover, the aforementioned step will provide an opportunity to OGDC for vertical integration in the oil and gas sector.
OGDC submitted this information in compliance with Section 96 of the Securities Act, 2015 and Clause 5.6.1(a) of PSX Regulations, for dissemination amongst your members please.
Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL) are also involved in the joint investment.
The consortium of these 4 leading Pakistan state owned companies will implement a joint investment strategy, attracting foreign investment from leading oil & gas companies worldwide through equity participation.
The project's objective is to establish a Greenfield Refinery and petrochemical complex in Baluchistan, with a minimum processing capacity of 300,000 barrels per day (BPD).
Minister of State for Petroleum Division – Dr. Musadik Malik, shared the project’s benefits including economic growth, exchange rate stability, energy security, job creation, and social progress.
“PSO,OGDCL, PPL and GHPL will contribute 70% equity, while Aramco will inject the initial 30% to 50% equity into the project,” he further added.
Secretary Petroleum, Captain (retired) Muhammad Mahmood, highlighted key components of the Greenfield Refinery Policy and expressed the ministry’s unwavering commitment to the development and expansion of the energy sector.
Copyright Mettis Link News
Posted on: 2023-07-27T15:14:32+05:00
