950820

Pak-Kuwait

refinery to

have capacity

of 6m tons

QUETTA: Pakistan will soon have the biggest refinery with a capacity of refining 6 million tons of crude oil.

This giganic project would be a joint venture by Kuwaiti Petroleum Corporation (KPC) and the Pakistan State Oil (PSO) of which expression of intent has been signed while the Memorandum of Understanding (MOUs) will be initialed soon.

The Managing Director Pakistan State Oil Jehangir Ansari told APP here on Sunday prior to his departure for Karachi that the biggest refinery in the country would cost 105 million dollars and will be completed by the year 2000. It would be built in the coastal area of either Sindh or Balochistan from where the product could be supplied at an accelerated, fast and uninterrupted pace.

Jehangir Ansari said 20 percent equity would be shared by PSO while Kuwait Petroleum Corporation (KPC) would also share 26 percent while remaining share would be floated for public and strategic interests.

It will be based on Kuwaiti oil supply which has been guaranteed by the KPC. The PSO will nominate the initial Chief Executive of the refinery and will exclusively exercise marketing rights.

He disclosed that another refinery with a capacity of 4.5 million tons crude oil will be set up at a cost of over 500 million dollars to meet the national requirement of refined oil which was - 15 million tons per annum while our three refineries were producing 7 million tons of refined oil. This resource gap of 8.7 million tons of finished and refined product was being met by imports. He said that our national needs of refined oil by the year 2000 would be around 26 million tons which would upset our demand and supply position if new refineries were not established in the country.

To a question Jehangir said PSO was lying a pipeline from Pipri to Hubco Power Project to supply 2.5 million tons of furnace oil annually. This is a joint project of PSO and Asian Pipeline Limited (Pak) and would be completed by June 1996. The PSO was also laying a pipeline in collaboration of Indus Pipeline Company Ltd. which will take oil products from Pipri to Jamshoro Thermal Power Plant constructed with the help of Peoples Republic of China. This pipeline will take 2.5 million tons of oil to Jamshoro and it would greatly help reduce traffic congestion from Karachi and would cleanse the environment and lessen pollution problems.

To a question, he said that 20 acres of land has been acquired in Quetta where a modern oil depot would be set up to store 40 thousand tons of oil to meet the local requirement. After construction of this modern depot Balochistan will have 20 days storage to meet its local needs.

Jehangir disclosed that PSO has launched a 3-year plan for modernisation of retail outlook of petrol pumps in the country under which pumps would have facilities of international standards including utility stores, service car care and other modern facilities. This plan would cost about Rs.600 million as gasoline pumps would be imported from the US.

In the social sector, he said that PSO was also contributing its share in spreading of education, health care and sports. He said that cardiovascular unit has been donated to Civil Hospital Jacobabad at a cost of Rs.10 million which would provide service to the people of Sindh and bordering Balochistan. Rs. 10 million have given to the Prime Minister's Flood Relief fund to help supplement government efforts to mitigate the sufferings of the flood and rain ravaged people. Similarly, he said PSO was also sponsoring games and sports and contributing its share to encourage the young sportsmen. He quoted that PSO for the first time sponsored Golf tournament in Quetta and now this would be an annual feature.-APP