Hascol to build oil storage facility at Port Qasim

Will make Rs375m investment, work in association with Dubai’s Vitol

KARACHI: Hascol Petroleum has announced that the company, in partnership with Dubai-based Vitol, will widen the scope of its operations with the addition of a 200,000-ton oil storage facility at Port Qasim and equity injection of Rs375 million, according to a bourse filing on Thursday.

For the purpose, the company will establish a separate firm as a joint venture with Vitol, a global energy and commodity trading concern, which has recently bought a 15% stake in Hascol for $28.1 million.



The new oil tank will increase the storage capacity for white and black oil and help the fast-growing oil marketing company to broaden its network of retail outlets in the country.

The company has targeted to increase the number of retail outlets in the four provinces and Azad Jammu and Kashmir to 400 by the end of December this year compared to around 320 at present.

“Total paid-up capital of the new company will be Rs2.5 billion divided into 250 million shares of Rs10 each,” said Zeeshanul Haq, Company Secretary in a notification to the Pakistan Stock Exchange.

“We would like to notify that the board of directors of the company in their meeting held today (Thursday) has approved the establishment of a joint-venture company for developing and operating an oil storage/terminal facility (of approximately 200,000 tons) at Port Qasim along with other sponsors/investors with the company acquiring a 15% equity stake with an estimated investment of Rs375 million subject to approval by shareholders of the company…,” he added.



Hascol already has storage facilities at Machike, Shikarpur and Daulatpur. It has also acquired land at Mehmoodkot and Sahiwal where storage tanks will be completed by the end of December 2016.



In addition to these, the company has leased storage capacity for management at Keamari, according to its official website.

It is engaged in the purchase, storage and sale of petroleum products such as fuel oil, high-speed diesel, gasoline, Jet A-1, liquefied petroleum gas and lubricants.

The company has also made arrangements with Fuchs Lubricants of Germany for producing and marketing its full range of automotive and industrial lubricants and greases.

“In the initial stage, Hascol is getting the lubricants blended under a toll blending agreement and will subsequently put up its own blending plant in Karachi. Hascol is a major supplier of lubricants to the Pakistan Army,” it added.

Published in The Express Tribune, May 27^th, 2016.

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