Business

Saudi Arabia agrees to invest in new oil refinery in Pakistan's Gwadar

Minister says PSO will partner with Saudi oil giant Aramco on project

Reuters October 04, 2018

Minister says PSO will partner with Saudi oil giant Aramco on project. PHOTO: AFP

ISLAMABAD: Saudi Arabia has agreed in principle to invest in a new oil refinery in Pakistan's deep-water port of Gwadar, the petroleum minister said on Thursday.

The state-owned Pakistan State Oil (PSO) will partner with Saudi state oil giant Aramco on the project, Petroleum Minister Ghulam Sarwar Khan told reporters.

Saudi delegation to size up investment opportunities in Gwadar, Punjab

"They showed an interest to immediately invest in the refinery," Khan said, describing a visiting Saudi delegation.

"We sat down and held initial discussions with them and it was principally decided by both sides that it will be a government-to-government agreement." Details of the refinery's costs and scope are to be worked out later, he added.

COMMENTS (6)

RAJPUT | 6 years ago | Reply Why don't Saudi Arabia invest in Dam. Pakistan doesn't produce or use as much oil which needs $8 Billion refinery. But there is sure a looming crisis of water storage. A simple problem to solve if there is money. Only $5 billion is required for building water storage capacity for Diamer Bhasha Dam. Additional (at minimum) $7 billions are needed to build power generation facility which can be used to repay the loan taken for dam.

meanginful | 6 years ago | Reply Full disclosure is needed ... not only for the price of the refinery but for the related contracts which likely have "take or pay" adedumns.

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cuban | 6 years ago | Reply @Sami: @cuban What are you trying to say ? We need refineries so that we don’t have to spend $8b per year to import refined oil We have adequate refinery capacity now and adding additional refineries at Gwadar seems more a political move to bolster Gwadar than a legitimate need. We don't have an inexhaustible amt of funds so we should be very selective on what we spend our money on. You should also note that refineries run on oil (most of it imported) and your observation that this refinery will reduce cost of buying oil is inaccurate. Have a nice day.

Amir | 6 years ago | Reply Right move in a right direction. Under Imran Khan leadership, Pakistan is in safe hands whatever decision he makes.

Sami | 6 years ago | Reply @cuban: What are you trying to say ? We need refineries so that we don't have to spend $8b per year to import refined oil

cuban | 6 years ago | Reply Given the current state of the economy .. do we really need an expensive refinery?

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