Byco Oil Pakistan and Pakistan State Oil have signed a product sale and purchase agreement which will ensure guaranteed sale of 65% of Byco’s petroleum products from its new refinery to PSO.
The agreement will help substitute present imports, particularly of PMG, HSD and HSFO products, and Byco will sell products to PSO against a confirmed letter of credit.
The agreed payment arrangements will benefit the refinery and ensure timely collection of its dues, which will greatly help in reducing circular debt, says a Byco Oil Pakistan press release issued on Monday.
The agreement was inked by PSO Managing Director Naeem Yahya and Byco Pakistan Country Business Head Oil Refining M Qaiser Jamal. Byco’s new refinery, with crude oil processing capacity of 120,000 barrels per day (bpd), is expected to attain mechanical completion by the end of June.
Published in The Express Tribune, May 22nd, 2012.