Sponsors of (Byco oil Pakistan Limited) BOPL have recently injected an additional equity of around $25 million to ensure a timely completion of the oil refinery project. With this additional fund injection into the company, debt and equity ratio will be approximately 28:72. This ratio not only depicts an extremely well capitalised balance sheet, but also unparalleled sponsor commitment, as infrastructure projects in the country are generally being financed with over 70 per cent debt, and less than 30 per cent equity. Byco Oil Pakistan Limited (“BOPL”) is expected to commence pre-commissioning, commissioning and start up process of its refinery in early 2012. This refinery has a crude processing capacity of 120,000 barrels per day, and will be the largest refinery in Pakistan. In addition, Byco Group already operates an existing refinery of 35,000 barrels per day and a petroleum marketing network comprising of – as things stand – 213 retail outlets. More importantly, Byco will pioneer introduction of ‘Isomerisation technology’ in Pakistan which will help value add surplus naphtha – presently being exported – into motor gasoline.
