PSO TO ESTABLISH OIL REFINERY IN KP DESPITE NO CRUDE OIL IN PROVINCE

Pakistan State Oil (PSO) plans to establish an oil refinery in Khyber Pakhtunkhwa (KP) even though no crude oil is available in the area for any new project. The region produces 8,000 barrels per day and cannot make commercially viable, a new refinery with 36,000 barrels per day capacity.
PSO has planned to establish an oil refinery in KP (Karak) to cut back oil imports at an estimated cost range of Rs 750 million.
The refinery has been planned in an area where total crude oil production was more than four times lower than the capacity planned for the project. The total oil capacity of the province is 7,843 barrels per day while the PSO planned refinery has a total capacity of 36,000 barrel per day.
Besides this, the law and order situation in the area is not ideal and security is a big concern for foreign investment in the area.
Sources said crude oil available in the area is committed for Attock oil refinery and per law no extra crude oil was available for such a project. Attock oil refinery in Rawalpindi already has a long-term contract for about 7,000 barrels per day. In this regard, when contacted, a PSO official said, “We are in a process to award contract for pre-feasibility of the project”. He said the projected crude oil availability both from MOL and OGDCL will be sufficient to run the refinery. He further said the government was aware about the security concerns and appropriate steps would be taken to provide security cover to the project.