40,000 barrels/day: Sharjah-based investors to set up $250m oil refinery in KP

[Bomber]

40,000 barrels/day: Sharjah-based investors to set up $250m oil refinery in KP

ISLAMABAD: A Sharjah-based consortium has shown interest in setting up a $250 million oil refinery in Kohat, which would initially produce 20,000 barrel oil per day and would be further enhanced to 40,000 barrel per day in two phases.
Sources said that the consortium representatives have also met Khyber Pukhtunkhwa Chief Minister in this regard and also offered to establish thermal power houses in the province.

Last year, the state-owned oil marketing company Pakistan State Oil (PSO) also signed a Memorandum of Understanding (MoU) with the government of Khyber Pakhtunkhwa for the establishment of an oil refinery in the province.
According to the MoU, PSO would set up a technologically advanced refinery with a capacity of 40,000 barrels per day (BPD) on about 400 acres of land in district Kohat-Khyber Pakhtunkhwa.
The project was envisaged to be set-up through a public-private partnership and would utilise crude oil from nearby indigenous supply sources. As per the PSO statement, the project was expected to be fully commissioned by 2016-17.
The project will be set-up through a public private partnership and will utilise crude oil from nearby indigenous supply sources for production of POL products conforming to Euro IV standards. The multi-million dollar project is expected to be fully commissioned by 2016-17.

 

[WishLivePak]

We should not pump new oil out and instead wait for when oil becomes more scarce or hit a really high price.

 

[mourning sage]

We should not pump new oil out and instead wait for when oil becomes more scarce or hit a really high price.

for that to happen, the infra should atleast be in place and the human resource trained enough. you cant just drill a pipe into the ground and pump up oil.

 

[Viper0011.]

We should not pump new oil out and instead wait for when oil becomes more scarce or hit a really high price.

What you should really do is to use cheaper oil prices to your benefit and try to cut a deal with the Saudis or UAE states to freeze the oil cost for ten years and buy in advance. They need long term customers and if Pakistan had the money, you could pay down a big chunk up front. That way, you pretty much ensure a cheaper oil price for a decade and grow the economy. Some US companies did stuff like this and they grew by a large margin over this course of ten years. Southwest airlines is an example. But you guys don't have the hard cash to take advantage of it though.

 

[fatman17]

40,000 barrels/day: Sharjah-based investors to set up $250m oil refinery in KP

ISLAMABAD: A Sharjah-based consortium has shown interest in setting up a $250 million oil refinery in Kohat, which would initially produce 20,000 barrel oil per day and would be further enhanced to 40,000 barrel per day in two phases.
Sources said that the consortium representatives have also met Khyber Pukhtunkhwa Chief Minister in this regard and also offered to establish thermal power houses in the province.

Last year, the state-owned oil marketing company Pakistan State Oil (PSO) also signed a Memorandum of Understanding (MoU) with the government of Khyber Pakhtunkhwa for the establishment of an oil refinery in the province.
According to the MoU, PSO would set up a technologically advanced refinery with a capacity of 40,000 barrels per day (BPD) on about 400 acres of land in district Kohat-Khyber Pakhtunkhwa.
The project was envisaged to be set-up through a public-private partnership and would utilise crude oil from nearby indigenous supply sources. As per the PSO statement, the project was expected to be fully commissioned by 2016-17.
The project will be set-up through a public private partnership and will utilise crude oil from nearby indigenous supply sources for production of POL products conforming to Euro IV standards. The multi-million dollar project is expected to be fully commissioned by 2016-17.

Good news. PK needs FDI.

 

[Cheetah786]

What you should really do is to use cheaper oil prices to your benefit and try to cut a deal with the Saudis or UAE states to freeze the oil cost for ten years and buy in advance. They need long term customers and if Pakistan had the money, you could pay down a big chunk up front. That way, you pretty much ensure a cheaper oil price for a decade and grow the economy. Some US companies did stuff like this and they grew by a large margin over this course of ten years. Southwest airlines is an example. But you guys don't have the hard cash to take advantage of it though.

All major transport companies through out the world do that ,but those are companies not governments. These refineries they are talking about are meant for local crude production not imported oil.

 

[forcetrip]

Its a refinery. Value added product. A refinery is a place where crude oil is brought and then it is "refined" into petrol among many other things. Even some additives for plastics are gotten from refining crude oil. There is no putting a tube in the ground and getting oil. Oil will still be imported. The imported price of a barrel is for crude oil, not petrol.

 

[truthseeker2010]

40,000 barrel refinery for just $250 mil, i think the refinery would be in a basic hydro skimming configuration, like the other refineries in the country.....

 

[Viper0011.]

All major transport companies through out the world do that ,but those are companies not governments. These refineries they are talking about are meant for local crude production not imported oil.

Ok....so I guess you are an expert on such dealings? NO company operates in a country at this level unless they have a government backed guarantee. The US government or SEC or other agencies monitor and regulate how the business is conducted and if they don't like a deal, it won't happen. Its the same law for Pakistan, India or anywhere else. Contracts between one nation's company to another are always subjected to government backed guarantees is its happening in the private sector. If PSO or other entities are government owned, then the government gives out a direct guarantee.

 

[My-Analogous]

We should not pump new oil out and instead wait for when oil becomes more scarce or hit a really high price.

If we can get oil half the price from the market, then why not?

 

[Cheetah786]

Ok....so I guess you are an expert on such dealings? NO company operates in a country at this level unless they have a government backed guarantee. The US government or SEC or other agencies monitor and regulate how the business is conducted and if they don't like a deal, it won't happen. Its the same law for Pakistan, India or anywhere else. Contracts between one nation's company to another are always subjected to government backed guarantees is its happening in the private sector. If PSO or other entities are government owned, then the government gives out a direct guarantee.

LOL,Clearly I am dealing with an expert. I don't live in the United States but even I know (SEC) holds primary responsibility for enforcing the federal securities laws, proposing securities rules and has absolutely positively nothing to do with future oil contracts.

If we can get oil half the price from the market, then why not?

Americans pay less then oil being traded for Canadian oil almost 20 dollars/ brl less then selling prices and they also get a break on Arabian oil. Pakistan on the other hand pays full pop. When I say Americans I don't mean the government of United states I mean private corporations.

 

[Viper0011.]

LOL,Clearly I am dealing with an expert. I don't live in the United States but even I know (SEC) holds primary responsibility for enforcing the federal securities laws, proposing securities rules and has absolutely positively nothing to do with future oil contracts..

What's a security and a commodity? If you read my post in detail, I mentioned the SEC and other agencies. BTW, the SEC has total authority over any business merger, acquisition or other business dealings. Googling and posting answers doesn't really help. By the way, you may be dealing with an expert in O&G/ Alternative Energy sector.

 

[FaujHistorian]

What you should really do is to use cheaper oil prices to your benefit and try to cut a deal with the Saudis or UAE states to freeze the oil cost for ten years and buy in advance. They need long term customers and if Pakistan had the money, you could pay down a big chunk up front. That way, you pretty much ensure a cheaper oil price for a decade and grow the economy. Some US companies did stuff like this and they grew by a large margin over this course of ten years. Southwest airlines is an example. But you guys don't have the hard cash to take advantage of it though.

you gotta have dollars in cash for such deals bro.

Not just any cash. But DOLLARs in Cash!

Pakistanis love walk around with empty wallet, hence the beggary.

 

[SBD-3]

LOL,Clearly I am dealing with an expert. I don't live in the United States but even I know (SEC) holds primary responsibility for enforcing the federal securities laws, proposing securities rules and has absolutely positively nothing to do with future oil contracts.

SEC is the corporate regulator i.e. the watchdog of All the public and private limited companies in US akin SECP in Pakistan. If an investment bank trades in oil future or a oil marketing or exploration company purchase or sell oil future as business practice. SECP has the authority to do the needful. For example eventhough Fed or FDIC are specialized regulators in US akin FSA in UK and SBP in Pakistan. But they do not overrule the authority of SEC to intervene when necessary.

 

[Judge]

I doubt this will be a financially viable because of low volumes. Refinery nowadays need to be larger.

@niaz , your expertise on this would be appreciated.