Byco to Start Pakistan’s Biggest Refinery By December

[Hyde]

Byco to Start Pakistan’s Biggest Refinery By December
​

By Farhan Sharif and Khurrum Anis

June 10 (Bloomberg) -- Byco Petroleum Pakistan Ltd., the country’s smallest refiner, will start the nation’s biggest oil- processing unit by December to take advantage of rising demand and a proposed deregulation in pricing, the chief executive officer said.

The refinery, which cost $450 million and is being assembled after arriving from the United Kingdom, will have the capacity to process 120,000 barrels a day, Amir Abbassciy said in an interview in Karachi yesterday evening. It will be located at the site of the existing facility on Pakistan’s coast in the western province of Baluchistan.

Demand for petroleum products is rising as South Asia’s second-biggest economy after India is forecast by the government to expand 4.5 percent in the year starting July 1, the fastest pace in three years. Consumption of oil products rose 7 percent to 18.6 million metric tons in the 11 months ended May 31, according to KASB Securities Ltd. in Karachi.

The new oil processor will help reduce the gap between demand and supply, said Mohammad Fawad Khan, research analyst at KASB Securities. Demand, which is rising at an annual pace of 5 percent, exceeds supply by 8 million metric tons a year, he said.

Byco’s existing capacity will be increased to 34,000 barrels a day from 30,000 by the end of June, said Abbassciy, 42, who is also chairman of the company.

Pak-Arab Refinery Co., jointly owned by the governments of Pakistan and Abu Dhabi, is the biggest refinery in Pakistan, producing 100,000 barrels a day, according to its website.

Pricing Policy

Pakistan may deregulate the pricing of petroleum products, allowing refiners to determine rates, according to a proposal by the petroleum ministry. Oil & Gas Regulatory Authority, a government agency, currently determines rates.

“Pricing should lie with the refiners, the government should not be involved,” Abbassciy said. “In the future, those refineries which have their own retail networks will have an edge.”

Byco is spending 4 billion rupees ($47 million) to more than double its network of retail fuel outlets to 240 in the next year, which may help the company report a profit. Its net loss narrowed to 368.2 million rupees in the three months ended March 31 from 1.21 billion rupees a year earlier. Sales rose to 10.4 billion rupees from 4.2 billion rupees.

Shares fell 5.5 percent to 9.25 rupees as of 1:15 p.m. local time on the Karachi Stock Exchange. The stock has fallen 2.6 percent this year, compared with a 1.1 percent gain on the Karachi 100 stock index.

Abraaj Capital Ltd., the Dubai-based private equity firm, owns a 40 percent stake in Byco Petroleum.

--With assistance from Khaleeq Ahmed in Islamabad. Editors: Naween A. Mangi, Ravil Shirodkar

 

[sparklingway]

Th deregulation can be good and bad. Deregulated LPG has suffered because the whole supply is controlled by only one party. There are multiple parties here but they sure can profit massively by tinkering with the prices.

 

[Hyde]

There are three other oil refineries under construction having a total capacity of 465,000+ barrels of oil per day due to be completed by 2012.

1) Khalifa Coastal Refinery having a capacity of 250,000 - 300,000 barrels per day (some sources say 250k other says 300k)

2) Bosicor Oil Pakistan LTD 115,000 barrels per day

3) Trans Asia Refinery (source varies from 100,000 - 400,000 barrels per day)

our current requirement is not even half (if existing + under construction plants capacity included) and most of this oil will be exported to other South Asian and African countries so expect more jobs for local Pakistanis

 

[Markus]

There three other oil refineries under construction having a total capacity of 465,000+ barrels of oil per day due to be completed by 2012.

1) Khalifa Coastal Refinery having a capacity of 250,000 - 300,000 barrels per day (some sources say 250k other says 300k)

2) Bosicor Oil Pakistan LTD 115,000 barrels per day

3) Trans Asia Refinery (source varies from 100,000 - 400,000 barrels per day)

our current requirement is not even half and most of this oil will be exported to other South Asian and African countries so expect more jobs for local Pakistanis

Just out of curiosity.

If Pakistan's oil demand is less than its own supply then why is Pakistan carrying out an oil deal with Iran?

 

[desiman]

There three other oil refineries under construction having a total capacity of 465,000+ barrels of oil per day due to be completed by 2012.

1) Khalifa Coastal Refinery having a capacity of 250,000 - 300,000 barrels per day (some sources say 250k other says 300k)

2) Bosicor Oil Pakistan LTD 115,000 barrels per day

3) Trans Asia Refinery (source varies from 100,000 - 400,000 barrels per day)

our current requirement is not even half and most of this oil will be exported to other South Asian and African countries so expect more jobs for local Pakistanis

actually to burst the bubble oil production does not work like that. Its as simple as we produce this much and we sell that much. You need to have a constant supply of crude oil which Pakistan does not have in sufficient quantity or has not been extracted yet. Secondly there are many international regulations on the amount of production you can export. If Pakistan starts selling oil like that international prices will take a beating. Another point is that these plant almost never run at full capacity and im not even sure the number you have given are right. The look a big over inflated. One more thing is the willingness of countries to take oil from Pakistan, there are many security and long term stability issues.


http://www.indexmundi.com/pakistan/oil_production.html

Are you sure these figures are not per year rather than per day. In 2010 till date the whole of Pakistan only produces around 60000 barrels per day. So its much more that you think when its comes to oil production. Achieving the numbers you have given will take a lot of work and luck. With such numbers Pakistan will almost produce more than half of India's production which is highly unlikely but again is possible.

 

[hellofriends]

Top 10 largest refinery of the World:


1-Paraguana Refining Complex (CRP) ,Amuay and Cardón, Venezuela 940,000Barrels per Day
2-Reliance Industries II (Merger of Reliance Petroleum with Reliance Industries) Jamnagar GJ, India 700,000Barrels per Day
3-SK Energy Ulsan Refinery (SK Energy) South Korea 840,000Barrels per Day
4-Yeosu Refinery (GS Caltex) South Korea 700,000Barrels per Day
5-Reliance Industries II (Merger of Reliance Petroleum with Reliance Industries) Jamnagar, India 700,000Barrels per Day
6-Reliance Industries I1 (merged) Jamnagar GJ, India 661,000Barrels per Day
7-Jurong Island Refinery (ExxonMobil) Singapore 605,000Barrels per Day
8-Baytown Refinery (ExxonMobil) Baytown, TX, USA 572,500Barrels per Day
9-Ras Tanura Refinery (Saudi Aramco) Eastern Province, Saudi Arabia 525,000Barrels per Day
10-S-Oil Ulsan Refinery (S-Oil) South Korea 520,000Barrels per Day

 

[M8R]

actually to burst the bubble oil production does not work like that. Its as simple as we produce this much and we sell that much. You need to have a constant supply of crude oil which Pakistan does not have in sufficient quantity or has not been extracted yet. Secondly there are many international regulations on the amount of production you can export. If Pakistan starts selling oil like that international prices will take a beating. Another point is that these plant almost never run at full capacity and im not even sure the number you have given are right. The look a big over inflated. One more thing is the willingness of countries to take oil from Pakistan, there are many security and long term stability issues.


Pakistan Oil - production - Economy

Are you sure these figures are not per year rather than per day. In 2010 till date the whole of Pakistan only produces around 60000 barrels per day. So its much more that you think when its comes to oil production. Achieving the numbers you have given will take a lot of work and luck. With such numbers Pakistan will almost produce more than half of India's production which is highly unlikely but again is possible.

Wow i thought you had problems with our Military Projects only not Economic Projects.You guys are sure obsessed with Pakistan and thanks for the comment re security wiseass.

 

[Frankenstein]

Just out of curiosity.

If Pakistan's oil demand is less than its own supply then why is Pakistan carrying out an oil deal with Iran?

There was Gas pipeline deal, never heard of oil deal, was there any, source??

 

[Hyde]

actually to burst the bubble oil production does not work like that. Its as simple as we produce this much and we sell that much. You need to have a constant supply of crude oil which Pakistan does not have in sufficient quantity or has not been extracted yet. Secondly there are many international regulations on the amount of production you can export. If Pakistan starts selling oil like that international prices will take a beating. Another point is that these plant almost never run at full capacity and im not even sure the number you have given are right. The look a big over inflated. One more thing is the willingness of countries to take oil from Pakistan, there are many security and long term stability issues.


Pakistan Oil - production - Economy

actually no bubbles are bursted as you do not know anything about these Oil refineries i guess. These refineries will not be extracting oil from Pakistani fields only. They will be importing oil from middle east, refine in Pakistan and then exporting to other South Asian and African countries. I am sure China will grab some oil also

Some of these plants are being set up by foreign companies and they are the care taker of these refineries. One of the plants i mentioned in my above post was supposed to be installed in Italy that was later on decided to shift to Pakistan for various reasons. These refineries are not owned by the GoP.

Are you sure these figures are not per year rather than per day. In 2010 till date the whole of Pakistan only produces around 60000 barrels per day. So its much more that you think when its comes to oil production. Achieving the numbers you have given will take a lot of work and luck. With such numbers Pakistan will almost produce more than half of India's production which is highly unlikely but again is possible.

Pakistan's oil production was around 66,000 barrels per day in 2009 and her consumption stood around 383,000 barrels per day in 2008.

 

[BATMAN]

Just out of curiosity.

If Pakistan's oil demand is less than its own supply then why is Pakistan carrying out an oil deal with Iran?

Please rephrase your question...
I failed to understad it... as every one else!

Thanks.

 

[desiman]

Wow i thought you had problems with our Military Projects only not Economic Projects.You guys are sure obsessed with Pakistan and thanks for the comment re security wiseass.

if you cant answer properly then dont answer, i only asked a question, no need to get so defensive about it.

 

[desiman]

actually no bubbles are bursted as you do not know anything about these Oil refineries i guess. These refineries will not be extracting oil from Pakistani fields only. They will be importing oil from middle east, refine in Pakistan and then exporting to other South Asian and African countries. I am sure China will grab some oil also

Some of these plants are being set up by foreign companies and they are the care taker of these refineries. One of the plants i mentioned in my above post was supposed to be installed in Italy that was later on decided to shift to Pakistan for various reasons. These refineries are not owned by the GoP.


Pakistan's oil production was around 66,000 barrels per day in 2009 and her consumption stood around 383,000 barrels per day in 2008.

hmm sounds fair, but again we will have to wait and watch to see how much of plan materializes.

 

[My-Analogous]

Good luck

 

[Hyde]

hmm sounds fair, but again we will have to wait and watch to see how much of plan materializes.

its already under construction my friend,

Khalifa Coastal plant i think was supposed to be constructed in Gawadar (Balochistan) that after some security reasons moved to hub (balochistan). I have seen some pictures of its construction site on internet.

I believe all these plants are under construction and there are some more oil refineries under construction having capacity of few thousand barrels per day. I just mentioned 3 biggest plants

 

[M8R]

hmm sounds fair, but again we will have to wait and watch to see how much of plan materializes.

Man get a grip.I am sure in your heart you are wishing it never happens but it eventually will and just few minutes ago you were calling zaki a noob in this field..