Pakistan, KSA set to ink Aramco oil refinery deal

[Yankee-stani]

Pakistan and Saudi Arabia have finalised the memorandum of understanding (MoU) for the construction of the multi-billion-dollar Saudi Aramco oil refinery in Gwadar deep seaport city, officials said on Thursday.

Pakistan is expecting to sign a number of investment deals, including the construction of mega oil refinery, in the month of February in the presence of a high-level Saudi delegation, confirmed Information Minister Fawad Chaudhry.

“The oil refinery project is the biggest investment project of Saudi Arabia in Pakistan,” he added.

Pakistan and Saudi Arabia have lately expressed renewed interest in enhancing bilateral strategic and trade engagements while KSA also pledged $3 billion in a financial assistant to help Pakistan out of its economic woes.

“A 15-member delegation of Saudi Arabia visited Gwadar from Karachi as part of the finalization process of the MoU for Aramco oil refinery,” said Minister of State and Board of Investment Chairman Haroon Sharif in an interview with a foreign publication.

“We have finalized the MoU for the construction of Aramco oil refinery,” Sharif said, adding that “overall directions have been agreed upon and the agreement will be signed at an ‘appropriate time’.”

Pakistani authorities expect $15 billion investment from Saudi Arabia after Prime Minister Imran Khan chose KSA for his maiden visit and consequently made two official visits.

Earlier, the BoI chief had said, “We are going to sign MoUs with Saudi Aramco and Acwa Power within few weeks. Saudi Aramco is going to set up oil refinery and petrochemical complex in Pakistan while Acwa Power will invest in Pakistan renewable energy sector.”

As part of the investment plan, the Saudi Aramco will construct petrochemical complex housing multi-billion-dollar oil refinery.

“I am expecting around $15 billion investment from Saudi Arabia in the next 3 years. The inflow of investment for oil refinery and petrochemical complex in Pakistan is estimated to be between $6 billion to $10 billion,” the BoI chairman stated.

Pakistan hopes to attract more than $40 billion in foreign direct investment (FDI) during the next five years. “We estimate that roughly around $40 billion investment will be made by these three countries (Saudi Arabia, UAE, and China) in the next three to five years,” Sharif had said during his recent interview.

During the recent visit of the Saudi delegation to Gwadar, Gwadar Port Authority Chairman Dostain Khan Jamaldini on Wednesday gave a briefing about the current developments including the port, progress on China-Pakistan Economic Corridor (CPEC) and Gwadar Master Plan.

• TAGS
• Construction
• deep seaport
• Gwadar
• Memorandum of Understanding
• MoU
• multi-billion-dollar
• Oil refinery
• Pakistan
• saudi arabia
• Saudi Aramco
• Thursday

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https://profit.pakistantoday.com.pk/2019/01/03/pakistan-ksa-set-to-ink-aramco-oil-refinery-deal/

 

[Kompromat]

Finally.

 

[maximuswarrior]

Huge. This is just awesome.

 

[Yankee-stani]

My concern is how we able to between KSA,Turkey and Iran will be difficult but possible

 

[PakSword]

@Path-Finder

There is definitely something under sea some 230 kms in Arabian sea..

My concern is how we able to between KSA,Turkey and Iran will be difficult but possible

Just like how Iran give port to India and Saudi makes investments in India..

 

[Yankee-stani]

@Path-Finder

There is definitely something under sea some 230 kms in Arabian sea..


Just like how Iran give port to India and Saudi makes investments in India..

The Diplomats sent from Islamabad and foreign service folks have lot to digest and cards to play with lol

 

[Maxpane]

sun sun k kan pak gaye hain .

 

[Path-Finder]

@Path-Finder

There is definitely something under sea some 230 kms in Arabian sea..


Just like how Iran give port to India and Saudi makes investments in India..

there was a small island that appeared few years ago after an earthquake off the coast of Pakistan! That little island had a flame burning because it had gas being released off into the air. That was enough indication for oil and gas.

Rex Tillerson clearly wanted an oil contract as it seems.

 

[Yankee-stani]

And they say Pakistan is irrelevent South Asian s...ithole they were wrong lol

 

[ziaulislam]

Finally.

Still an MOU awarding of construction and design will take another 1-2 yr..if anyone asks for commission this can go down the drain as well..just like it happened with PMLN earlier days

We were hearing cheap gaddani coal project and refinery than came showbaz for deep in land coal projects with price of 8 cents vs usual average of 4-5 cents

 

[PakSword]

there was a small island that appeared few years ago after an earthquake off the coast of Pakistan! That little island had a flame burning because it had gas being released off into the air. That was enough indication for oil and gas.

Rex Tillerson clearly wanted a oil contract as it seems.

If what the initial estimates say are correct, the discovery will be huge..

A friend of mine working in UAE government petroleum investment department says that Abu Dhabi also wants to setup a refinery.. In fact his department has finalized the project plan.. They want to get it operational by 2023..

Big car manufacturers (such as AUDI) are also coming due to this.. They know that their car sales will shoot upwards in the coming 5-10 years..

Rex Tillerson is just lucky that only his country can go to those extreme depths.. Otherwise, this project would have gone to China..

But I am happy in that, if US will have stakes in Pakistan, destabilizing attempts from CIA will stop. We will then be able to focus on CPEC related investments..

The only people who don't know about this is us Pakistanis..

 

[ziaulislam]

Pakistan has enough hydro potential to fuel its growth but never realized..
Just 5 dams can provide all the power we need
Each dam can produce an average of 20-22twh with our consumption being around 120twh
Dasu bhasha bunji if built in 2005-2018 today we would have had no power crisis and booming textile industry ...dasu had financing already available through WB which PPPP refused for bhahsa dam where as bhasha and bunji would have cost not more than 10-15% of PSDP or the amount we distributed in BISP

 

[Amalek]

Is creating more refineries profitable in this age? The world is quickly moving away from oil. It is estimated that, by 2025, more new electric cars would be sold worldwide than petrol or diesel cars. By 2030, there would be plenty of dormant refineries worldwide, each dying for business. Margins would be destroyed.

This refinery would be coming online at a time when the demand for oil would have collapsed. If it is 100% Saudi funded venture, then it is good news for Pakistan because it will create jobs for the time being. But if Pakistani government would be investing in it as a partner, then it would be a bad investment in the long term. Renewables are a better bet.

 

[Yankee-stani]

Is creating more refineries profitable in this age? The world is quickly moving away from oil. It is estimated that, by 2025, more new electric cars would be sold worldwide than petrol or diesel cars. By 2030, there would be plenty of dormant refineries worldwide, each dying for business. Margins would be destroyed.

This refinery would be coming online at a time when the demand for oil would have collapsed. If it is 100% Saudi funded venture, then it is good news for Pakistan because it will create jobs for the time being. But if Pakistani government would be investing in it as a partner, then it would be a bad investment in the long term. Renewables are a better bet.

Cars is one thing but other industries still require oil regardless,plastics, certain medicines, and jellies as well so I dont see Oil going anytime soon for Cars yes but since the 90s Natural Gas is some parts of the world have replaced Oil as source of Cars now Electric has taken some of the share as well

 

[Path-Finder]

If what the initial estimates say are correct, the discovery will be huge..

A friend of mine working in UAE government petroleum investment department says that Abu Dhabi also wants to setup a refinery.. In fact his department has finalized the project plan.. They want to get it operational by 2023..

Big car manufacturers (such as AUDI) are also coming due to this.. They know that their car sales will shoot upwards in the coming 5-10 years..

Rex Tillerson is just lucky that only his country can go to those extreme depths.. Otherwise, this project would have gone to China..

But I am happy in that, if US will have stakes in Pakistan, destabilizing attempts from CIA will stop. We will then be able to focus on CPEC related investments..

The only people who don't know about this is us Pakistanis..

This entire region arabian sea and the gulf is extremely rich in oil and gas. Pakistan for some reason never bothered with and I reckon for the best imagine if zardari and nawaj ruling you and oil and gas is available too! The knowledge of this is not new I think there were survey conducted by Britain when it was their empire.

Either way its good news and about time too if you ask me.

As for the US stakes they need Lithium from this Af/Pak region so does China. There are other valuable minerals too. Its better to earn money than have war because no one has the strength to fight any longer as the stake are too damn high.