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Saudi Arabia agrees to invest in new oil refinery in Pakistan's Gwadar

Refinery set up in Pakistan instead of their own country is surely not a profitable proposition for Saudi Arabia, but i believe it's the proposition of Pakistan not Saudi Arabia.
How it would have come about is my guess... Imran Khan asked for hard cash, Saudis refused... negotiations- basically begging and foot licking started, than probably Saudis agreed with conditions to put their money in some profitable venture which would actually help Pakistan and not simply end-up filling pockets of it's corrupt politicians, who will re-launder Saudi money to the foe states. Pakistani corrupt elite as usual decided to flaunt the idea of a business which require highest investment and the easy answer was world's biggest refinery, but than probably it was again rejected, eventually Saudis give in to the proposal of world's third largest biggest refinery.
I'm pretty sure, it will all end up ugly. This i'm saying based on statistics, to what happened to investments of Musharraf time.
 
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By Reuters
Published: October 4, 2018

1818317-Gwadar-1538654354-745-640x480.jpg

Minister says PSO will partner with Saudi oil giant Aramco on project. PHOTO: AFP

ISLAMABAD:


Saudi Arabia has agreed in principle to invest in a new oil refinery in Pakistan’s deep-water port of Gwadar, the petroleum minister said on Thursday.
The state-owned Pakistan State Oil (PSO) will partner with Saudi state oil giant Aramco on the project, Petroleum Minister Ghulam Sarwar Khan told reporters.


Saudi delegation to size up investment opportunities in Gwadar, Punjab


“They showed an interest to immediately invest in the refinery,” Khan said, describing a visiting Saudi delegation.


“We sat down and held initial discussions with them and it was principally decided by both sides that it will be a government-to-government agreement.” Details of the refinery’s costs and scope are to be worked out later, he added.

https://tribune.com.pk/story/1818317/2-saudi-arabia-agrees-invest-new-oil-refinery-pakistans-gwadar/
So, finally... :yahoo:

Another Confirmation

PM-led cabinet approves construction of Gawadar oil refinery, Pak-Saudi pacts

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ISLAMABAD: The federal cabinet on Thursday given its consent to business proposals being discussed between Pakistan and Saudi Arabia.

The cabinet headed by Prime Minister Imran Khan discussed a six-point agenda.

"The cabinet gave approval for the agreements discussed between Pakistan and Saudi Arabia during a visit of the Kingdom's delegation last week," Information Minister Fawad Chaudhry briefed media after the meeting.

An approval has been accorded for the construction of an oil refinery in Gwadar, he said.

Also Read: Saudi Arabia agrees to invest in new oil refinery in Pakistan

"Saudi Arabia will make an investment of Rs30 billion in Pakistan pertaining to the discovery of oil and gas,” he said.

Speaking on this occasion, Petroleum Minister Ghulam Sarwar said, "Saudi Arabia is interested in Gwadar and the China-Pakistan Economic Corridor and has expressed the desire to immediately invest in an oil refinery."

"It has been agreed that it will be a government to government (G2G) agreement," Sarwar further added. "Saudi Arabia's minister of energy will visit Islamabad next month," he further said while adding that the volume and other details are yet to be decided.

"At the time of the agreements, provincial governments will also be taken into confidence," the petroleum minister assured.

Speaking about the other points discussed during the meeting, Chaudhry said, "The cabinet approved converting the Prime Minister House into a high-level research university."

The cabinet also accorded approval for appointments of new members in the Ministry of Finance and the fiscal and monetary policy boards, Chaudhry added.

"We have decided to remove the illegal appointments made by former finance minister Ishaq Dar," he added. "The previous government was run by Nawaz Sharif and Ishaq Dar."

Chauhdry further announced that presidents of National Bank, First WomanBank, Zarai Taraqiati Bank and SME Bank have been removed.

Jameel Ahmed and Shams-ul-Hasan have been removed as deputy governors State Bank, the information minister announced. "Ms Vaddiya has also been removed from Competition Commission Of Pakistan," Chaudhry added that two other members of the Competition Commission Of Pakistan had been removed.

https://www.thenews.com.pk/latest/3...ction-of-gawadar-oil-refinery-pak-saudi-pacts



saudia arabia is like altaf hussain, now remember his resigning and not resigning every week..

saudia will invest
bo saudia will not become partner in cpec
yes saudia will build oil city
no saudia will invest in other sectors
saudia will give 10. billions cash
no saudia is out of equation----

all of this since 3 days.............
 
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Niaz Shaib, I always learn one or two things from senior members like you, you can correct me anytime or on any subject.

Sir can you comment about Khalifa oil refinery project, is it still on the table ....?? because its such an old project and there is no news about it, I was under the impression that UAE has moved that purposed plan to Indian on much bigger scale with partnership of Saudi Aramco.


further links: [1][2]

And as far as this oil city project is concern it is also very old project and we were seeking investment for this project since last decade or so but no concrete success till now, if you remember this very project was first offer to Kuwait than to China and now KSA but in past every time for one reason or other it did not proceed further than the stage of negotiations.


Hon HRK,

Thanks for the compliment. You are right that Khalifa point project goes back to 2007. In my humble opinion, Khalifa Point project is better suited for Pakistan because of two reasons.

First being that unlike Gawdar, Khalifa Point is quite near Karachi and thus near the demand centre. Secondly produce from the refinery will meet the shortfall in Pakistan

I read that this project is finally going ahead from this news item.


$5 billion refinery to be set up at Hub

· MUHAMMAD SHAFA


· MAR 10TH, 2018


· KARACHI

Pakistan in collaboration with UAE is going to establish a state-of-the-art refinery with an estimated investment of around $5 billion at Hub, Baluchistan, said Director General Oil (Ministry of Petroleum and Natural Resources), Abdul Jabbar Memon, on Friday.

''Pak Arab Coastal Refinery'' would have an installed capacity to refine 250,000 barrels per day crude Oil. "The country''s biggest refinery is being set up by Parco with assistance of UAE," the DG Oil told media after a meeting of Pakistan''s oil industry representatives at Byco Petroleum Pakistan Limited refinery at Hub, Baluchistan.

The DG said that refineries established in the coastal belt of Baluchistan would enjoy a 20-year tax exemption on condition that they manage to refine over 100,000 barrels per day crude oil. The government has offered this special incentive primarily to encourage investment in the local refinery sector.

Without giving any timeframe for the work starting on the refinery, he said that practical work on the multi-billion dollar project would start soon.

Mansoor Shafique Qureshi, vice president of Operations Byco Petroleum Pakistan Limited on this occasion said that the company has commissioned a catalytic reformer at its larger oil refinery, ORC-2. The reformer has successfully commenced its operations. This will enable the Company to convert 24,000 barrels per day of Heavy Naphtha into Motor-Gasoline, as per rated capacity. At the combined current level of crude processing at both of Byco''s Oil Refining Complexes (ORC I & II), ie 75,000 barrels per day, the cumulative motor gasoline production has increased 5-fold from 300 tons to 1,500tons per day.

He said: "Byco has invested much time, effort and resources to the commissioning of the catalytic reformer, which will give us the additional strategic advantage of producing significantly more high quality motor gasoline.

He said Byco believes in continuous improvement of its capabilities and our customers will appreciate our commitment to bringing them the best quality products. "Byco has many additional upgrades and investments planned and these will be unveiled as they are rolled out. It already is Pakistan''s largest oil refining firm with a design production capacity of 155,000 barrels per day between its two oil refineries," he informed.

He further said, "Byco''s commitment to investing in innovation is also reflected in its Single Point Mooring which is the first of its kind in the country and still Pakistan''s only floating liquid port which is a national asset: Byco''s SPM has improved the efficiency of fuel delivery for the nation. Due to its strategic position of being in the deep sea, the SPM allows much larger vessels to offload crude oil and refined petroleum products directly without any of the delays and associated demurrage charges."

Additionally, the SPM can also be used to export both crude oil and refined petroleum products. This affords great economies of scale to Pakistan''s economy, by avoiding the significant bottle necks at the country''s other conventional ports, he said.

"Byco refines crude oil into various marketable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil. Byco has the largest capacity crude oil storage tanks in the country. The officials said Byco''s marketing network supports retail outlets in more than 80 cities all over Pakistan and is an emerging player in Pakistan''s oil marketing sector. Byco''s diverse and highly skilled workforce consists of approximately 900 dedicated employees across the firm''s divisions," he added.



Copyright Business Recorder, 2018

https://fp.brecorder.com/2018/03/20180310350431/


And the statement from the Daily Times that included:

“The project’s estimated cost is over $ 5 billion, while 1,811 acres land has been allocated for the purpose. Currently, the PARCO is working on a detailed feasibility study of the project, which is expected to be completed by end of 2023, they added.”

https://dailytimes.com.pk/244695/ogra-proposes-10-new-oil-storage-facilities/


However whether this will, in fact, go ahead or not? I couldn’t say for certain.
 
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because Saudis does not export only refine oil but crude oil as well and IF they install a refinery in Pakistan it will in line with their existing business and would not effect their business negatively

plz follow few links:

1- https://www.eia.gov/beta/international/country.php?iso=SAU
2- https://www.eia.gov/beta/internatio...D.M&vo=0&v=H&start=199401&end=201806&showdm=y
3 - https://www.ceicdata.com/en/indicator/saudi-arabia/crude-oil-exports
4 - http://www.worldstopexports.com/worlds-top-oil-exports-country/

what is the point of setting a crude refinery in Pakistan ? especially world's 3rd largest
 
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what is the point of setting a crude refinery in Pakistan ? especially world's 3rd largest
same as setting up oil refinery in any other oil importing country, and for third largest part it seems misreporting by media
 
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rest easy boys, Saudis have no money to spend anywhere and on top of that Trump is asking to pay US for defending them
 
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what is the point of setting a crude refinery in Pakistan ? especially world's 3rd largest

From Pakistani PoV:
Import of refined petroleum products is the one of the biggest import bills for Pakistan.
Locally we have plenty of oil reserves, which we can bring into use.

From Saudi PoV:
Since we import mainly from Saudi, it dosn't make much of busssiness sense for Saudis.

From US PoV:
Any support to our economy is seen direct threat to US policy of failing and defaulting Pakistan.
I expect some uneasiness in Washington over such news.

Is this guy for real?
Of course and he's hurt.
CPEC is indeed suffering but from Pakistan side, not from China side.
 
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From Pakistani PoV:
Import of refined petroleum products is the one of the biggest import bills for Pakistan.
Locally we have plenty of oil reserves, which we can bring into use.

From Saudi PoV:
Since we import mainly from Saudi, it dosn't make much of busssiness sense for Saudis.

From US PoV:
Any support to our economy is seen direct threat to US policy of failing and defaulting Pakistan.
I expect some uneasiness in Washington over such news.

from Saudi POV they lock the Pakistani market. Right now Pakistan could switch to other sellers

from US POV it makes no difference. Pakistan still has to import oil and they depend on Saudis
 
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Saudi delegation reaches Gwadar to inspect land for oil refinery
january 12, 2019


A Saudi delegation headed by Saudi Minister for Energy, Industry and Minerals Khalid Abdul Aziz Al Falih arrived in Gwadar on Saturday to inspect the land allocated for a proposed oil refinery, Radio Pakistan reported.

On his arrival, Federal Minister for Petroleum Ghulam Sarwar Khan welcomed the Saudi minister.

Speaking on the occasion, Ghulam Sarwar Khan said that, “Pakistan and Saudi Arabia have a distinctive relationship,” adding that the state-of-the-art oil refinery is the biggest investment project of Saudi Arabia in Pakistan.

Sarwar added that during the upcoming visit of the Saudi crown prince to Pakistan in February, a Memorandum of Understanding (MOU) regarding the oil refinery will also be signed.

Pakistan and Saudi Arabia are likely to ink today an agreement to install the Saudi Aramco Oil Refinery at the oil city located in Balochistan Gwadar district.

Saudi and Pakistani authorities will also sign a memorandum of understanding (MoU) to set up $10 billion oil refinery at the deep seaport which is also the terminal point of the multi-billion dollar China-Pakistan Economic Corridor (CPEC) project.

The Pak Arab Refinery (Parco), a joint venture between Pakistan and Abu Dhabi, is also working on Khalifa refinery project with a total refining capacity of 250,000 barrels per day. At present, Parco is the largest refinery in Pakistan that has refining capacity of 100,000 barrels per day.

Officials said Saudi Arabia and the UAE had announced the same packages for Pakistan and Riyadh was likely to set up a refinery with a capacity of 250,000 barrels per day. At present, the total refining capacity of Pakistan is around 300,000 barrels per day.

The previous Pakistan Muslim League-Nawaz (PML-N) government had allowed the Frontier Works Organization (FWO) to build an oil pipeline from Gwadar to China at an estimated cost of US$10 billion.

Officials believe that Pakistan is going to become a hub of oil trade after setting up these two refineries, which would not only meet Pakistan’s requirement but would also export petroleum products to China.

Annual demand of petroleum products has been forecasted be 50 million tons in 2030 calculated at the GDP growth of 5% because of rising demand of oil due to CPEC activities.

The current demand of petroleum products has been estimated at 29.6 million tons in 2018. In 2029-30, the deficit of petrol and high speed diesel has been estimated to grow to 14 million tons per annum (MTA) and 16 MTA, respectively against the current deficits of 5 MTA and 4 MTA, respectively.

Officials said Pakistan side would also give a list of some other proposed projects to the Saudi delegation. Islamabad wants Riyadh to invest in mineral sector projects like Reko Diq, oil storages in Gwadar and oil pipeline projects in Pakistan.

Pakistan authorities hope that Saudi Arabia would invest US$15 billion in mineral, oil and gas sector projects. Saudi Arabia has also committed annual credit oil facility of US$3.2 billion for three years to support Pakistan’s balance of payment.
 
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Saudi minister visits Gwadar to inspect construction site of proposed oil refinery

Dawn.comUpdated January 12, 2019
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Saudi delegation headed by Minister for Energy, Industry, and Minerals Khalid Abdul Aziz D Al Falih visited Gwadar. —PID/File

A Saudi delegation headed by Minister for Energy, Industry, and Minerals Khalid Abdul Aziz D Al Falih visited Gwadar on Saturday to inspect the site for the proposed oil refinery, Radio Pakistan reported.

Federal Minister for Petroleum and Natural Resources Ghulam Sarwar Khan received the Saudi delegation at the deep seaport city — an ultimate destination of the China Pakistan Economic Corridor.

Describing the proposed refinery a "state-of-the-art facility", Sarwar Khan said it would be the biggest investment of the Saudi government in Pakistan, for which a memorandum of understanding was expected to be signed later this month, read a statement issued by the ministry.

The petroleum minister said Pakistan and Saudi Arabia were enjoying cordial relations.

ARTICLE CONTINUES AFTER AD
The CEO of Al Buainain group, an associate company of Aramco, was also part of the delegation.

Pakistan and Saudi Arabia are likely to sign memoranda of understanding for more than $10 billion Saudi investment in Pakistan this month. The government will also sign similar MoUs with China, the United Arab Emirates and Malaysia over the next two months.

what is the point of setting a crude refinery in Pakistan ? especially world's 3rd largest
Just to annoy Indians like yourself.
 
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And as far as this oil city project is concern it is also very old project and we were seeking investment for this project since last decade or so but no concrete success till now, if you remember this very project was first offer to Kuwait than to China and now KSA but in past every time for one reason or other it did not proceed further than the stage of negotiations.


Back In 2006 Chinese Company GUPC Was To Invest Upto $12 Billion In An Oil City In Gwadar.This Was To Ultimately Attract $40 Billion In Petrochemical Complexes and Oil Storage Facilities.

But Due To Rampant Terrorism and Non Cooperation On Part Of PPP Govt. This Project Got Shelved.In 2013 Iran Agreed To Set Up A Large Oil Refinery But Then N League Govt Came and Being The Loyal Slaves Of International Establishment That They Were Shelved That Project As Well.

Than Multiple Chinese Offers Came But PML N Was Just Not Interested In Pakistan's Development.Now Khan Has Come and Saudia Has Agreed To Establish This Project

Is this guy for real?


Twitters Is Full Of Jokers Man
 
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@niaz I'm pretty sure your claim that the single PARCO 250,000 bpd refinery will be able to fulfill the country's entire demand for refined petroleum products is incorrect. The country's existing refineries have way inadequate production and are all based on obsolete technology which results in a high output of furnace oil and a low output of high end petroleum products.

First, Pakistan is able to fulfill only about half of its demand for refined petroleum products. See here:
https://tribune.com.pk/story/1891732/1-pti-govt-expeditiously-pursue-ip-gas-pipeline-project/

The active oil refining capacity of only 13 million tons per annum against the consumption of 26 million tons petroleum products result in massive imports of crude and petroleum products with import bill of US$ 9.10 billion during 2017

The crude and petroleum products import bill for the country is massive. The following article quotes Minister for Planning Khusro Bakhtiar as saying:
https://www.dawn.com/news/1444295

“Every year, Pakistan imports crude petroleum oil worth of $16bn. If an oil refinery is established in Gwadar, Pakistan would be able to save its import bill worth over $7bn,” he stressed.
 
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