Saudi Arabia’s state-owned oil giant, Saudi Amarco, will conduct a feasibility study of a proposed multi-billion dollar oil refinery Pakistan is planning to set up in Gwadar, Arab News quoted Advisor to Pakistan Prime Minister on Commerce Abdul Razak Dawood as telling the newspaper.
The newspaper quoted the official saying that the visiting Saudi high-powered delegation will sign a Memorandum of Understanding (MoU) for the feasibility study of the proposed refinery to be established in the port city of Balochistan province.
Dawood told the paper that the members of (Saudi) the delegation visited Gwadar on Tuesday and they were satisfied with the arrangements they witnessed. He added that final decision to this effect will be taken another delegation at most senior level.
It is to be mentioned here that a six-member delegation of Saudi Arabia is in Pakistan since Sunday negotiate with Pakistani officials about the investment opportunities in the country.
The visiting delegation was briefed about China Pakistan Economic Corridor (CPEC) projects linked to Gwadar port and other areas.
The minister said that the delegation showed interest in taking part in the bidding process of two power plants in Punjab, setting up a desalination plant, and Wind and solar power plants in Balochistan.
Pakistan has also offered the Kingdom to make a Free Trade Agreement (FTA) deal. Pakistan’s commerce minister informed that the follow-up delegation comprising senior Saudi officials will shortly come to seal the MoUs.
“The refining capacity of the crude oil in Pakistan has declined over the time that is why Saudis have agreed to put up a refinery. They will import crude and refine here,” Dawood added.
He said the feasibility study would be conducted by the Saudi Aramco which would determine the exact cost of the refinery. “They have the expertise to undertake such studies as we do not have such expertise,” he added.
However, local media reported that Islamabad was expecting the refinery with the capacity of 500,000 barrels per day which is expected to cost around $9 billion besides oil storage facility for up to 3 million tonnes capacity.