Pakistan Refinery Ltd (PRL) has announced its plan to invest $1 billion in a refinery upgrade project.
According to the notification sent to the PSX, PRL is exploring the option of converting the refinery into a deep conversion refinery along with achieving compliance with the government’s requirement to produce EURO II standard diesel.
The company said that the $1 billion estimate is a broad number and a more reliable estimate of the total investment amount will be confirmed after completion of FEED, followed by the financial close of the project and EPC execution.
For this purpose, a detailed feasibility study was carried out by renowned international consultants who entailed evaluation of different technological variants, technical and financial viability to carry out the refinery upgrade project.
The board has decided to invite expressions of interest from world-renowned engineering contractors for appointment as Front End Engineering Design (FEED) and Engineering, Procurement and Construction (EPC) contractors for the project.
Thereafter, competitive bids will be invited from pre-qualified FEED and EPC contractors.
The company believes that this project would significantly improve its profitability besides providing significant foreign exchange savings for the country.
PRL’s script at the bourse closed at Rs. 22.10, up by 4.99% or Rs. 1.05 with a turnover of 607,000 shares on Friday.
Pakistan Refinery Limited produces and sells petroleum products. The company refines crude oil into various distilled petroleum products, such as furnace oil, high-speed diesel, kerosene oil, jet fuel, motor gasoline, and naphtha.
Its refinery has a capacity of processing 50,000 barrels per day of crude oil. The company sells its products to oil marketing companies and defense forces in Pakistan. It also exports its products