$5-6bn upgrade of refineries hits snags

ISLAMABAD: The upgrade of local refineries under the amended brownfield refinery policy has hit snags mainly because of the delay in its finalisation by the country’s biggest refinery — Pak-Arab Refinery Company (Parco), causing delay in signing of implementation agreements (IAs) between Oil and Gas Regulatory Authority (Ogra) and local refineries.

Though Attock Refinery Limited (ARL) and National Refinery Limited (NRL) are ready to sign agreements, the government wanted the task done in one-go in the presence of Prime Minister Shehbaz Sharif. Therefore, the government has decided to extend the deadline of signing the implementation agreements for six months, which is to expire on April 22.

The Petroleum Division has asked the Ministry of Foreign Affairs to arrange meetings of Federal Minister for Petroleum Dr Musadik Malik and secretary petroleum with the UAE energy minister and CEO Mubadala during their visit to the UAE to persuade them to allow the Parco BoD to become part of the amended brownfield refinery policy.

Federal Minister for Petroleum Dr Musadik Malik held a meeting here on Friday with the UAE ambassador and drew his attention towards the issue and sought the UAE government cooperation on the issue.