ISLAMABAD: Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) and a Russian consortium of investors Wednesday reached an agreement to establish an oil refinery having capacity to purify 200,000 barrels oil per day.
The consortium is consisted of Inter-Rao Engineering and Himmash Apparat partnered with Orpheus Energy. The Russian delegation was represented by Yaroslave Gavrylenko, Wayne Mitchells and Osman Chaudhry.
KPOGCL Chief Planning Officer (Energy and Power Department) Zainullah Shah and Yoroslav of Himmash signed the deal at a ceremony held at the KP House here.
Pakistan Tehreek-i-Insaf (PTI) Chairman Imran Khan , KP Chief Minister Pervez Khattak and Provincial Minister for Energy and Power Muhammad Atif were also present on the occasion.
Talking to media persons after the signing ceremony, Imran Khan welcomed the oil refinery agreement and said foreign investment was pouring in the province due to good governance and transparency.
He underlined the need for encouraging the generation of hydropower, which is inexpensive and environment-friendly.
He said around 78 megawatt hydropower electricity was readily available with the Khyber Pakhunkhwa, but the province was not getting required cooperation from the Federal Government.
He said availability of inexpensive electricity in the country would help promote business activities, increase industrial growth and bridge gap between trade and exports deficit.
The PTI Chief said the province was awaiting approval of several Memorandums of Understandings with regard to power generation, which facing delay on part of the central government.
Chief Minister Pervez Khattak said the oil refinery project would be a game-changer for the province as it would help in giving a boost to national economy.
He said the Khyber Pakhtunkhwa had the potential to generate around 35,000 megawatt electricity, for which sincere efforts were required to tap the full potential.
The KP is considered a leader in production of crude and condensate production as compared with other provinces, he said, adding that the province was producing 55,000 bpd oil which is equal to 54 percent of the country’s total production.
Provincial Energy and Power Minister Muhammad Atif Khan said the Russian consortium had the vast experience in oil and gas sector, and it would help KPOGCL achieve its goal of achieving self-sufficiency in the energy sector.
He said the government was extending full cooperation to foreign investors and providing them conducive environment for investment in diverse fields.