*ISLAMABAD: *A Chinese state-owned entity has expressed interest inbuilding an up-country deep conversion oil refinery at a cost of $7-8billion in Pakistan.

State-owned Power China International Group Limited (PCGIL) in partnershipwith two other Chinese firms namely CNPC and SINOPEC and investment fromGulf countries want to establish a mega oil refinery under Public PrivatePartnership (PPP) model, reported *Business Recorder.*

According to sources, public-sector oil and gas companies like PakistanPetroleum Limited (PPL), Oil and Gas Development Company (OGDC), GovernmentHolding Private Limited and Pakistan State Oil (PSO) could be invited toparticipate in the project as equity holders.

The share of equity holdings would be decided by each entity’s board ofdirectors after conducting feasibility of this project.

This project is estimated to cost $7 to $8 billion, which would beascertained after the finalization of the feasibility report.

A non-binding memorandum of understanding (MoU) was signed at the BoaoForum in China, in presence of the Prime Minister Shahid Khaqan Abbasi whowas on a visit to the country from April 8th-11th.

This agreement was reached between PSO and PCGIL, who would work inconjunction to carry out a feasibility study for determining the financialand economic viability of this project.