Khalifa Coastal Oil Refinery Project: A milestone in self reliance

Khalifa Coastal Oil Refinery Project: A milestone in self reliance

ISLAMABAD, July 24 (APP): In a significant move to achieve self-

reliance in the oil production sector, the government has given a task to

Pakistan Arab Refinery Company (PARCO) to complete the much delayed

multi-billion-dollar Khalifa Coastal Oil Refinery project.

"PARCO has been given the task to complete the project having

capacity to refine 250,000 barrels oil per day - equal to 13 million tons of

petroleum products per year," official sources in the Ministry of Petroleum

and Natural Resources told APP.

The sources informed that the groundbreaking of the project was

likely to be performed this year, and it would be completed within five years.

Presently, they said 70 percent of the current oil demand is met

through import and the government had planned to set up more oil refineries in the coming


The government has allotted 1,000 acres of land for the refinery

project, being executed at a cost of around $5 billion.

The project, approved in October 2007, was suspended several times

due to paucity of funds, they added.

PARCO is a joint venture between Pakistan and Abu Dhabi in which

Pakistan holds 60 per cent shares while Abu Dhabi has a 40 per cent stake

through Abu Dhabi Petroleum Investment Company, a subsidiary of

International Petroleum Investment Company (IPIC).

In the Khalifa Refinery, IPIC will have a majority shareholding of 74

per cent while PARCO will have a 26 per cent interest.