Islamabad: Despite the government’s efforts to persuade Saudi Aramco to develop a $ 10 billion state-of-the-art and deep conversion refinery, the company appears to be investing in it The project, which is not interested in doing so, reported to The News, citing officials who spoke on condition of anonymity.
According to the publication, if the Deep Conversion Refinery passes, it will have the capacity to clean 300,000 barrels (BPD) of crude oil per day.
Persuading Aramco to invest in the project has become a concern for Islamabad as the government builds a new green refinery full of huge concessions of 7.5 The policy has been informed; 25 years of duty and 20 years of tax leave as per the wishes of the Saudi government, senior officials familiar with the development told The News.
“Now, senior Saudi Aramco officials, in recent talks with Pakistani officials، Indicated that Aramco has distanced itself from the Saudi government and has achieved adequate de-regulation. That is why its management is not more inclined to invest in refinery business around the world. He says the refinery’s business is not as profitable as it was in the past. ”
The official said Pakistan had been instructed by Aramco that it could reduce its equity at the refinery to $ 900 million of the project’s total equity. The investment of $900 million in this project is equivalent to 30% of the total $ 3 billion equity.
“Earlier, total equity was worked on at $ 3 billion and at the very beginning, KSA was willing to invest $ 1.5 billion. The remaining equity of $ 1.5 billion was to be sorted from Pakistan. In earlier understanding, Saudi Aramco had to lead the project and use its influence in managing the $ 7 billion debt for the project. Now Pakistan has been told that Aramko will not lead the project, and the Pakistani government will have to arrange loans on its own
The official claimed: “ The current scenario could change after the general election in Pakistan if a pro-Muslim League government is formed
He added: “Aramco has also developed more interest in setting up a petrochemical complex, not in the refinery، And it has put the authorities in a fix
The government had hoped to complete and launch the project under the Engineering, Procurement, and Construction Finance (EPC-F) model. In the case of Pakistan, it was planned that the project would be completed under a 30:70 equity debt ratio، That means $ 3 billion as equity and $ 7 billion as loans.
Pakistan signed a memorandum of understanding with China Road and Bridge Corporation (CRBC) during the Pakistan Democratic Movement government on July 27. According to the MOU, CRBC will participate in the refinery as a contractor and will also arrange appropriate loans from Chinese banks for the mega project.
On the same date, four MOUs were also signed under which Pakistan State Oil would have a country equity of $ 1.5 billion while oil and oil would have a 25% share & Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL) will each have a 5% share.
Riyadh later asked Islamabad to approach China’s Sinopec and include it in the project. He requested that the contract of Engineering, Procurement and Construction (EPC) be awarded to the Chinese company.
In response, the PSO nominated by the Pakistani government is in contact with the Bank of China and China Sinopec.
Sinopec is also providing services to Saudi Arabia including rigs, good service, geophysical exploration, pipelines, roads and bridges and other EPC projects. Sinopec is serving in Aramco, SWCC, RC, and many Saudi local cities, and has gained a good reputation among customers as well as Saudis.
