You are currently viewing Kuwait Petroleum Corporation allowed to set up oil refinery in Balochistan
Oil Gas

Kuwait Petroleum Corporation allowed to set up oil refinery in Balochistan




ISLAMABAD: Kuwait Petroleum Corporation has been given clean chit to set up an oil refinery in the coastal area of Balochistan.

The decision was made by Economic Coordination Committee (ECC) in a meeting held on September 7 in response to Kuwait Petroleum’s interest in pouring capital into setting up a refinery in Balochistan.

ECC termed it a welcome investment initiative for the largely under-developed province, which will reduce the need for import of refined petroleum products in the country.

According to an ECC official, the committee also decided to seek an extension in the timeframe for oil import credit facility from three to four months in an effort to ease pressure on the country’s foreign currency reserves.

“ECC directed Pakistan State Oil (PSO), the state oil marketing giant, to try and persuade Kuwait Petroleum to extend the existing credit facility from 90 to 120 days or even more,” he said, adding: “In another decision, the ECC permitted import of furnace oil and jet fuel from Kuwait without resorting to competitive bidding. At present, PSO imports diesel from the Gulf Arab state on 90-day deferred payment.”

Earlier, Kuwait Petroleum had expressed interest in exporting furnace oil and jet fuel as part of the existing arrangement and was looking to install an oil refinery in the coastal area of Balochistan with storage facilities.

 “Pakistan and Kuwait have an old bilateral relationship in terms of oil trade and Kuwait Petroleum is a time-tested supplier, well-reputed for the most economical supplies, product quality and supply security,” an official told the ECC meeting.




 

M M Alam

M. M. Alam is a Pakistan-based working journalist since 1981. Karachi University faculty gold medalist Alam began his career four decades ago by writing for Dawn, Pakistan’s highest circulating English daily. He has worked for region’s leading publications, global aviation periodicals including Rotors (of USA) and vetted New York Times as permanent employee of daily Express Tribune. Alam regularly covers international aviation and defense-related events including Salon Du Bourget (France), Farnborough (United Kingdom), Dubai (UAE). Alam has reported thousands of events and interviewed hundreds of people in Pakistan, UAE, EU, UK and USA. Being Francophone Alam also coordinates with a number of French publications.