Oil Giant PRL Investing $1.2 Billion For Its Expansion Project The project cost is currently estimated at $1.2 billion on the basis of a detailed feasibility study.

ISLAMABAD ( JAVED MAHMOOD )

Pakistan’s one of the oil giants, Pakistan Refinery Limited, has announced its ambitious project of investing another $1.20 billion for its expansion. The board of directors (BoD) of the PRL has approved the investment and expansion plan that was shared today (Dec 28) with the Pakistan Stock Exchange (PSX) and shareholders of the mega oil company.

According to Pakistan Refinery Limited statement, the BoD of PRL, in their meeting held on December 27, 2021 decided to undertake Refinery Expansion and Upgrade Project (REUP) with the following objectives:

Compliance with requirement to produce EURO V compliant High-Speed Diesel (HSD) and Motor Spirit (MS/Petrol); Expansion of crude processing capacity to 100,000 barrels per day (bpd); And, to achieve self-sustainability by upgrading from Hydro-skimming Refinery to Deep Conversion Refinery thereby, significantly reducing production of High Sulphur Furnace Oil (HSFO).

Meanwhile, statement added that the project cost is currently estimated at $1.2 billion on the basis of a detailed feasibility study. Actual cost of the project will be determined after the completion of the FEED study, followed by financial close and award of Engineering Procurement & Construction (EPC) contract.

PRL would undertake the Front-End Engineering Design or FEED study of the said project and appoint the financial advisor, with the successful bidder expected to be in place by the quarter ending March 31, 2022.

Back in April, it was reported that PRL is looking to buy a second-hand refinery complex to upgrade its operations and increase output.

Pakistan Refinery Limited intends to purchase a pre-owned refinery complex with one or more conversion units, which should have a 50,000 to 100,000 barrel per day throughput design.