Refineries to sign upgrade agreements within 10 days

Pakistan is set to sign long-awaited refinery upgradation agreements within the next seven to 10 days, as the government moves ahead with reforms to modernise the country’s oil refining sector.

 

Petroleum Minister Ali Pervaiz Malik said the government has already shared the draft agreements with refineries, which are expected to be signed before the end of August. Once upgraded, the refineries will be capable of processing a wider range of crude oil, including both heavier and lighter grades.

 

The government is also seeking to attract investment in upstream oil and gas exploration, particularly offshore projects. Malik said investors committing more than $100 million to individual exploration wells need consistent policies and greater visibility over the medium term.

 

Pakistan has restarted offshore exploration after a two-decade gap, with companies including Mari Petroleum, Pakistan Petroleum Limited and Oil & Gas Development Company participating in the initiative.

 

Malik also said the government is working with the World Bank on gas-sector reforms, including separating infrastructure from energy businesses and increasing competition. He added that circular debt flows have been kept close to zero without raising consumer electricity tariffs.

 

Meanwhile, Pakistan Petroleum Dealers Association Chairman Malik Khuda Baksh said refinery upgrades could create room for further reductions in diesel and other petroleum product prices. Improved refining capacity and efficiency could increase domestic output, reduce reliance on imported petroleum products and allow cost savings to be passed on to consumers.

 

The government is therefore pushing to accelerate refinery modernisation to strengthen domestic fuel production and reduce dependence on imports.