ISLAMABAD - To secure country’s energy supply chain, Pakistan State Oil (PSO has signed a memorandum of understanding (MoU) with the Government of Khyber Pakhtunkhwa (GoKP) for the establishment of a state-of-the-art oil refinery in the province, which is expected to be fully commissioned by 2016-17.

The MoU to initiate this landmark project was signed in Peshawar by Additional Secretary, Ministry of Petroleum & Natural Resources, Naeem Malik; CEO & MD - PSO, Naeem Yahya Mir and Secretary Energy and Power-GoKP, Zaffar Iqbal.

As per this MoU, PSO will set up a technologically advanced refinery with a capacity of 40,000 barrels per day (BPD) on about 400 acres of land in district Kohat. The project will be set up through a public-private partnership and will utilize crude oil from nearby indigenous supply sources for production of POL products conforming to Euro IV standards.

In a statement, PSO said that establishment of this refinery will help improve the overall availability of POL products across the country as well as result in sizeable foreign exchange savings for the nation. It shall also increase PSO’s operational base through diversification in the midstream segment and lower distribution cost in the related supply envelops. In addition to these benefits, this refinery will also help create job opportunities for the local populace as well as professionals from various technical backgrounds. It is also expected that substantial foreign direct investment will also take place as a result of this project.

Both the dignitaries were of the opinion that this proposed project will serve as the foundation for future initiatives and suggested to continue efforts to do more for the future progress and prosperity of Pakistan.

Also speaking after the event, Naeem Y Mir said, “By establishing this refinery, PSO has taken yet another step on the road to developing a self-reliant energy supply chain for the country. The company is already working on a number of other projects which coupled with this refinery will help meet Pakistan’s energy needs in the years to come.”