Saudi Aramco to construct Pakistan’s largest oil complex at Gwadar
The
administration apparently sought to finish the basic paperwork before its term
ends in two weeks in order to implement the greenfield refinery project at the
important Gwadar Port with Saudi oil giant Aramco.
Government
Holdings Private Ltd (GHPL), Pakistan State Oil (PSO), Pakistan Petroleum Ltd
(PPL), and the state-owned Oil and Gas Development Company Ltd (OGDCL) joined
forces to support the Saudi company's decision to make a significant investment
in Pakistan. The four SOEs would participate in the initiative by investing
in equity.
Just two new
refinery projects have been constructed in Pakistan in the past ten years,
according to the Petroleum Division. In actuality, only about 11 million tonnes
of the 20 million tonnes of refining capability are being used.
Despite the
fact that independent specialists estimated Pakistan's demand for gasoline and
diesel to increase to over 33 million tonnes annually by 2023.
The above-mentioned refinery will also be granted
a 20-year tax holiday and will not be subject to any requirements for
Engineering Development Board certification despite being exempt from customs
duties, surcharges, withholding taxes, general sales taxes, other ad valorem
taxes, or any other levies and duties on the import of any equipment or
materials needed for the refinery projects.
Musadiq
Malik, the minister of state who was present at the MOU signing ceremony,
claimed that the Saudi oil company's desire to invest all of its equity in the
multibillion-dollar refinery project encouraged the Pakistani government to
choose a joint venture with significant SOEs.
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