Dubai firm lands stake Pakistani energy outfit

OIL STAKE: Dubai-based Abraaj Capital secures 40% stake in Pakistan oil services outfit, Bosicor Group. (Getty Images)

Dubai-based Abraaj Capital said on Monday it had acquired a 40% stake in Bosicor Group, a Pakistani holding company aiming to become one of the nation's leading integrated oil firms.

Abraaj said it aims to take advantage of Pakistan’s competitive labour and production costs and strong economic growth - around 8% - to create the nation’s first global-scale refining, petrochemicals and energy conglomerate.

The investment in Bosicor, which includes a shareholding in Bosicor’s two group companies: Bosicor Oil Pakistan Limited and Bosicor Chemical Pakistan Limited, was made through Abraaj Capital’s US$2 billion Infrastructure and Growth Capital Fund (IGCF).

Abraaj’s investment will fund the development of a petrochemical plant and a refining unit based in Pakistan that will provide the Bosicor Group with an initial aggregate refining capacity of 145,000 bpd.

“By addressing the current supply-demand imbalance in the national energy sector through the establishment of a new oil refinery and petrochemical production facility, Bosicor will help ensure that Pakistan continues to realise the promise of sustained economic expansion,” said Amir Abbassciy, chairman of Bosicor.

The deal also includes a minority stake in the group’s subsidiary, BPL, which currently operates the fifth-largest oil refinery in Pakistan with a rated capacity of 30,000 barrels per day (bpd) and a market share of 12%.

IGCF seeks to address the infrastructure requirements of the Middle East North Africa and South Asia region (MENASA) in various sectors, including transportation, education, healthcare, water, manufacturing, petrochemicals, and power and utilities.

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