Abu Dhabi's IPIC in $5bn oil refinery deal

UAE's investment company part of joint venture for Pakistani refinery project.
Abu Dhabi's IPIC in $5bn oil refinery deal
By Shane McGinley
Mon 16 Nov 2009 12:02 PM

The UAE is to play a key role in building a $5 billion oil refinery on the Pakistani coast, Pakistani officials have confirmed.

The refinery will be built in the province of Baluchistan, in south-western Pakistan, according to the Saudi Press Agency.

“The major contentious issues have been resolved and the project will soon be kicked off,” said a senior official of Pakistan’s Ministry of Petroleum and Natural Resources.

The refinery, known as the Khalifa Coastal Refinery project, is a joint venture between the Abu Dhabi state-owned International Petroleum Investment Company (IPIC) and the Pak-Arab Refinery Limited (PARCO), which is jointly owned by Pakistan and Abu Dhabi.

PARCO will hold 24 percent of shares and IPIC the other 76 percent in the refinery, while the Pakistani government will own 60 percent of PARCO’s share.

DPA, the German Press Agency, also reported that the refinery will have a daily production capacity of 250,000 barrels.

With the completion of the refinery, Pakistan’s capacity would be doubled from the current 248,506 barrels per day.

Last month, IPIC reported that profits for the first half of the year surged more than 15-fold to $2.12 billion following a one-off sale of Barclays instruments.

In October, the IPIC also signed a memorandum of understanding with the Oman Oil Company for the potential development of a refinery and petrochemical complex in the sultanate.

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