Saudi Arabia plans $10 Billion investment in oil refinery project in Gwadar

ISLAMABAD: According to sources, Saudi Arabia is likely to invest about $10 billion in the establishment of an oil refinery in Gwadar. The government wants to increase the production and storage of petroleum products in the country through this project.

Sources in the Ministry of Petroleum say that this project will be completed in collaboration with Saudi Aramco and Pakistani companies. The investment ratio in the proposed project is also being determined, under which 60 percent will be from Saudi Arabia and 40 percent from Pakistani companies.

Pakistan’s major energy companies PSO, OGDCL, PPL and GHPL will be part of this refinery project. This cooperation will not only increase investment but also bring modern technology to the country.

According to initial estimates, the daily production capacity of the proposed oil refinery can be up to 400,000 barrels. This will help reduce fuel shortages in the country. At the same time, import dependence will also decrease, which will be a positive development for the economy.

The government is considering providing various facilities to make the project more attractive. A proposal to provide tax exemption for 20 years on imported machinery is under consideration.