The Petroleum Division has requested a 6-month extension from the Cabinet Committee on Energy (CCOE) for local refineries to finalize Implementation Agreements (IAs) under the amended brownfield refineries’ policy 2023. This move aims to accommodate major players like Pak-Arab Refinery Company (PARCO) and Cenergyico, enhancing refining capabilities but delaying $5-6 billion investments.
The initial deadline of April 22, 2024, for signing IAs was missed by PARCO due to pending decisions by its Board of Directors (BoD). The proposed extension allows PARCO to finalize its upgrade plans and enables Cenergyico to resolve dues with FBR and Finance Division.
The government’s up-gradation policy targets eco-friendly Euro-V fuels and reducing furnace oil production. A summary has been sent to CCOE for approval after input from Ogra, Law Division, Planning Commission, and Finance Division.
Adil Khattak, MD of Attock Refinery Limited, expressed concerns over delays and urged timely facilitation for willing refineries. The total investment could reach $6 billion with participation from PARCO and Cnergyico.
The government is actively engaging with PARCO’s BoD and exploring settlements with Cenergyico to ensure policy effectiveness and investor confidence.
Story by Khalid Mustafa
