ISLAMABAD: Pakistan Refinery Limited (PRL) and Saudi Arabia’s ED Investment Group are in advanced discussions to establish a joint project, according to sources informed by Business Recorder. This development follows the Prime Minister’s visit to Saudi Arabia in April 2024.
At a recent meeting chaired by Federal Minister for Petroleum Dr. Musadik Masood Malik, updates on the progress of the visit were reviewed. Attendees included representatives from various divisions such as Petroleum, Power, Resources, Railways, SIFC, PPIB, PSO, PRL, WAPDA, and the Pakistan Embassy.
Zahid Mir of PRL reported ongoing interactions with ED Investment Group, including the sharing of a draft Memorandum of Understanding (MoU) and Non-Disclosure Agreement (NDA). The Saudi company plans to visit Pakistan soon for further discussions.
Minister Malik emphasized the need for regular progress reports on KSA-related projects and appointed Waqas Barlas, Director to the Minister for Petroleum, as the focal point for these initiatives.
The Pakistan Ambassador highlighted requests from Al-Tuwaijri, including details on the task force composition from Pakistan and the designation of focal persons for 24 projects pitched to the Saudi delegation. The Saudi Task Force, approved by the Crown Prince, has been shared with the Pakistan Mission.
Additionally, the Ministry of Energy, KSA, prepared a general MoU, approved by their Council of Ministers, to facilitate further negotiations. This MoU expands the scope beyond the 2019 agreement, which covered only alternate energy projects.
MD PSO updated on a tri-party meeting between PSO, Sinopec, and Aramco held on May 23, 2024. Key points included the high capital cost of the project and the need for a revised feasibility study. Sinopec expressed interest in selling refined petroleum products to Pakistan.
Minister Malik and MD PSO agreed that signing a Tri-Party MoU during the Prime Minister’s visit to China would be unlikely.
Managing Director PPIB, Shah Jahan Mirza, mentioned negotiations with ACWA Power for an 1800-MW solar power project. He noted challenges in securing political risk insurance, as current providers are not extending this facility to Pakistan. Feedback on transmission line projects from the Saudis is still awaited.
Chairman WAPDA discussed the Diamer Bhasha Dam project, noting that Saudi due diligence has not yet started, pending approval from the Public Investment Fund (PIF).
Imran Abbasy updated on the BLZ Project, mentioning interest from Astra Mining and Alosais Mining, with barite samples already shared.
The Director General of Planning, Ministry of Railways, reported that PC-II of their project has been approved, with a consultant to be hired by June 15, 2024, and feasibility expected by November 30, 2024. The project is proposed on a revenue-sharing basis.
Story by Mushtaq Ghumman
