The United Arab Emirates ambassador to Pakistan Hamad Obaid Ibrahim Salem Al-Zaabi said that the UAE plans to invest $5 billion in an oil refinery project in Pakistan by the end of 2019. He said this project will show the strength of UAE-Pakistan relations and how the UAE is focusing on investment in and future of Pakistan.
Pakistan has sought local and foreign investment in oil and gas sector, we are going to launch very soon one of the biggest investments in a refinery project in Hub (a town in Baluchistan). It is going to be a $5 billion investment between Mubadala Petroleum Company of Abu Dhabi, Pak Arab Refinery Limited (PARCO) and OMV [OMV Pakistan Exploration Gesellschaft], Al-Zaabu added.
UAE is also offering good rates to oil and gas exploration and production companies.
“The two governments are finalizing the minute details of this refinery project. Many meetings have taken place regarding this project,” adding that a UAE delegation, headed by Musabbeh Al Kaabi, the chief executive officer of Mubadala Petroleum, visited Pakistan a few months ago and met with the board of investment chairman and Pakistan’s petroleum minister. “They have discussed this project in detail. We are going to launch it very soon,” Al-Zaabi said.
PARCO Coastal Refinery is among UAE’s major investments in the country. It was incorporated in Pakistan in May 1974, as a public limited company. Today, PARCO is considered the fulcrum in Pakistan’s strategic oil supply and logistics. Mubadala Petroleum is an international oil and gas company based in the UAE. The plan is to set up a deep-conversion, state-of-the-art refinery that would have an output of 250,000-300,000 barrels per day. Al-Zaabi said the project was the result of extensive discussions between Mubadala Petroleum and Pakistan’s petroleum ministry along with PARCO and OMV.
In April a UAE-based oil and gas company Mubadala Petroleum has also expressed its interest in supplying LNG, oil and gas exploration projects and establishment of first propylene gas plant in the country. Mubadala Petroleum Chief Executive Officer Musabbeh Al Kaabi expressed the company’s interest in the projects during a meeting with then Minister for Petroleum and Natural Resources Ghulam Sarwar Khan.
Musabbeh Al Kaabi, the chief executive officer of the Abu Dhabi government-owned Mubadala Petroleum and Petrochemicals Investment Company while talking with UAE based largest news network “The National” said that we are working with our Pakistani counterparts on the engineering studies of the state of art Oil refinery. And we are waiting for FID [final investment decision] in the near future. UAE backed Pak Arab Refinery will be installed near Hub city Located in the Lasbela District of Baluchistan province of Pakistan by the end of 2019, a project that could cost up to $6 billion (Dh22.04bn).
Abu Dhabi owned Mubadala is a pioneering global investor, deploying capital with integrity and ingenuity to accelerate economic growth for the long-term benefit of Abu Dhabi. Abu Dhabi’s leading strategic investment company, Mubadala is active in 13 sectors and more than 30 countries around the world, creating lasting value for its shareholder, the Government of Abu Dhabi. its portfolio includes global industrial champions in sectors such as petroleum & petrochemicals, aerospace, satellite communication, semiconductors, metals & mining, renewable energy and utilities, and the management of diverse financial holdings.
Arif Qureshi is Editor Diplomatic News Magazine “The Fortress” He can be reached at firstname.lastname@example.org