Pakistan has taken a decision to increase petroleum storage, with an expected investment of $10 billion from Saudi Arabia for the establishment of an oil refinery in Gwadar.
Sources in the Ministry of Petroleum said Saudi Arabia is likely to invest in the proposed refineries in Gwadar. Saudi Aramco plans to set up the refinery in collaboration with Pakistani companies.
According to sources, 60 per cent of the investment will be made by Saudi Arabia, while 40 per cent will come from Pakistani firms. The project is set to include PSO, OGDCL, PPL and GHPL.
The proposed oil refinery is expected to have a production capacity of up to 400,000 barrels per day. A proposal has also been put forward to grant a 20-year tax exemption on imported machinery for the investment.
