ISLAMABAD: Petroleum Minister Ali Pervez Malik said Pakistan expects companies to begin signing formal agreements worth $5 billion next month to modernise the country’s ageing oil refineries.
Speaking to the media on Sunday, Malik said the government would now move beyond memorandums of understanding and secure formal investment commitments. “From next month, you will see $5 billion investment agreements being signed, not MoUs,” he said.
**Government Targets Major Refinery Modernisation**
The minister said investors would raise capital internationally and support efforts to transform Pakistan’s outdated refineries. He noted that the country had failed to make sufficient refinery investments during the past seven decades.
As a result, Pakistan continues to rely on ageing, low-capacity hydro-skimming refineries. Moreover, the country previously lacked a comprehensive policy to attract investment for deep-conversion facilities.
Malik said a new refinery policy has now received approval with his assistance and through the cabinet committee on energy chaired by Prime Minister Shehbaz Sharif. Therefore, the government expects the policy to create conditions for major investment in the sector.
The minister stressed that modernising refineries remains essential for improving domestic refining capacity and reducing dependence on imported petroleum products.
**Turkish Company to Begin Offshore Drilling**
Meanwhile, Malik confirmed that Turkish Petroleum will begin offshore drilling in Pakistan’s territorial waters during September or October. The Turkish state-owned energy company is involved in hydrocarbon exploration, drilling and production.
According to the minister, the offshore project could attract between $120 million and $130 million in investment. Furthermore, successful oil discoveries could reduce Pakistan’s dependence on imported energy.
Malik added that several international companies have also approached the government to explore potential oil reserves onshore. Consequently, Pakistan expects increased foreign investment and exploration activity to strengthen its energy sector.
The government hopes that refinery modernisation and new exploration projects will improve energy security, attract international capital and support long-term economic growth.
