Saudi to set up $10bn oil re­fin­ery in Pak­istan

Oman Daily Observer - - BUSINESS -

GWADAR: Saudi Ara­bia plans to set up a $10 bil­lion oil re­fin­ery in Pak­istan’s deep­wa­ter port of Gwadar, the Saudi en­ergy min­is­ter said on Satur­day, speak­ing at the In­dian Ocean port that is be­ing de­vel­oped with the help of China.

Pak­istan wants to at­tract in­vest­ment and other fi­nan­cial sup­port to tackle a soar­ing cur­rent ac­count deficit caused partly by ris­ing oil prices. Last year, Saudi Ara­bia of­fered Pak­istan a $6 bil­lion pack­age that in­cluded help to fi­nance crude im­ports.

“Saudi Ara­bia wants to make Pak­istan’s eco­nomic de­vel­op­ment stable through es­tab­lish­ing an oil re­fin­ery and part­ner­ship with Pak­istan in the China Pak­istan Eco­nomic Cor­ri­dor,” Saudi En­ergy Khalid al Falih told re­porters.

He said Crown Prince Mo­ham­mad bin Sal­man would visit Pak­istan in Fe­bru­ary to sign the agree­ment. The min­is­ter added that Saudi Ara­bia would also in­vest in other sec­tors.

Bei­jing has pledged $60 bil­lion as part of the China Pak­istan Eco­nomic Cor­ri­dor (CPEC) that in­volves build­ing power sta­tions, ma­jor high­ways, new and up­graded rail­ways and higher ca­pac­ity ports, to help turn Pak­istan into a ma­jor over­land route link­ing western China to the world.

“With set­ting up of an oil re­fin­ery in Gwadar, Saudi will be­come an im­por­tant part­ner in CPEC,” Pak­istan Pe­tro­leum Min­is­ter Ghu­lam Sar­war Khan said.

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