Oil refining company Cynergico to upgrade operations to boost domestic production in Pakistan
17 March 2024
Published in: Arab News
Cynergico Pk Limited, a Pakistani petroleum company, will upgrade its operations and increase processing capacity in Pakistan to produce high-profit petrol and diesel products, Pakistani state media reported on Sunday.
Under the project, Cynergico, a subsidiary of Mauritian company Cnergyico Industries Incorporated, aims to double its processing capacity to 50,000 barrels, the state-run Radio Pakistan broadcaster reported.
It will boost domestic oil refining in the South Asian country.
“The upgradation project will be completed by 2028 at an estimated cost of one billion dollars,” the report read.
“The project will reduce dependency on furnace oil and imports of expensive refined products resulting in significant savings in foreign exchange.”
Pakistan, which has been facing a financial crunch for the last two years, is only 16.35 percent self-sufficient in oil production and meets the rest of the demand through costly imports.
In January, the Pakistani energy ministry announced that petroleum exploration and production companies in Pakistan would invest more than $33 million under recently signed petroleum concession agreements (PCAs) and exploration licenses (ELs).
PCAs and ELs have been signed for eight blocks, including Kotra East (2867-8), Murradi (2767-7), Sehwan (2667-19) and Zindan-II (3271-9) with Oil & Gas Development Company Limited (OGDCL), Multanai (3168-3) with Pakistan Oilfields Limited (POL), Sawan South (2668-26) with United Energy Pakistan Limited (UEP), Gambat-II (2668-25) with Joint Venture of Pakistan Petroleum Limited (Operator) and OGDCL, and Saruna West (2666-1) with Joint Venture of POL (Operator), PPL and OGDCL.
These companies would make investments to develop production for blocks with discoveries, besides spending a minimum of $30,000 per year on social welfare schemes in each block in their respective areas, according to the energy ministry.
