A global champion for economic growth in Abu Dhabi Read more about Mubadala Investment Company
Headquartered in Karachi, Pakistan, Pak-Arab Refinery Ltd (PARCO) is a fully integrated energy company whose major activities are oil refining, oil and products pipeline and storage. PARCO is a joint venture between the Government of Pakistan (60%) and IPIC (40%) and is one of the largest companies in Pakistan’s corporate sector, with an asset base exceeding Rs. 151 billion (about AED 8.4 billion).
PARCO's major business activities are refining, transportation, storage and marketing, and it is the strategic fuel supplier to Pakistan with a broad portfolio of operational ventures. It has a refining capacity of 100,000 BPD, combined storage capacity of more than one million metric tons, a marketing joint venture with TOTAL (France) and a technical support venture with OMV (Austria). The organisation encompasses Pakistan’s largest refinery and 2,000 km of cross-country pipeline network, including its subsidiary PAPCO.
With the continued support of the Emirate of Abu Dhabi, PARCO has been able to realize a number of energy projects that have contributed significantly to enhancing Pakistan’s economic growth, saving foreign exchange, transferring technology and providing employment.
Its performance can be judged by the fact that it has retained its AAA and A1+ long- and short-term credit rating from PACRA, the Pakistan Credit Rating Agency, for 15 consecutive years – the only company to do so. It was also the first company in Pakistan to receive a PACRA AAA rating. The company set another first when it obtained three simultaneous international certifications: ISO 9001:2008 (Quality Management System), ISO 14001:2004 (Environmental Management System) and OHSAS 18001:2007 (Occupational Health and Safety Management System). PARCO’s Mid-Country Refinery (MCR), Pipeline Division and Corporate Headquarters received Triple IMS Certification within a span of a few months, validating its quality systems, environmental care and employees’ safety and security practices.
PARCO has also established three strategic partnerships in pursuit of its business goals. TOTAL PARCO PAKISTAN LTD (TPPL) is a joint venture between PARCO and TOTAL SA of France to market consumer petroleum products through its national network of retail outlets. At present TPPL has more than 175 retail outlets across the country.
PARCO also markets lubricants throughout Pakistan in association with OMV of Austria. OMV is an oil and gas company engaged in the exploration, production, refining, transportation and marketing of oil and gas.
The third partnership is Pak-Arab Pipeline Company Limited (PAPCO) and a strong example of the success of public-private partnerships. Shell (26%), PSO (12%) and Chevron (11%) joined with PARCO (51%) in providing the US$120 million equity to build and operate a cross-country pipeline system for transporting High-Speed Diesel from Karachi ports to up-country locations. PAPCO was commissioned in March 2005, comprising 817 km of 26” diameter cross-country pipeline, storage tanks, pumps and allied facilities. PAPCO has proven to be highly successful as the main fuel corridor for the country.
Foreseeing the mounting demand for petroleum, oil and lubricant products in Pakistan, PARCO in alliance with IPIC is planning a 250,000 bpd deep conversion refinery with a foreign direct investment of US$6 billion at Khalifa Point near Hub, in Pakistan’s province of Balochistan. IPIC and other UAE Government institutions will have the majority (74%) shareholding in the project, with PARCO holding the remaining 26%.
The development of Khalifa Coastal Refinery at Khalifa Point will be a strategic investment and will play a pivotal role in securing Pakistan’s petroleum wealth. With the construction of marine loading facilities to feed the refinery and support exports, Khalifa Point will also develop into another port capable of handling liquid petroleum cargo, supporting the economic development of Pakistan in general and Balochistan in particular.
Process selection and refinery configuration are based on meeting regional as well as domestic Middle Distillates requirements. The refinery will produce petroleum products of international quality based on Euro IV specifications for improving environmental standards. Khalifa Coastal Refinery is designed to process Heavy Crude, which will be procured from adjoining Gulf countries, including the UAE and Saudi Arabia.
The Khalifa Coastal Refinery will bring many benefits to Pakistan, not least the Foreign Direct Investment of about US$6 billion, which is the largest single FDI made in the country so far. This will bolster much-needed economic activity in a relatively less-developed area. It will also improve the petroleum infrastructure, reduce or eliminate the shortage of diesel, strengthen the supply chain integrity of petroleum products and generate direct and indirect employment during construction as well as the operation phase.