PAKISTAN REFINERY PLANS TO SPEND $445M TO UPGRADE, CEO SAYS

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By Faseeh Mangi

Sept. 12 (Bloomberg) — Co. needs to upgrade refinery not expand, CEO Aftab Husain says in interview by phone in Karachi.

* Design work of isomerization unit has been completed. Project will cost between $40m-$45m and double petrol

production: Husain * Contract may take time to award; construction and

commissioning then to take about 24 months

* NOTE: Project to convert naphtha to more profitable petrol * Upgrading refinery is another project that may cost about $400m.

* Project to upgrade will take time to start. We can’t say at this point when work starts on the plan that requires 36 months for completion: Husain

* Upgrade includes conversion of furnace oil to value added products for sustainable profits

* NOTE: Co. reported net income of 496m rupees in year ended June, the highest in five yrs

* We have optimized level of middle distillates to maximize diesel production that has good margins: Husain

* Last year’s margin signals that refinery should operate at optimum level which was about 75%-80%

* We operate at optimum level depending on economic viability and not maximum level: Husain

Sanie Khan

Sanie Khan holds a deep knowledge of the financial markets in Pakistan. Based in Karachi, he has over 20 years of hands-on management experience in financial technologies and managing operations in the financial sector. He was the General Manager at the Pakistan Stock Exchange (PSX) for 17 years. He along-with senior members of Exchange

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