Pakistan Refinery Limited


Pakistan Refinery Limited is a Pakistani oil refinery based in Karachi. It is listed on the Pakistan Stock Exchange.

History

In the late 1950s, the Soviet Union offered to assist Pakistan in constructing an oil refinery, on the condition that the facility would process only oil imported from the Soviet Union. In response, the Government of Pakistan engaged private sector companies operating in the country and proposed a joint venture to establish a refinery in Karachi. The private companies accepted the government's proposal as an alternative to the Soviet offer. Accordingly, in September 1959, the Government entered into an agreement with a consortium of four oil companies, Burmah Oil Company, California Texas Oil Corporation, The Shell Petroleum Company, and Standard Vacuum Oil Company, for the construction of an oil refinery at Korangi, Karachi. The four companies subsequently incorporated Pakistan Refinery Ltd., which was tasked with the construction and operation of the refinery at a cost of about $35 million. The consortium subscribed to 60 percent of the shares of the refining company, while the remaining 40 percent were subscribed by private investors following an initial public offering on the Karachi Stock Exchange.
In 1964, Pakistan Refinery began its operations and it was inaugurated by then President Ayub Khan. The refinery was initially designed with a capacity of 1 million tons of crude oil per annum, which was later expanded to 2.1 million tons per annum.

Products

Pakistan Refinery refines and sells petroleum products. It has a capacity of refining 47,000 barrels per day of crude oil into a range of petroleum products. The refinery produces high speed diesel, furnace oil, motor spirit, Naphtha, kerosene, jet fuels and liquified petroleum gas. All the products are sold locally except for naphtha which is exported. Using its distribution network at Keamari, the finished products are supplied by the company to oil marketing companies of Pakistan - Shell Pakistan, Pakistan State Oil and Total Parco.