Pakistan Eyes $5 Billion Refinery Investment Agreements
Government Revives Offshore Oil Exploration After Nearly Two Decades
LAHORE: (Finance Desk) – Petroleum Minister Ali Pervaiz Malik has said Pakistan is expected to secure refinery investment agreements worth around $5 billion from next month, as Turkish Petroleum prepares to resume offshore drilling activities in Pakistani waters later this year.
Speaking at a ceremony in Lahore on Sunday, the minister said the government was working to create a more attractive investment environment for the petroleum sector, particularly after years of limited investment in the country’s refining industry.
Malik said the agreements expected from next month would involve actual investment commitments rather than memoranda of understanding (MoUs). He expressed confidence that international investors would play a key role in upgrading Pakistan’s ageing refineries and improving their overall efficiency.
According to the minister, the initiatives form part of a broader government strategy to increase domestic oil and gas production, modernise refining infrastructure and reduce Pakistan’s dependence on imported energy.
Turkish Petroleum to Resume Offshore Drilling
Malik also announced that offshore oil and gas exploration is set to resume after an interruption of nearly two decades, with Turkish Petroleum preparing to begin drilling operations in Pakistani waters.
The company is expected to bring a seismic survey vessel to Pakistan as part of the exploration programme. The minister said drilling could begin in September or October, marking an important step towards reviving offshore energy exploration.
Turkish Petroleum was among the companies awarded offshore acreage during Pakistan’s offshore licensing round, under which 23 offshore blocks were awarded.
The arrival of the seismic survey vessel is expected to support exploration in Pakistan’s offshore frontier and potentially attract further investment in the energy sector. The government hopes new exploration activity will help identify indigenous oil and gas reserves and reduce the country’s reliance on imported fuel.
Refineries Need Major Upgrades
The petroleum minister said Pakistan’s existing refineries had suffered from decades of insufficient investment and were operating with outdated technology.
He noted that several refineries still rely on older hydro-skimming technology and require substantial investment to expand capacity, improve efficiency and enhance the quality of petroleum products.
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