Pakistan State Oil (PSO) has agreed to sell over 30% of its share in Pakistan Refinery Limited (PRL) to China’s United Energy Group (UEG) for a $1.5 billion investment.
The deal aims to double PRL’s refining capacity, increasing it from 50,000 to 100,000 barrels per day. PSO, facing a circular debt issue, will likely offer a 30-35% stake to UEG.
The collaboration includes upgrading the refinery to produce environmentally compliant fuels and aligns with PRL’s commitment to cleaner energy. Licensing agreements with Honeywell UOP and Axens for Euro 5 specifications and a crude purchase agreement with Russia have also been secured.
