Pakistan State Oil (PSO) Managing Director Naeem Yahya Mir has said that he aims to make PSO number one company of the country within next 2 years. He accused that the cartels of companies which he had broken were playing blame game against him and PSO.
While addressing a press conference, he said that PSO will set up a refinery of 40,000 barrels capacity that will refine the fuel of Euro-4 quality. He also said that cartels were creating hurdles in way of new projects that can make PSO a global energy company.
PSO MD quoted the example of India that it was starting so many projects on daily basis but in Pakistan cartels create problems in any development work due to their vested interests. Mir, while pledging to make PSO an international company, said that Pakistani refineries were old and they need to modify to meet current requirements. “Byco refinery was set up by dismantling old plants and Parco is only refinery that is efficient”. He said that India had access to the markets of Japan and United States (US) by setting up refineries there and so will be the case with the Pakistan State Oil in near future by following the same model.
He claimed to have broken the cartels of some companies by allowing 2.7 per cent of Oxygenate in tenders and saving Rs 3 billion per year. He accused that now those cartels were playing blame game against him and PSO as a company.
While mentioning circular debt issue, Mir said that the receivables of PSO from the energy sector had now come down to Rs 120 billion from Rs 240 billion. He said that circular debt was grave issue bold steps must be taken to cope with this it issue because it was creating hurdles in supplying uninterrupted energy supply to masses.
By focusing on exploration sector, he said, country could save billions of rupees as country imports 6 million tones of fuel, 3.5 million tonnes of diesel, 1.5 million tones of petrol and 0.5MT jet fuel. Mir said that Economic Coordination Committee had approved to establish blending plants in the country and for blending local companies would be preferred.
He stated that by eliminating the addition of detergent additives in Mogas and Diesel, thecCompany would save approximately Rs 635 million/year while savings of Rs 450 million/year were also expected through the stoppage of war premium insurance payments on POL products imports. “Additionally, by uplifting products from local sources/refineries, foreign exchange of approximately $200 million would be saved annually and a further Rs 500 million will be saved by engaging the national flag carrier PNSC for transport of furnace oil, ”he added.
Moving forward, the MD-PSO outlined some of the new initiatives PSO has undertaken under his leadership including signing a Contract of Affreightment (CoA) with Pakistan National Shipping Corporation (PNSC) for importing furnace oil from foreign ports, development of a new oil tanker mooring point and storage facility at Hub which will increase national storage capacity and reduce congestion at the existing jetties, establishment of over 100 LPG Auto gas stations in the upcoming year and agreements with PARCO, BYCO and Bakri Trading for the acquisition of POL products.