The United Arab Emirates (UAE) has announced to make “one of the biggest investments in a refinery project” in Hub, Balochistan.
In an interview with Arab News, UAE Ambassador to Pakistan Hamad Obaid Ibrahim Salem Al-Zaabi said his country would invest five billion dollars in the oil refinery project in Pakistan in December.
“It is going to be a $5 billion investment between Mubadala Petroleum Company of Abu Dhabi, Pak Arab Refinery Limited (Parco) and OMV [OMV Pakistan Exploration Gesellschaft],” he said.
The ambassador said the huge investment was agreed upon after extensive discussions between the oil companies. He said Pakistan and the UAE were moving working on fresh projects.
“This project will show the strength of UAE-Pakistan relations and how the UAE is focusing on investment in and future of Pakistan,” Arab News quoted him as saying.
He said both the countries were finalizing the minute details of the oil refinery project.
“Many meetings have taken place regarding this project,” Hamad Obaid said. He said a UAE delegation, headed by the chief executive officer of Mubadala Petroleum, had met with the Board of Investment (BoI) chairman and the petroleum minister a few months ago in Pakistan.
“They have discussed this project in detail. We are going to launch it very soon,” he said.
Last month, in an interview with Express Tribune, National Cleaner Production Center Director and oil expert Dr M Ilyas Fazil had said that oil prices were not set by supply and demand in the market, rather market sentiment towards future oil contracts played a dominant role in deciding the price.
“A benchmark crude or marker crude is a crude oil that serves as a reference price for buyers and sellers of crude oil. Brent, Dubai and West Texas Intermediate are major benchmark crudes. The gravity, the sulphur content and the ease of refining determines the demand for crude and thereby its price,” he had said.