Sponsors inject additional equity of US$25 mln in Byco oil Pakistan Limited

Karachi: Sponsors of Byco oil Pakistan Limited BOPL injected additional equity of around US$25 million to ensure timely completion of oil refinery project in the country.

With this additional fund injection into the company, debt/ equity ratio will be about 28:72 which not only depicts extremely well capitalized balance sheet, but also unparalleled sponsor commitment, as infrastructure projects in the country are generally being financed with over 70% debt, and less than 30% equity, a press release said Thursday.

BOPL is expected to commence pre-commissioning, commissioning and start process of its refinery in early 2012 which will have crude processing capacity of 120,000 barrels/ day and will be largest in Pakistan. Byco Group already operates an existing refinery of 35,000 barrels/day and a petroleum marketing network comprising of till presently 213 retail outlets.

Byco will pioneer introduction of Isomerisation technology in Pakistan which will help value add surplus naphtha, presently being exported into motor gasoline. Cumulatively, Byco will have crude oil refining capacity of 155,000 bpsd providing substantial import substitution in terms of supplying domestic market with refined petroleum products.

The refinery is more than 94% complete, and some of units already been tested. Also in construction progress with refinery is associated Single Point Mooring project SPM being set up for first time in the country which will revolutionize handling of petroleum and oil products. The facility is being setup to allow handling of imported crude oil and other petroleum products through SPM – an open sea anchorage with sub-sea and sub soil pipelines connecting it to on-shore facilities.

Future plans include setting up of an integrated petrochemical plant in vicinity of refineries. This shall be first Petrochemicals Complex in Pakistan with initial capacity of 27,300 bbls per day to produce aromatics such as Raffinate, C-9, Benzene, Mixed Xylene, Para Xylene & Ortho Xylene to meet the country’s deficit requirements.

Byco Group is a joint venture between Byco Busient Inc. and Abraaj Capital Limited of UAE. Total investment to date by Byco Group including Foreign Direct Investment is around $430 million. This huge investment in a challenging economic scenario reflects sponsors confidence and optimism in the country’s ability to turnaround its economy in near future. New refinery will not only help to bridge energy gap, create new jobs and save foreign exchange.

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