Development of Kohat Refinery 15000bpd
The province of Khyber Pakhtunkhwa is rich in Oil and Gas reserves and huge quantities have been discovered in the southern belt of the province including district Kohat, Karak and Hangu. Due to the enabling environment created by the Government of Khyber Pakhtunkhwa through KPOGCL the province has become the largest producer of oil in Pakistan. Presently, it is producing more than 50 % of the nation’s crude oil. It is also producing 400 million cubic feet of gas and 510 tons of LPG per day.
Khyber Pakhtunkhwa holds great potential for new exciting discoveries, particularly in Kohat basin which has become main area of focus after the success of discoveries. Most of the province’s area remains unexplored and promises future hydrocarbon prospects. According to one estimate Khyber Pakhtunkhwa has recoverable natural gas reserves of 16 trillion cubic feet and oil reserves exceeding 1.1 billion barrels.
Under the proposed project it is planned to establish state of the art crude oil refinery to fulfill the ever growing demands of fuel in the province as well as country. The refinery will be processing indigenous and imported crude oil to produce Euro-6 compliance hydrocarbon fuels such as; LPG, Naptha base solvent, motor oils, HOBC, kerosene, HSD, furnace oil and sulphur as its bye products. The state of the art EURO-VI crude oil refinery will be the first of the kind in Pakistan. Presently, the province depends upon imported fuel to fulfill its domestic requirements.
The establishment of refinery will have a very positive impact on the province. By increasing oil production substantial revenues will be generated through oil and its bye products. It will generate new avenues for establishment of satellite industries, stimulate local socio-economic development and increase employment in the province. The province will attain marked success in the oil sector with a foreseeable positive impact on infrastructure of under developed areas.
The project will be established on 200 acres of land. The total capital investment is estimated to be US$ 300 million.
The project provides an opportunity for the donor agencies / investors for investment and to recoup the capital investment with profits. It can be executed through preferably Public Private Partnership (BOOT/BOT) or any other mode mutually agreed by both the parties. The project is open for all the state owned, state supported and private entities.
The government of Khyber Pakhtunkhwa will facilitate investors for interaction with relevant agencies and is committed to partner with the investor by providing all basic facilities in execution of project. It is committed to provide competent workforce in this sector, in coordination with the investors. The investors friendly security situation already prevails in the province in the current government.