Yahya Mir said that the refining capacity of the planned refinery would be 40,000 barrel per day. The PSO was entering into a new phase, from Oil Marketing Company (OMC) to a distribution company, he said. Briefing the committee, he said that over the past four years, the PSO hired some 308 persons at various levels who had been now regularised by the company as per the directives of the government.
On a query, Mir said that international crude oil prices were expected to remain stable for the next six months. Replying to questions raised by committee members regarding Transparency International's objections over PSO's agreement with Bakri Trading, Mir said: "I must assure you that there is no irregularity in this contract." He said that the Pakistan State Oil (PSO) awarded the contract directly to the BTCPL without issuing any tender. The agreement was valid for a period of five years and might be extended after the expiry of the period. Under the agreement, PSO will purchase 1.4 million tons of furnace oil from the BTCPL annually.
The committee was also informed by the MD that the company had signed a contract with Pakistan National Shipping Corporation (PNSC) for importing furnace oil in a bid to save valuable foreign exchange. Highlighting PSOs future plans and strategy, Mir said that PSO had decided in principle to set up an oil refinery in KPK and in this regard the company had requested the provincial government for allocation of land, adding that within next few days the representatives of the company will inspect different land in Khyber Pakhtunkhwa.
"PSO intended to set up itself as the leading company in Pakistan within two years, a regional player in four years and a member of global oil conglomerates within six years", it was informed. He cited the signing of a Contract of Affreightment (COA) with Pakistan National Shipping Corporation (PNSC) for importing furnace oil, development of a new oil tanker mooring point and storage facility at Hub, which will increase the national storage capacity and reduce congestion at existing jetties, establishment of over 100 LPG auto gas stations over the next year and agreements with Parco, Byco and Bakri Trading for acquisition of POL products. Pakistan State Oil (PSO) also planned to establish a regional Joint Venture (JV) aviation company in the Middle East and was looking to expand it into the coal business in partnership with other companies.