http://www.nation.com.pk/daily/may-2006/10/bnews1.php


Saudi, Kuwaiti Cos lobbying to set up $2b refinery at Gwadar

From SHAIQ HUSSAIN

ISLAMABAD - With inauguration of Gwadar seaport scheduled for early June, top Saudi and Kuwaiti firms have started intensified lobbying for the construction of two billion dollars mega oil refinery near the port.
Pakistan’s economic managers approved the setting up of oil refinery in Balochistan, last month. This mega project will be built in Hub district adjacent to the Gwadar seaport.

“Gwadar seaport is expected to be inaugurated early next month but it has already become the hub of great economic activity with leading Saudi and Kuwaiti firms contending for the construction of mega oil refinery there,” said the official sources here.

The sources said the Saudi and Kuwaiti firms would participate in the bidding through international competitive bidding on Build On and Operate (BOO) basis. Top Saudi leaders including King Abdullah had talked to Pakistani leadership as for their profound interest in Gwadar Port whereas Kuwaiti amir, who will reach Pakistan on May 19 on a three-day visit, would also discuss the matter in detail with President Pervez Musharraf, the sources said.

He said the refinery to be commissioned by 2010 would have a refining capacity of 13 million tons of petroleum products, which would be higher than the country’s total existing capacity of 12.8 million tons.
Apart from keen interest shown by the Saudi and Kuwaiti firms in oil refinery, several companies from Dubai and China have also conveyed their keenness to Pakistani government in the operating rights of the Gwadar port, according to the official sources.

The sources said a Dubai-based firm is actively pursuing its dialogue with the government in this regard as it considers itself most suitable because of its understanding of operating the world’s busy ports. However, he declined to name the firm.

On the other hand, China, the major financial contributor in the construction of Gwadar Port, was also keen that some Chinese company should have the rights of operating the new port, he added.
The sources said that many companies have submitted their bids for operations rights and the biding would be held in a free, fair and transparent manner.

To a question, the official said that Gwadar Port would begin handling commercial vessels in June. He added that the terminal facilities for container, general cargo and bulk cargo handling have already been established there.

The inauguration of Gwadar Port was delayed in the past due to precarious law and order in Balochistan but this time around the government was determined to go for it.

its indeed is good news. also i arab nations are now realising wat oppotunities pakisan gives for thier investment. its just the begning and hopefully much more will come.

excellent news for pak economy!

So what do guys think?

Saudi? They have a wealth of experience in the oil industry and they are one of our strategic allies.

Kuwait? Their experience is somewhat limited in the oil industry because most of the work is conducted by foreign nationals and these firms from abroad have too tight of a grip over their industry for my liking.

China? Our friends in arms and have been our greatest ally ever since our creation. Chinese firms have been bidding for energy contracts the world over and bring expertise with them which is unparalleled elsewhere.

Dubia? They already run the port so why not the oil refineries?

I would go weigh it up between China and Saudi, however China is a joint stake holder in the port and has done a great deal for its construction and is already firmly established. The Saudi's have not had their foot in the door yet when it comes to Gwader and would feel privileged we have also thought of them.

there are two ways to look at this. Firstly, the Saudis already have sizeable investment plans in Pakistan whereas the Kuwaitis have very little. The more we diversify in terms of investment origin the better it is for us. If the Saudis, Chinese and others invest in Gawadar it will truly become a multi-national effort and the monopoly on one will be stopped.

however, the other way to look at it is that if the Saudis make more and more investment in Pakistan then they will invest more to protect and grow on what they have invested and become greater stakeholders in Pakistan. However, if they snap up all the choice offerings then there will be less competition and possible less innovation. Is it wise to allow one country to have a monopoly on a Pakistani need or asset?

those are the choices. Personally I prefer the first one. More countries that invest the more countries will invest. Competition is good.

Agreed.

Is this the same refinery that was supposed to be built in Hub? or is this a different one?

Is this the same refinery that was supposed to be built in Hub? or is this a different one?

Sharif .. i think it is the same one but the size is increasing !

I seems to be double of what was already envisaged ! (but i might be wrong) !