UAE quits refinery project in Pakistan

The United Arab Emirates (UAE) government has backed out of an agreement with Pakistan to install a US$5 billion dollar, 250,000 barrels per day (bpd) refinery at Khalifa Point near Hub in Baluchistan, Pakistan. Media reports speculated that the country’s reason for withdrawing its support was the Pakistani government’s refusal to allow the UAE-owned International Petroleum Investment Co. (IPIC) to receive more shares in Pak-Arab Refinery Ltd. (PARCO), located in Mehmood Kot, Multan Province in Pakistan. UAE owns a 40% stake in PARCO, while Pakistan owns 60%. PARCO is Pakistan’s largest refinery, capable of refining 100,000 bpd of oil. (January 19, 2009)