Riyadh suggests Pakistan in approaching SINOPEC for $10 billion refinery project

Riyadh has suggested to Islamabad that they should approach China’s SINOPEC for the green refinery project of $ 10 billion. This investment could prove to be very fruitful for Pakistan and the Petroleum Division is already assessing the investment interests of SINOPEC. Moreover, the SIFC has also been tasked to help the Chinese firm if needed.

Riyadh suggests Sinopec

Saudi Arabia has shown interest in the green refinery project as they’ve asked Islamabad to keep an eye on SINOPEC for this massive $10 billion dollar project. They’ve also recommended the ECP to Sinopec as well. According to sources, Saudi Arabia also wants the Engineering, Procurement, and Construction contract to be given to SINOPEC as well.

Sinopec is already providing services to Saudi Arabia and the Saudi Government and the public is more than satisfied with Sinopec’s work. They’ve provided roads, bridges, oil pipelines, and many other geophysical oil exploration infrastructures. Due to their outstanding products and services, Sinopec has already made a name for itself as it’s already deployed in many cities of Saudi Arabia.

The SIFC has also ordered the Petroleum Division to look into the investment interests of Sinopec and facilitate them if the Chinese company is interested and move forward with all the necessary proposals required. They have also been tasked for finding other reputable parties for the investment and the findings will be discussed in the next SIFC Apex committee.

China’s Road and Bridge Corporation

However, on 27th July this year, the CRBC had already signed an MoU with the government to build the refinery based on the EPC-F model but now due to Saudi influence and interest, the government wishes to bring in Sinopec.

The construction of the refinery is on the 30:70 equity-loan scenario. This means that out of $10 billion, loan would be $7 billion while the equity amount would be $3 billion. The Saudi Aramco is set to share the equity with Pakistan with a distribution of $1.5 billion each.