Country's largest oil refinery to close down till Nov 18 due to maintenance

• Refinery to remain closed from Oct 10 to November 18.
• Parco caters to 40-50% of country's petroleum needs.
• Facility can process 120,000 barrels of crude oil daily.

KARACHI: Pak Arab Refinery Limited (Parco), the country's largest oil refinery, is set to shut its operations for around 40 days for maintenance and inspection turnaround, The News reported on Thursday.

"The refinery will remain closed for 38 days, starting from October 10 to November 18,” said Parco Managing Director Irteza Qureshi in an interview with the publication a day earlier.

The official noted that the shutdown process has already begun and that the refinery will be completely shut down by Thursday.

As the largest refinery in the country, Parco has the capacity to process 120,000 barrels of crude oil daily and plays a key role in meeting the domestic demand for petroleum products.

"Parco caters to 40-50% of the petroleum needs in the country," said the industry sources.

It is to be noted that Parco is a joint venture between the government of Pakistan (60%) and the emirate of Abu Dhabi (40%). Regarding the long shutdown of the refinery, Qureshi mentioned that Pakistan Refinery and Attock Refinery also experienced shutdowns in January and February this year. He explained that Parco's shutdown was necessary for maintenance purposes.

Meanwhile, Descon Engineering Ltd has been awarded the turnaround contract for Parco's maintenance.

Oil sector insiders noted that government authorities have instructed other refineries in the country to enhance their production of petroleum products due to Parco’s closure, which will last for more than a month, in order to meet demand.

They pointed out that, to address the country's energy needs, adequate storage arrangements are crucial. The refinery undergoes significant shutdowns every three to five years for inspections and necessary upgrades.

The managing director stated that the refinery will remain closed with government approval, and this will not affect the oil supply chain in the country, as necessary arrangements have been made to ensure the continued supply of oil products.

He added that, according to policy, oil companies are required to maintain 20 days’ worth of storage for petroleum products, in addition to the five to six days of stock held at the refineries.