Karachi: Byco Oil Pakistan Ltd. (BOPL) is in process of completion of a 120,000 bpd of oil refinery located near Karachi and almost 94% work has been finished.
According to Alfalah Securities Limited, in this regard, USD 25 mn have been recently injected in BOPL by the sponsors to ensure a timely completion of this project. Byco Group is a joint venture between Byco Busient Inc. and Abraaj Capital Limited of the UAE.
The debt/equity ratio will be around 28:72. The pre-commissioning, commissioning and start up process of the said refinery is expected in early 2012. Byco Group has a refinery of 35,000 bpd and a petroleum marketing network comprising 213 retail outlets.
Byco is adding isomerisation technology which will help convert naphtha, presently being exported, into motor gasoline. Going forward, the group also intends to set up integrated petrochemical plant with an initial capacity of 27,300 bpd to produce aromatics such as Raffinate, C-9, Benzene, Mixed Xylene, Para Xylene and Ortho Xylene. This bodes well for the Byco Group though this benefit will not be directly reflected in the listed company Byco Petroleum Ltd. which operates its old refinery.