United Energy Group (UEG) of China has agreed to acquire a more than 30% stake in PRL from state-run oil marketing company PSO, reported the Express Turbine.

PSO currently holds a 63.6% stake in PRL, a hydro skimming refinery situated on the coastal belt of Karachi, Pakistan.

The refinery is equipped to process various imported and local crude oil to meet the country’s strategic and domestic fuel requirements.

The sale forms part of PSO’s efforts to attract $1.5bn (Rs426bn) of investment to support the refinery expansion and upgrade plan.

PSO forms part of a joint venture with Pakistani companies that is further developing the refinery in a collaboration with Saudi Arabia, according to the Express Turbine.

The refinery upgrade project aims to produce environmentally compliant Euro 5 high-speed diesel (HSD) and motor sprit (petrol).

The upgrade project is expected to increase the refinery’s petrol production from 250,000 tonnes annually to 1.5 million tonnes.

Production of HSD at the refinery is also expected to increase to approximately two million tonnes per year from the current 600,000 tonnes.

In October 2023, PRL signed a memorandum of understanding with UEG to formalise their collaboration.

The refinery has a processing capacity of 50,000 barrels per day of crude oil into a variety of distilled petroleum products including furnace oil, kerosene oil, high speed diesel, jet fuel and motor gasoline, among others.

Recently, PRL signed a crude purchase agreement with Russia.

Under the agreement, PRL will purchase crude oil on commercial terms from Russia, with first cargo expected to be received this month.