Summary ISLAMABAD: Naeem Yahya Mir says PSO will follow an ambitious expansion strategy.
He pledged to make the national giant an integrated energy company by incorporating all aspects of the product supply chain including exploration, refining, distribution and shipping.
MD PSO Naeem Yahya Mir, stated during a press conference here on Tuesday highlighted the future expansion strategy for the oil giant.
He said that oil refineries are old and their configuration is not profitable therefore we have to modify them and it is need of the hour to develop them.
He said that by focusing on exploration sector we can save billion of rupees as country import 6 million ton fuel, 3.5 million ton diesel, 1.5 million ton petrol and 0.5 jet fuel.
MD PSO said in 30 years we have not established shipping in the country only “Pak Shipping corporation” is operational in the country, adding that, if shipping started then country can earn billion of rupees.
He said that Economic Coordination committee had approved to establish blending plants in the country and for blending local companies would be preferred.
Naeem Yahya Mir said that blending plants would be established within the time frame of four years there till that time PSO has signed an agreement of five year with Bakeri.
He said that cartels are major hurdle in the formation of new projects in the country.
Furthermore, the MD stated that he had embarked on a program of cutting out middle-men and cost rationalization at PSO. He stated that by eliminating the addition of detergent additives in Mogas and Diesel, the Company would save approximately Rs. 635 Million/year, savings of Rs. 450 Million/year were also expected through the stoppage of war premium insurance payments on POL product imports.
Additionally by uplifting products from local sources/ refineries, foreign exchange of approximately $200 Million would be saved annually and a further Rs. 500 Million will be saved by engaging the national flag carrier PNSC for transport of furnace oil.
Answering to a question, MD PSO said that company is introduced public private partnership in the country and said that we have to bring flexibility in our system in we want to develop our system. He said that power plants in the country are using most expensive fuel for power generation plants in the country which is also affecting performance of these plants. Talking about circular debt, MD said that we have to take bold steps to minimize the impacts of circular debt in the country.
Through this, the company will minimize dependence on foreign supply chains and follow the model of successful companies which have integrated multiple supply chain aspects within themselves.
Mr. Naeem also said that PSO can only achieve this dream by connecting with upstream partners, introducing innovative ideas to beat the competition downstream and establishing control of its own product supply chain.
Furthermore, the CEO&MD outlined his goals of establishing PSO as the leading company in Pakistan within a period of two years, a regional player in four years and a member of the ranks of global oil conglomerates such as PETROCHINA, PETRONAS-Malaysia, PETROBRAS -Brazil etc within six years.
Moving forward, the MD-PSO outlined some of the new initiatives PSO has undertaken under his leadership including signing a Contract of Affreightment (COA) with Pakistan National Shipping Corporation (PNSC) for importing furnace oil from foreign ports, development of a new oil tanker mooring point and storage facility at Hub which will increase national storage capacity and reduce congestion at the existing jetties, establishment of over 100 LPG Auto gas stations in the upcoming year and agreements with PARCO, BYCO and Bakri Trading for the acquisition of POL products.
Other major projects listed at the conference included establishment of a modern EURO IV capacity refinery in Khyber Pakhtunwa, acquisition of a refinery in the south of the country and setting up a Base II lubricant refinery. He also plans to establish a regional JV Aviation Company in the Middle East and is looking to expand into the coal business in partnership with other companies.
