New Oil Refinery Start Production in October 2012.

[My-Analogous]

• Pak-Arab Refinery Limited (MCR), 100,000 bbl/d (16,000 m3/d)
• National Refinery Limited (NRL), 64,000 bbl/d (10,200 m3/d)
• Attock Refinery Limited (ARL), 46,000 bbl/d (7,300 m3/d)
• Byco Petroleum Pakistan Limited (Byco), 155,000 bbl/d (24,800 m3/d) (120,000+ 35,000 old one)
• Pakistan Refinery Limited (PRL), 50,000 bbl/d (7,900 m3/d)
• Enar Petroleum Refining Facility (Enar), 3,000 bbl/d (480 m3/d)

Total production 418,000 bbl/d (66,880 m3/d) out of required quantity 460,000 bbl/d (73,600 m3/d)

Byco in Brief

Byco is Pakistan’s emerging energy companies engaged in the businesses of oil refining, petroleum marketing, chemicals manufacturing and petroleum logistics. Headquartered in Karachi, we are serving our mission to fulfill the energy demand within and beyond borders.
Companies under Byco umbrella are:

• Byco Oil Pakistan Limited (BOPL)
• Oil Refining & Chemical Manufacturing
• Byco Petroleum Pakistan Limited (BPPL)
• Oil Refining & Petroleum Marketing
• Byco Terminals Pakistan Limited (BTPL) formerly Universal Terminal Limited)
• Infrastructure & Logistics

We are engaged in manufacturing of a wide range of petroleum products with the objective to achieve sustainable productivity, profitability and high standards of care for environment, health and safety.

Byco's operational refinery has a capacity to refine 35,000 barrels a day of crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil. We are also expanding our refining complex by setting up another refinery with the capacity of 120,000 barrels per day which is near to completion.
We take pride in having the largest capacity crude oil storage tanks in the country. Our petroleum distribution network supports movement of petroleum products and provide greater economies of scale.

Our marketing network supports retail outlets in more than 80 cities all over Pakistan and is an emerging leader in oil marketing sector of our economy.

Our diverse and highly skilled workforce consists of approximately 600 dedicated employees shared among Byco companies.

Ownership Structure

Abraaj Capital Limited (ACL) 40%
Byco group Pakistan Ltd 60 %

Company Histroy

Byco Group was founded by the Founder Chairman, Mr. Parvez Abbasi (Late) in mid-90’s with the vision to pioneer the change in the energy sector of Pakistan. With his vision, the company Byco Petroleum Pakistan Limited was formed in January 1995 as public limited company.
Byco installed its first oil refinery with a 30,000 barrels a day at Mouza Kund, Hub Balochistan and started its commercial production from July 1, 2004 with various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil.
In 2008, the company decided to enter into the Petroleum Marketing Business and set up the first retail outlet, and since then the retail network has grown immensely.

After the first refinery implementation, the group decided to commence another project to implement a 120,000 barrels a day refinery under the new company Byco Oil Pakistan Limited in 2008.

The group also brought an aromatic plant to be implemented in near future.
In February 2008, realizing the immense potential that Byco companies possesses, Abraaj Capital Limited (ACL), a leading private equity firm of Middle East, North Africa and South Asia (MENASA) invested in private equity.

Historical Highlights

1995Incorporation of Byco Petroleum Pakistan Limited (BPPL)
Byco Petroleum Pakistan Limited was incorporated in Pakistan as a public limited company on January 09, 1995 and was granted a certificate of commencement of business on March 13, 1995. The shares are listed on Karachi, Lahore and Islamabad Stock Exchanges.

2001Relocation of BPPL Refinery
Commencement of construction of refinery (ORC I).

2004Commencement of commercial operations
The Company started its commercial production from July 1, 2004 refining crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil.

2006SAP Implementation
SAP enterprise resource planning, one of the leading ERP software is active with strong presence in the Organization since 2006. This has enhanced system efficiencies by providing real time information to the Management for decision making.

2007First Retail Outlet
Byco commenced the sale of petroleum products with the establishment of its first retail outlet in July 2007 near Sukkur.

2007Isomerization Unit
Byco Petroleum Pakistan Limited acquired first Isomerization Unit in the Country.

2008Revamp and Debottlenecking
BPPL Refinery Capacity was revamped and debottlenecking was done.

2008Joint venture with Abraaj Capital Limited
Abraaj Capital Limited (ACL), a leading private equity firm of Middle East, North Africa and South Asia (MENASA), joined hands with Byco group. Under the agreed arrangement, Abraaj acquired 40 % share in Byco group.

2008Relocation of Byco Oil Pakistan Limited (BOPL) Refinery
Commencement of construction of 120,000 bpd refinery.

2009Petroleum Marketing Business
Byco Petroleum Pakistan Limited entered into the Oil Marketing arena by formally relaunching its Petroleum Marketing Business formerly Oil Marketing Unit.

2009Completion of Storage Tanks
Byco Petroleum Pakistan Limited built the largest capacity Storage Tanks in the country.

2010Acquisition of BTPL (formerly UTL) by Byco Petroleum Pakistan Limited
Byco Petroleum acquired 100% shares of Byco Terminals Pakistan Limited (formerly Universal Terminal Limited) - with a terminal at Kemari, Karachi.

2010Capacity Enhancement of Byco Petroleum Pakistan Limited Refinery
ORC I refining capacity was enhanced to 35,000 bpd.

2010Rebranding Byco
An unparalleled and unique brand architecture exercise was performed by international brand consultants to position Byco over and above its competition. This exercise was aimed to strengthen the corporate image and enabling to compete locally and globally.

2010Single Point Mooring and Pipeline Project
Project for Single Point Mooring and Pipeline network was initiated after a ground breaking project ceremony.

After this project give full production Pakistan will able to produce 90% refine oil of its requirement and save lot of $$$$

Other projects in pipeline

• Indus Oil Refinery Ltd, 100,000 bbl/d (16,000 m3/d) (not yet operational)
• Khalifa Coastal Refinery, 300,000 bbl/d (48,000 m3/d) (not yet operational)
• Trans Asia Refinery, 100,000 bbl/d (16,000 m3/d) (not yet operational)

 

[AZADPAKISTAN2009]

Congrats to Pakistan and to the visionary man who started the project in 90`s
best Eid Present for Pakistan

 

[My-Analogous]

It save lot of money as average cost of refine oil is based on below (as per international distributer) + taxes will now in Pakistan pocket

74% - Cost of the crude oil
11% - Taxes
10% - Refining costs
5% - Distribution and marketing

 

[TR.1]

how much of oil can pakistan get by nationally

 

[Nishan_101]

• Pak-Arab Refinery Limited (MCR), 100,000 bbl/d (16,000 m3/d)
• National Refinery Limited (NRL), 64,000 bbl/d (10,200 m3/d)
• Attock Refinery Limited (ARL), 46,000 bbl/d (7,300 m3/d)
• Byco Petroleum Pakistan Limited (Byco), 155,000 bbl/d (24,800 m3/d) (120,000+ 35,000 old one)
• Pakistan Refinery Limited (PRL), 50,000 bbl/d (7,900 m3/d)
• Enar Petroleum Refining Facility (Enar), 3,000 bbl/d (480 m3/d)

Total production 418,000 bbl/d (66,880 m3/d) out of required quantity 460,000 bbl/d (73,600 m3/d)

Byco in Brief

Byco is Pakistan’s emerging energy companies engaged in the businesses of oil refining, petroleum marketing, chemicals manufacturing and petroleum logistics. Headquartered in Karachi, we are serving our mission to fulfill the energy demand within and beyond borders.
Companies under Byco umbrella are:

• Byco Oil Pakistan Limited (BOPL)
• Oil Refining & Chemical Manufacturing
• Byco Petroleum Pakistan Limited (BPPL)
• Oil Refining & Petroleum Marketing
• Byco Terminals Pakistan Limited (BTPL) formerly Universal Terminal Limited)
• Infrastructure & Logistics

We are engaged in manufacturing of a wide range of petroleum products with the objective to achieve sustainable productivity, profitability and high standards of care for environment, health and safety.

Byco's operational refinery has a capacity to refine 35,000 barrels a day of crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil. We are also expanding our refining complex by setting up another refinery with the capacity of 120,000 barrels per day which is near to completion.
We take pride in having the largest capacity crude oil storage tanks in the country. Our petroleum distribution network supports movement of petroleum products and provide greater economies of scale.

Our marketing network supports retail outlets in more than 80 cities all over Pakistan and is an emerging leader in oil marketing sector of our economy.

Our diverse and highly skilled workforce consists of approximately 600 dedicated employees shared among Byco companies.

Ownership Structure

Abraaj Capital Limited (ACL) 40%
Byco group Pakistan Ltd 60 %

Company Histroy

Byco Group was founded by the Founder Chairman, Mr. Parvez Abbasi (Late) in mid-90’s with the vision to pioneer the change in the energy sector of Pakistan. With his vision, the company Byco Petroleum Pakistan Limited was formed in January 1995 as public limited company.
Byco installed its first oil refinery with a 30,000 barrels a day at Mouza Kund, Hub Balochistan and started its commercial production from July 1, 2004 with various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil.
In 2008, the company decided to enter into the Petroleum Marketing Business and set up the first retail outlet, and since then the retail network has grown immensely.

After the first refinery implementation, the group decided to commence another project to implement a 120,000 barrels a day refinery under the new company Byco Oil Pakistan Limited in 2008.

The group also brought an aromatic plant to be implemented in near future.
In February 2008, realizing the immense potential that Byco companies possesses, Abraaj Capital Limited (ACL), a leading private equity firm of Middle East, North Africa and South Asia (MENASA) invested in private equity.

Historical Highlights

1995Incorporation of Byco Petroleum Pakistan Limited (BPPL)
Byco Petroleum Pakistan Limited was incorporated in Pakistan as a public limited company on January 09, 1995 and was granted a certificate of commencement of business on March 13, 1995. The shares are listed on Karachi, Lahore and Islamabad Stock Exchanges.

2001Relocation of BPPL Refinery
Commencement of construction of refinery (ORC I).

2004Commencement of commercial operations
The Company started its commercial production from July 1, 2004 refining crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil.

2006SAP Implementation
SAP enterprise resource planning, one of the leading ERP software is active with strong presence in the Organization since 2006. This has enhanced system efficiencies by providing real time information to the Management for decision making.

2007First Retail Outlet
Byco commenced the sale of petroleum products with the establishment of its first retail outlet in July 2007 near Sukkur.

2007Isomerization Unit
Byco Petroleum Pakistan Limited acquired first Isomerization Unit in the Country.

2008Revamp and Debottlenecking
BPPL Refinery Capacity was revamped and debottlenecking was done.

2008Joint venture with Abraaj Capital Limited
Abraaj Capital Limited (ACL), a leading private equity firm of Middle East, North Africa and South Asia (MENASA), joined hands with Byco group. Under the agreed arrangement, Abraaj acquired 40 % share in Byco group.

2008Relocation of Byco Oil Pakistan Limited (BOPL) Refinery
Commencement of construction of 120,000 bpd refinery.

2009Petroleum Marketing Business
Byco Petroleum Pakistan Limited entered into the Oil Marketing arena by formally relaunching its Petroleum Marketing Business formerly Oil Marketing Unit.

2009Completion of Storage Tanks
Byco Petroleum Pakistan Limited built the largest capacity Storage Tanks in the country.

2010Acquisition of BTPL (formerly UTL) by Byco Petroleum Pakistan Limited
Byco Petroleum acquired 100% shares of Byco Terminals Pakistan Limited (formerly Universal Terminal Limited) - with a terminal at Kemari, Karachi.

2010Capacity Enhancement of Byco Petroleum Pakistan Limited Refinery
ORC I refining capacity was enhanced to 35,000 bpd.

2010Rebranding Byco
An unparalleled and unique brand architecture exercise was performed by international brand consultants to position Byco over and above its competition. This exercise was aimed to strengthen the corporate image and enabling to compete locally and globally.

2010Single Point Mooring and Pipeline Project
Project for Single Point Mooring and Pipeline network was initiated after a ground breaking project ceremony.

After this project give full production Pakistan will able to produce 90% refine oil of its requirement and save lot of $$$$

Other projects in pipeline

• Indus Oil Refinery Ltd, 100,000 bbl/d (16,000 m3/d) (not yet operational)
• Khalifa Coastal Refinery, 300,000 bbl/d (48,000 m3/d) (not yet operational)
• Trans Asia Refinery, 100,000 bbl/d (16,000 m3/d) (not yet operational)

If wish to see an Oil Pipeline from IRAN into Pakistan and Refineries being build by Saudi and UAE investment in Pakistan to supply the refined product to Afghanistan(trough tankers), China(Through Pipeline or tankers) and may be to China(through pipeline).

 

[Nishan_101]

• Pak-Arab Refinery Limited (MCR), 100,000 bbl/d (16,000 m3/d)
• National Refinery Limited (NRL), 64,000 bbl/d (10,200 m3/d)
• Attock Refinery Limited (ARL), 46,000 bbl/d (7,300 m3/d)
• Byco Petroleum Pakistan Limited (Byco), 155,000 bbl/d (24,800 m3/d) (120,000+ 35,000 old one)
• Pakistan Refinery Limited (PRL), 50,000 bbl/d (7,900 m3/d)
• Enar Petroleum Refining Facility (Enar), 3,000 bbl/d (480 m3/d)

Total production 418,000 bbl/d (66,880 m3/d) out of required quantity 460,000 bbl/d (73,600 m3/d)

Byco in Brief

Byco is Pakistan’s emerging energy companies engaged in the businesses of oil refining, petroleum marketing, chemicals manufacturing and petroleum logistics. Headquartered in Karachi, we are serving our mission to fulfill the energy demand within and beyond borders.
Companies under Byco umbrella are:

• Byco Oil Pakistan Limited (BOPL)
• Oil Refining & Chemical Manufacturing
• Byco Petroleum Pakistan Limited (BPPL)
• Oil Refining & Petroleum Marketing
• Byco Terminals Pakistan Limited (BTPL) formerly Universal Terminal Limited)
• Infrastructure & Logistics

We are engaged in manufacturing of a wide range of petroleum products with the objective to achieve sustainable productivity, profitability and high standards of care for environment, health and safety.

Byco's operational refinery has a capacity to refine 35,000 barrels a day of crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil. We are also expanding our refining complex by setting up another refinery with the capacity of 120,000 barrels per day which is near to completion.
We take pride in having the largest capacity crude oil storage tanks in the country. Our petroleum distribution network supports movement of petroleum products and provide greater economies of scale.

Our marketing network supports retail outlets in more than 80 cities all over Pakistan and is an emerging leader in oil marketing sector of our economy.

Our diverse and highly skilled workforce consists of approximately 600 dedicated employees shared among Byco companies.

Ownership Structure

Abraaj Capital Limited (ACL) 40%
Byco group Pakistan Ltd 60 %

Company Histroy

Byco Group was founded by the Founder Chairman, Mr. Parvez Abbasi (Late) in mid-90’s with the vision to pioneer the change in the energy sector of Pakistan. With his vision, the company Byco Petroleum Pakistan Limited was formed in January 1995 as public limited company.
Byco installed its first oil refinery with a 30,000 barrels a day at Mouza Kund, Hub Balochistan and started its commercial production from July 1, 2004 with various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil.
In 2008, the company decided to enter into the Petroleum Marketing Business and set up the first retail outlet, and since then the retail network has grown immensely.

After the first refinery implementation, the group decided to commence another project to implement a 120,000 barrels a day refinery under the new company Byco Oil Pakistan Limited in 2008.

The group also brought an aromatic plant to be implemented in near future.
In February 2008, realizing the immense potential that Byco companies possesses, Abraaj Capital Limited (ACL), a leading private equity firm of Middle East, North Africa and South Asia (MENASA) invested in private equity.

Historical Highlights

1995Incorporation of Byco Petroleum Pakistan Limited (BPPL)
Byco Petroleum Pakistan Limited was incorporated in Pakistan as a public limited company on January 09, 1995 and was granted a certificate of commencement of business on March 13, 1995. The shares are listed on Karachi, Lahore and Islamabad Stock Exchanges.

2001Relocation of BPPL Refinery
Commencement of construction of refinery (ORC I).

2004Commencement of commercial operations
The Company started its commercial production from July 1, 2004 refining crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil.

2006SAP Implementation
SAP enterprise resource planning, one of the leading ERP software is active with strong presence in the Organization since 2006. This has enhanced system efficiencies by providing real time information to the Management for decision making.

2007First Retail Outlet
Byco commenced the sale of petroleum products with the establishment of its first retail outlet in July 2007 near Sukkur.

2007Isomerization Unit
Byco Petroleum Pakistan Limited acquired first Isomerization Unit in the Country.

2008Revamp and Debottlenecking
BPPL Refinery Capacity was revamped and debottlenecking was done.

2008Joint venture with Abraaj Capital Limited
Abraaj Capital Limited (ACL), a leading private equity firm of Middle East, North Africa and South Asia (MENASA), joined hands with Byco group. Under the agreed arrangement, Abraaj acquired 40 % share in Byco group.

2008Relocation of Byco Oil Pakistan Limited (BOPL) Refinery
Commencement of construction of 120,000 bpd refinery.

2009Petroleum Marketing Business
Byco Petroleum Pakistan Limited entered into the Oil Marketing arena by formally relaunching its Petroleum Marketing Business formerly Oil Marketing Unit.

2009Completion of Storage Tanks
Byco Petroleum Pakistan Limited built the largest capacity Storage Tanks in the country.

2010Acquisition of BTPL (formerly UTL) by Byco Petroleum Pakistan Limited
Byco Petroleum acquired 100% shares of Byco Terminals Pakistan Limited (formerly Universal Terminal Limited) - with a terminal at Kemari, Karachi.

2010Capacity Enhancement of Byco Petroleum Pakistan Limited Refinery
ORC I refining capacity was enhanced to 35,000 bpd.

2010Rebranding Byco
An unparalleled and unique brand architecture exercise was performed by international brand consultants to position Byco over and above its competition. This exercise was aimed to strengthen the corporate image and enabling to compete locally and globally.

2010Single Point Mooring and Pipeline Project
Project for Single Point Mooring and Pipeline network was initiated after a ground breaking project ceremony.

After this project give full production Pakistan will able to produce 90% refine oil of its requirement and save lot of $$$$

Other projects in pipeline

• Indus Oil Refinery Ltd, 100,000 bbl/d (16,000 m3/d) (not yet operational)
• Khalifa Coastal Refinery, 300,000 bbl/d (48,000 m3/d) (not yet operational)
• Trans Asia Refinery, 100,000 bbl/d (16,000 m3/d) (not yet operational)

Total production 418,000 bbl/d (66,880 m3/d) out of required quantity 460,000 bbl/d (73,600 m3/d)

Other projects in pipeline

• Indus Oil Refinery Ltd, 100,000 bbl/d (16,000 m3/d) (not yet operational)
• Khalifa Coastal Refinery, 300,000 bbl/d (48,000 m3/d) (not yet operational)
• Trans Asia Refinery, 100,000 bbl/d (16,000 m3/d) (not yet operational)

Means that in near future there will be more oil than required. But the need will be multiplied as CNG from the system will going to be vanished very soon, so oil will be required to fulfill the need.

I am hopeful that we will make a deal with IRAN over gas along with an OIL pipeline. By the way can you tell me the location of these new refineries???

Other projects in pipeline

• Indus Oil Refinery Ltd, 100,000 bbl/d (16,000 m3/d) (not yet operational)
• Khalifa Coastal Refinery, 300,000 bbl/d (48,000 m3/d) (not yet operational)
• Trans Asia Refinery, 100,000 bbl/d (16,000 m3/d) (not yet operational)

 

[My-Analogous]

Means that in near future there will be more oil than required. But the need will be multiplied as CNG from the system will going to be vanished very soon, so oil will be required to fulfill the need.

I am hopeful that we will make a deal with IRAN over gas along with an OIL pipeline. By the way can you tell me the location of these new refineries???

As economy progress we need more oil + if we export refine oil to Afghanistan it will be ++ situation for Pakistan.

 

[niaz]

Bosicor was built around equipment from a written off refinery in USA. It was initially a 30 K barrels per day refinery; don’t think it ever ran at more than 18K (18,000) barrels per day.

The following from InfoGrokenergy. Bosicor Pakistan Limited: Company Information, Data & Profile

Quote

Bosicor Pakistan Limited (Bosicor) is a downstream energy company. It is engaged in refining and production of petroleum products. The company carries its refinery operation through its refinery located at Mouza Kund Plant (MKP1), located in Mouza Kund, Gadani near Hub Balouchistan. It has its operations in Karachi, Pakistan. The company is headquartered in Karachi, Pakistan.The company reported revenues of (Pakistan Rupee) PKR 35,806.12 million during the fiscal year ended June 2008, an increase of 85.25% over 2007. The operating profit of the company was PKR 1,761.80 million during the fiscal year 2008, whereas the company reported an operating loss of PKR 268.63 million during 2007. The net profit of the company was PKR 15.12 million during the fiscal year 2008, whereas the company reported a net loss of PKR 681.27 million during 2007

Unquote

Bosicor Pakistan Ltd - Analysis of Financial Statements Financial Year 2004-1Half Financial Year 2011 | corporate-news | highlights

According to another report link above we get:

Quote:

Liquidity:

The company s liquidity position deteriorated due to the falling sales and the worsening circular debt issue. The current ratio stood at 0. 52. This was similar to the last year’s ratio. On the current assets side, trade deposits and mark-up accrued went up by 122% and 477% respectively. However on the current liability side, this was reflect by the 100% decline in short-term borrowing and 14. 6% rise in trade and other payables. This move from short-term to long-term borrowing has very much helped the company s liquidity position as it is saved from constant refinancing. The loans from sponsors and associates increased by a nearly similar amount.

The quick ratio declined to 0. 30 from 0. 33 last year. This was due to the 30. 5% increase in stock in trade. This represented nearly 41. 5% of the total current assets.

Asset management

Day Sales Outstanding came went up to 138 days compared to 125 days in the same period last year. This was due to the 16% decline in sales. Inventory turnover also went up going from 90 days to 131 days. Thus the operating cycle came to 269 days compared to 215 days in the previous. These figures show some really poor performance in terms of asset management. The company has been keeping very high stockpiles compared to the rest of the industry. Such a high inventory could push up storage costs for the company.

Sales to equity ratio went up to from -2. 00 from -2. 60 in the first half of FY10. This was due to the 16% decline in sales. The total asset turnover fell down to 0. 52 in the first half of FY11, compared to 0. 65 during the same period last year. This was way below the industry s average of 0. 92.

Debt management

The debt to equity ratio increased to -4. 41 compared to the -4. 52 in the FY10. This was due to the fact that the negative equity went up by 10. 1% while the total liabilities went up by just 8%. Long-term debt to equity ratio went up to -1. 07 compared to -1. 24 in FY10. This was due to the 3. 7% decline in long-term assets. Debt to asset ratio went up from 1. 13 in FY10 to 1. 15 in the first half of FY11. This shows that the company has been piling up debt more than it has earned from it assets. This shows a very dangerous solvency position for the company. The management should immediately try to increase its assets and sell off assets, which are not in use. Times to interest ratio fell down to 0. 28 compared to 0. 54 during the FY10. This can prove to be harmful for the company s credit rating in the market. The company has to ensure its payments to lenders if it wants to improve its financial position through borrowing in the future.

Conclusion:

Bosicor/Byco is a flawed investment concept. The proof is that Bosicor has been constantly losing money and its debt exceeds the assets (It is bankrupt in accounting terms). It cannot compete with refineries already operating in Pakistan and/or operating or coming up in the Arabian Gulf. Therefore unless they get subsidy from the GOP, don’t see how the expanded refinery can be economically viable.

But the main investors will not lose; they will over invoice/under invoice and take their investment out even before the refinery starts. Main losers would be the private investor buying the stock in the open market. Remember Bosicor share price shot up to Rs. 35 in 2004 but plunged to Rs. 5 a couple of years later.

Gov’t of Pakistan will lose also. Pakistan has the choice to either import crude or import products; thus would need to spend foreign exchange either way. Imported products are cheaper than products produced by the refineries lacking upgrading facilities. Besides refineries owned by the oil producing countries can always afford to sell products at a lower price because real cost of crude coming out of the ground in OPEC countries in only about $10/barrel against $100/bbl. international crude price.

Parco is the sole refinery in Pakistan with cracking. Both NRL & PRL were established in 1960’s when refinery economics was different as Arabian/Persian Gulf oil producers did not have too many export refineries therefore it was viable to build simple hydro skimming refineries. Investment in NRL & PRL has been written off ages ago thus operating cost is low. Attock oil refinery is an exception because it based upcountry and runs on indigenous crude produced within a short distance from the refinery.
Other relevant links are:

BYCO PETROLEUM PAKISTAN LTD (BYCO:Karachi Stock Exchange): Financial Statements - Businessweek
Byco Petroleum Pakistan Limited | Business Recorder

The above does not mean that one should not build new refineries. New refinery must be state of the art such as Reliance Industries of India. RIL import very heavy low API crude which is relatively cheap and cracks it to high heaven. Fuel Oil production is “Nil”. However such refineries are expensive. Reliance built first phase of 660,000 barrels per day for $6-billion completed in 1999. Second phase of additional 580,000 barrels per day completed in 2008 cost $16-billion.

 

[Pakistanisage]

Refineries are one of the biggest polluters so they should be built in areas that are sparsely populated.

 

[AZADPAKISTAN2009]

No worries wind will carry the stuff over to neighbours they are used to it

 

[My-Analogous]

how much of oil can pakistan get by nationally

around 60,000 bbl/d

 

[My-Analogous]

Its only a start and we have to make few more and for India they required such big refinery and we don't required such huge refinery and it will be waste of resources but after 20 or 30 years we may required

 

[My-Analogous]

Guys congrats me its Indian toll free topic till date and hope for the best