ISLAMABAD: The government is establishing a Project Management Unit (PMU) to streamline the upgrading process of the nation’s aging refineries in accordance with the oil refining policy, as reported by Private Media.
A circular stated that, following a decision by the Cabinet Committee on Energy (CCOE), the Ministry of Energy (Petroleum Division) (MOE) is initiating the formation of a PMU to facilitate the execution of upgrade projects.
The PMU’s role will also involve aiding the committee in addressing challenges and discrepancies outlined in the Pakistan Oil Refining Policy for the enhancement of existing Brownfield Refineries, 2023 (the policy).
Heading the PMU will be the Director-General (Oil), with representatives from refineries, the Oil & Gas Regulatory Authority (OGRA), and a jointly engaged consultant by the refineries.
Industry sources revealed opposition from local refineries during a recent meeting where the petroleum division proposed the establishment of the PMU. Refinery officials argued that this decision was redundant given OGRA’s ongoing consultancy in the matter, suggesting it would only lead to duplication and further delays in refinery upgrade agreements. A final decision on the matter, reflecting the sector’s viewpoint branding the “new consultant” as unnecessary, will be conveyed to the Ministry in the coming days.
As per the terms of reference, the consultant may offer expertise in finance, legal, technical (engineering), and project management as needed by the PMU. Their scope includes addressing concerns raised by refineries during upgrade agreement finalizations, recommending solutions to the PMU/committee, conducting thorough due diligence (legal/technical/financial) on refinery requests for policy clarity, and providing recommendations backed by legal, technical, and financial implications, along with relevant regional benchmarks. Additionally, they will assist in monitoring project progress through status reports and reviewing project plans using relevant tools, including RAID (Risks/Assumptions/Issues/Dependencies logs).
(Islamabad51_Newsdesk)
