INDUSTRY

 

Nov 11 - 17 , 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF

 

ZAMZAMA OIL PIPELINE PROJECT GOES TO PARCO

Pak-Arab Refinery Company Limited (Parco) will undertake Rs300 million pipeline to transport condensate from Zamzama gas field to Parco's pumping station at Bubak.

 

According to Parco sources, this 30-km-long pipeline is called Zamzama joint venture, comprising BHP Petroleum, LASMO, Premier Exploration and government holdings.

The Zamzama Joint Venture had approached Parco due to its experience of owning and operating a 1300 km cross country pipeline network. This condensate will be further transported to Parco's mid- country refinery for refining purposes.

Although this project is small keeping in view the industry norms and Parco's previously designed and implemented projects, it will strengthen the indigenous oil industry as well as serve as a step towards self-sufficiency. Sources said that this pipeline will be a significant infrastructure development project for Parco.

Parco will design, construct, install and commission all facilities required for the condensate pipeline transfer system including laying of a 30-km pipeline, condensate storage tanks and metering system. The six inch diameter pipeline will have an ultimate capacity of carrying 3,000 barrels per day.

The Zamzama pipeline project is expected to be completed and commissioned before the middle of next year.

Parco will also operate and maintain the condensate pipeline under an agreement with Zamzama Joint Venture.

OGDCL GRANTED 2 EXPLORATION LICENCES

The government granted two petroleum exploration licences to Oil and Gas Development Company Limited (OGDCL).

Abdullah Yusuf, secretary petroleum; G.A. Sabri, director general, Petroleum Concessions; and Maj Gen Parvez Akmal, managing director, OGDCL, signed the agreements on behalf of President of Pakistan, Petroleum Concessions and OGDCL, respectively.

Two separate concession agreements were executed between the President of Pakistan and OGDCL for grant of petroleum rights over Block No 3170-1 (Al-Rehman) covering an area of 2063.92 square kilometres in South Waziristan Agency, D.I. Khan district, NWFP, and Musakhel Bazar and Zhob district, Balochistan, and Block No 3372-14 (Fatehjang) covering an area of 2136.46 sq km in Islamabad, Rawalpindi and Attock districts of Punjab province.

PHUTTI ARRIVALS UP BY 2.33PC

As phutti (seed cotton) arrival in Punjab has picked up during last fortnight (Oct 15-31), the over all raw cotton production in the country also increased by 2.33 per cent over the corresponding period last year.

The arrival figures of phutti released by the Pakistan Cotton Ginners Association (PCGA) show that up to November 1, 2002, 3.352m bales have reached the ginneries as against 3.275m in the same period last year.

In Punjab, higher arrival of phutti from the field into the ginneries improved the production by 7.26 per cent over the last year's production in the same period. In total 2.372m are reported to have been processed by the ginneries as against 2.212m bales in the corresponding period last year.

SUGAR INDUSTRY RECOVERING

The performance of the sugar industry which remained bleak during the last couple of years, has picked up now and is showing signs of recovery.

According to a study conducted by LCCI, sugar production is likely to exceed over 3m tons this year. The production in the Punjab province will rise by 40 per cent due to increase in the area under crop, yield and sucrose recovery rate, owing to better availability of water this time.

With the total estimated production of 3.2m tons, after local consumption of 3.1m tons, about 100,000 tons will be left surplus, bringing the total surplus sugar in the country to around 500,000 tons. The study suggested that Pakistan should be a regular sugar exporting country that would offload its surplus stock and stabilize the prices of this commodity in the domestic market.

WORLD BANK'S PRIORITIES

The World Bank would accord top priority, under the new political setup in Pakistan, to the development of mining and natural resources sector through private investment as part of its fresh country assistance strategy (CAS).

Sources in the economic affairs division told that the sector has been identified as a major growth area because of its potential importance in improving macroeconomic stability through external and fiscal accounts and broadening access to growth and employment opportunities both geographically and socially.

3 STATES SUMMIT IN A MONTH: GAS PIPELINE

Managing director, Sui Southern Gas Company Limited (SSGC), Munnawar Baseer Ahmed, said a summit meeting between presidents of Pakistan, Turkmenistan and Afghanistan was expected to be held in a month to discuss the Pakistan-Turkmenistan gas pipeline project.

Addressing a press conference at the SSGC head office, he said an inter-ministerial meeting was held in this regard to review the progress of the project.

PS DEFERS CAPACITY EXPANSION PROGRAMME

Pakistan Steel is deferring the production capacity expansion programme indefinitely and is instead taking up a short term product diversification plan , focusing mainly on the value-added products to increase its share in the domestic steel market.

"Expansion in production capacity remains a long-term programme," chief executive and chairman, Pakistan Steel, Lt Col (retd) Mohammad Afzal Khan, replied when asked if the capacity expansion programme is being given up.