Pakistan State Oil (PSO), the country’s largest oil marketing company, dismissed media reports that claimed it had decided to sell its 30% stake in Pakistan Refinery Limited (PRL) to United Energy Group (UEG), a Chinese energy firm.
“PSO has made no decision to divest its equity in PRL. The reported news is incorrect and misleading, thus refuted by PSO,” the state-run oil marketing company stated.
PSO added that it remained committed to its strategic investments and partnerships in the energy sector, and any decision regarding shareholding in subsidiaries or affiliates would follow a transparent process as per state law.
Earlier, Express Tribune had reported that PSO faced a liquidity crisis due to the accumulation of receivables and that it had opted to divest its 30% stake in PRL, its subsidiary, to overcome the situation.
They also reported that PSO had agreed to sell its over 30% stake in PRL to UEG for an investment of $1.5 billion to double the refining capacity and produce Euro 5 compliant fuel.
PSO is a major shareholder of PRL with a 63.6% stake. PRL is one of the four refineries operating in Pakistan and has a refining capacity of around 50,000 barrels per day.