Abstract:
Country’s gross crude oil production is nearing 70,000 barrel per day which includes OGDCL’s current share around 45,000 barrels per day. This volume on daily basis is mostly being transported by roads through oil tankers from different fields to the refineries. On the other hand, about 850 Kilometers long pipelines from Karachi to Multan, 365 Kilometers white line in central region from Mehmud Kot to Sheikhupura and in up-country more than 100 Kilometers plus oil pipelines from Khaur to Morgah – Rawalpinid are also being used for shifting imported and local crude oil to the refineries. The total oil transportation expenses of oil producers are over Rupees one billion or US $ 16 Million during 2005-06. Considerable number of tankers are required for shifting of crude oil to the refineries. The conditions of the roads, such as Karachi to Hyderabad, have worsened due to this heavy load and the frequency of transportation. Traffic congestion, fatal road accidents, environmental pollution and shortage of parking space in industrial areas are the other burning issues related to oil transportation. We would like to take this opportunity to present some thought provoking alternate proposal regarding launching and Oil Transport Company for crude oil transportation through pipelines to the different refineries. Being a capital intensive project, the investment both in local and foreign currency can be syndicated through a commercial consortium of major E & P and refining companies. Oil Companies and refining sector would find this opportunity attractive both from the investment and operational perspectives. In the initial stage it will be advantageous to start a venture with some equity allocation and focus on developing limited pipelines in the southern region of the county. The additional benefits would be savings in foreign exchange by reduced diesel import bill for tankers, lower number of road accidents, clean environment, lower cost and improvement in infrastructure that will make energy sector more conducive to foreign investors.
Page(s):
191-194
DOI:
DOI not available
Published:
Journal: Proceedings SPE-PAPG Annual Technical Conference, Volume: 0, Issue: 0, Year: 2007