PSO plans to double its authorised capital to Rs10 billion

KARACHI: The Pakistan State Oil (PSO) plans big, as the state-owned oil company has proposed to double its authorised capital to Rs10 billion in a move to explore investment plans for vertical integration and diversification of business portfolio to add sustainability.

PSO is also exploring further avenues for increasing its stakes in the liquefied natural gas (LNG) value chain. “Yes, there are expansion plans and several projects are under consideration. However, the same cannot be disclosed at this point of time,” a PSO spokesperson said.

An analyst said the oil companies need to diversify, as the black oil industry was dying, while the drive for cleaner energy is creating a niche for the downstream segment to compete in the electric chargers, batteries, biogas, carbon capture technology and renewable energy.

The black oil industry is on the verge of decline, owing to a shift in the national energy mix. With an increase in gas-fired power plants and the government’s focus on adding indigenous renewable energy sources, the volume is expected to decline in the coming years.

Conducive policies are encouraging investors to reallocate their resources in the fields of electric vehicles and renewable energy.

“The board is determined to ensure that the group is geared to adapt to changing business dynamics and upcoming challenges. Shifting to renewable and indigenous energy resources will be an area of focus, while securing the interests of shareholders will continue to be the prime objective,” PSO chairman Zafar Usmani noted in the company’s latest annual report for 2021.

The Pakistan State Oil Company Limited (PSOCL) is the largest oil marketing company of Pakistan with a widespread network, comprising 3,500+ retail outlets, nine installations, 23 depots, refueling facilities at 10 airports, with two state-of-the-art lubricant manufacturing facilities and liquefied petroleum gas (LPG) storage and bottling facilities.

The company’s business activities involve sourcing (imports and local), storage and marketing of petroleum products along with the import of Re-gasified Liquefied Natural Gas.