Four Oil Refineries in Pakistan Sign Upgrade Agreements Worth $6 Billion

Four of Pakistan’s five domestic oil refineries signed upgrade agreements with the government on Thursday, setting the stage for significant modernization projects estimated at USD 6 billion over five years.

These agreements, initiated under the direction of Petroleum Minister Ali Pervaiz Malik, are designed to modernize Pakistan’s refining sector and strengthen the country's long-term energy security. The upgrades fall under the approved Brownfield Petroleum Refining Policy 2026.

The government has appointed Inter State Gas Systems (ISGS) to supervise and implement the agreements, replacing the Oil and Gas Regulatory Authority (OGRA) in this role. The formal signing took place at the office of Inter State Gas Company (ISGC), a subsidiary of the Petroleum Division.

The management teams from Attock Refinery, National Refinery, Pakistan Refinery, and Cnergyico Petroleum participated in the signing. According to reliable sources, Pak Arab Refinery (Parco), a joint venture between Pakistan and Abu Dhabi, did not take part.

Earlier, all five refineries, including PARCO, expressed their intention in August 2026 to sign the agreements by early September to facilitate the expected investment. Subsequently, the Federal Cabinet called for further amendments and set a deadline of October 1, 2026, requiring the refineries to finalize agreements directly with the Ministry of Energy (Petroleum Division).

Under the new policy, which replaces all previous refining policies, Pakistan’s existing refineries are required to enhance their product quality, quantity, and product mix through these planned upgrades.