KARACHI, Sept 1: Indus Refinery Limited (IRL) on Friday signed a memorandum of understanding (MoU) with Fauji Oil Terminal Company (Fotco) for the development and construction of an additional oil jetty at Port Qasim.

The ground-breaking of the proposed oil jetty will be held by the end of current calendar year.

The new oil jetty with state-of-the-art operating equipment and technology is expected to be completed by the third quarter of 2008.

Fotco has exclusive rights to build and develop oil jetties at Port Qasim in Karachi, according to a press release issued here.

Commenting on the signing of the MoU, IRL chairman and CEO M. Sohail Shamsi said “It is a landmark occasion for IRL, a joint venture between Middle East based investors and local sponsors, and a significant development in the oil and gas sector of Pakistan”.

Fotco General Manager Commodore Pervaiz Ahmed Khan said the new jetty would handle all of IRL’s petroleum, oil and lubricants products enabling the refinery to have convenient access for the import and export of POL products.

The proposed jetty will provide logistics support to IRL thus facilitating the company to reduce operational costs and increase production.

IRL, a joint venture between Middle East based investors and local sponsors, has taken the initiative to relocate, reconstruct and operate a state-of-the-art refinery to become the sixth petroleum refinery in the country.

—APP