Saudi Arabia has agreed to invest in the new oil refinery that is to be established at the Chinese-funded deep-water port, Gwadar, as informed by the South Asian country’s petroleum minister.
Ghulam Sarwar Khan—the Petroleum Minister told the reporters that Pakistan state oil—an entity owned by the government of Pakistan would be partnering with the Saudi state oil grant—Aramco on the project.
The details of the project including its capacity and cost are to be worked out later, once the final Memorandum of understanding (MoU) is finalized, which was already approved by the cabinet of Pakistan on Thursday.
Gwadar is situated in the southwestern province of Balochistan. It is the most significant part of China’s more than $60 billion in the Belt and Road Initiative (BRI) projects in Pakistan.
In the month of September, Pakistan gave an invitation to the Kingdom of Saudi Arabia to come and invest in the projects linked to BRI’s China Pakistan Economic Corridor (CPEC), although the government has clearly stated that China was still the only actual partner of the project.
Sarwar Khan informed that a visiting delegation from Saudi Arabia paid a visit to Gwadar on Tuesday.
He further added that the visiting delegation showed immediate interestint investing in the refinery project.
He said that they sat down and conducted initial discussions and it was principally decided by both parties that it would be a government-to-government agreement.
The offer came following the visit of the current prime minister—Imran Khan to Riyadh. It was his first foreign visit since taking charge.