Byco purchase process helps Oil and Gas Development Company Limited avoid circular debt
Karachi, July 03, 2014 (PPI-OT): Byco Petroleum Pakistan Limited (BPPL) has effectively screened cash flows of the Oil and Gas Development Company Limited (OGDCL) from current or future circular debt since June 2013, as BPPL is the only oil refinery in the country to commence purchasing crude oil from OGDCLagainst letters of credit.
By following the purchase process, Byco is ensuring that OGDCL, the country’s flagship organisation of the energy and power sector, does not face possibilities of any irrecoverable debts and deficits. The process is particularly followed by Byco to ensure that the country’s oil and gas giant, OGDCL, stays free of any potential financial woes.
This also reiterates the fact that any purchase Byco made from OGDCL was not free of cost and was done under allocation by the Ministry of Petroleum and Natural Resources. The ministry allocates supplies and materials such as indigenous crude oil and condensate products to oil refineries in the country.
Being part of the oil-refining sector, Byco also receives these supplies from the Ministry, itself. Thus, the Company does not purchase or attain any supplies or material free of cost; it is allocated the supplies, as are other oil refining companies in the country.
The Oil and Gas Development Company (OGDCL) is the leading national oil and gas company of Pakistan. Byco has been uplifting its crude oil and condensate products from the OGDCL, only, and has the lowest payable days in comparison to other refineries.
For more information, contact:
Byco Petroleum Pakistan Limited
The Harbour Front, 9th Floor, Dolmen City, HC-3,
Block 4, Marine Drive, Clifton,
UAN: +92 21 111 222 081
Fax: +92 21 111 888 081
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