According to sources privy to details, apart from annual maintenance, PRL was not able to carry out production as it was facing problems in opening of letters of credit for the import of crude oil, a must for smooth operations.
Sources said that PRL went for shutdown despite the instructions of the Oil and Gas Regulatory Authority (OGRA) that the refinery should continue with its operations in the month of December.
OGRA wrote a letter to the PRL at the start of the month, after review meeting of supplies of oil in the country.
The PRL representative in the meeting told that the refinery would be shut down because of the issue related to the opening of letters of credit for the import of crude.
Despite PRL’s reluctance, OGRA had directed the refinery to adhere to its directives by not shutting down till February 2023 as it expected shutting down would create oil supply issues in the country.
In response to the PRL letter for shut down, OGRA said that the request of PRL for temporary shutdown has been examined by the OGRA’s Oil Supply Chain Department in the light of current demand-supply trend of POL products.
Keeping in view the high demand of diesel in winter and significant contribution of PRL therein, it said that the PRL was requested to reassess its technical and HSE issue and reschedule the proposed shutdown to the first half of February 2023.
PRL, on the other hand justified the shutdown on the ground that it was already planned. Sources said that apart from carrying out technical annual maintenance work, PRL managed to secure the opening of a letter of credit for crude oil.
Oil marketing companies and refineries have been struggling to open letters of credit due to the extreme scarcity of dollars in the country, despite government policy to give preference to the oil sector for imports to ensure energy security.
PRL received 70,000 tons crude oil and the next cargo would come on January 13, 2023, the sources said.
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