PSO to Maximize Product Upliftment from Local Sources/ Refineries

Date: May 21, 2012

PSO to Maximize Product Upliftment from Local Sources/ Refineries
 
As part of the new vision, PSO has embarked on a mission to strengthen the petroleum products' supply line by maximizing fuel upliftment from local refineries aand local fuel oil blenders. In the pursuit of this objective, the company has recently entered into sale purchase agreement and renegotiated its contract with two refineries namely BYCO Petroleum and PARCO and one local fuel oil blender ie Bakri Trading Company.

This initiative will benefit the national economy by reducing the nation's dependence on imported oil products, reduce foreign exchange expenditure, encourage foreign investment in the domestic energy sector and maximize local refineries' through-put. In the recent agreements signed by the company, the payment modalities will involve PSO opening Letters of Credit (LC's) for its suppliers. However, this arrangement can only be sustained if back to back LC's from the power entities are ensured to PSO so that the payment cycle in the energy sector is streamlined and accumulation of further debt is minimized.

PSO takes pride in playing a proactive part in the energy supply value chain and await the remaining stakeholders to come forward to ensure success of this endeavor in the best interest of the nation.