|Date: November 27, 2012|
|PSO on the road to integration: |
Cutting the fat by eliminating middle-men
Mr. Naeem Yahya Mir, CEO & MD of Pakistan State Oil (PSO), the nation’s largest Energy Company held a press conference at a local hotel to highlight his future expansion strategy for the oil giant.
Speaking at the occasion, Mr. Naeem stated that as part of his dream vision for PSO, he aimed to make the national giant an integrated energy company by incorporating all aspects of the product supply chain including exploration, refining, distribution and shipping. Through this, the company will minimize dependence on foreign supply chains and follow the model of successful companies which have integrated multiple supply chain aspects within themselves. Mr. Naeem also said that PSO can only achieve this dream by connecting with upstream partners, introducing innovative ideas to beat the competition downstream and establishing control of its own product supply chain. Furthermore, the CEO&MD outlined his goals of establishing PSO as the leading company in Pakistan within a period of two years, a regional player in four years and a member of the ranks of global oil conglomerates such as PETROCHINA, PETRONAS-Malaysia, PETROBRAS -Brazil etc within six years.
Moving forward, the MD-PSO outlined some of the new initiatives PSO has undertaken under his leadership including signing a Contract of Affreightment (COA) with Pakistan National Shipping Corporation (PNSC) for importing furnace oil from foreign ports, development of a new oil tanker mooring point and storage facility at Hub which will increase national storage capacity and reduce congestion at the existing jetties, establishment of over 100 LPG Autogas stations in the upcoming year and agreements with PARCO, BYCO and Bakri Trading for the acquisition of POL products. Other major projects listed at the conference included establishment of a modern EURO IV capacity refinery in Khyber Pakhtunwa, acquisition of a refinery in the south of the country and setting up a Base II lubricant refinery. He also plans to establish a regional JV Aviation Company in the Middle East and is looking to expand into the coal business in partnership with other companies.
Furthermore, the MD stated that he had embarked on a program of cutting out middle-men and cost rationalization at PSO. He stated that by eliminating the addition of detergent additives in Mogas and Diesel, the Company would save approximately Rs. 635 Million/year, savings of Rs. 450 Million/year were also expected through the stoppage of war premium insurance payments on POL product imports. Additionally by uplifting products from local sources/ refineries, foreign exchange of approximately $200 Million would be saved annually and a further Rs. 500 Million will be saved by engaging the national flag carrier PNSC for transport of furnace oil.
Mr. Naeem further spoke on PSO’s enhanced customer focus activities which consisted of establishing VIP lanes for motorcyclists at retail outlets and development of a flagship retail outlet designed for premium customers which would offer only HOBC and branded consumer items at its store shop. He also commented upon some of the Company’s recent CSR initiatives including the establishment of ten (two in each province) Corporate Social Pumps in low income areas in partnership with the local populace and development of two streets in every province with state-of-the-art infrastructure and facilities in developing areas under its Street Support Program.
Committed to providing quality products and customer services to the citizens of Pakistan, PSO, the national energy giant remains committed to serving the fuel needs of the nation.