Pakistan Refinery Limited
A Karachi-based Pakistani oil refiner producing fuels and other petroleum products for the domestic market.
Last updated August 26, 2026
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Overview
Pakistan Refinery Limited (PRL) is a Pakistani petroleum-refining company headquartered in Karachi and operating facilities at Korangi Creek and Keamari. Its principal business is the processing of imported and domestically sourced crude oil into refined petroleum products used in transport, aviation, power generation, industry, and household energy applications. The company is listed on the Pakistan Stock Exchange and is one of the established refining businesses serving Pakistan's domestic downstream oil market. PRL originated in the industrial and energy-development programs that followed Pakistan's independence. In the late 1950s, the Soviet Union offered assistance for an oil refinery, but its proposal was tied to the use of crude imported from the Soviet Union. The Government of Pakistan instead approached private-sector oil companies already operating in the country and promoted a joint venture to build a refinery in Karachi. In September 1959, the government reached an agreement with a consortium comprising Burmah Oil Company, California Texas Oil Corporation, The Shell Petroleum Company, and Standard Vacuum Oil Company. Pakistan Refinery Limited was incorporated as a public limited company in May 1960. The construction contract was awarded to the M. W. Kellogg Group of Companies, with the original project cost reported at approximately US$35 million. The consortium subscribed 60 percent of the refining company's shares, while the remaining 40 percent was subscribed by private investors through an initial public offering on the Karachi Stock Exchange. The refinery began operations in 1964 and was inaugurated by President Ayub Khan. Its initial design capacity was approximately one million tonnes of crude oil per year, later expanded to about 2.1 million tonnes per year, equivalent to approximately 50,000 barrels per day. PRL uses a hydro-skimming configuration. Its process chain includes crude desalting and distillation, hydrodesulfurization, catalytic reforming or platforming, isomerization, liquefied petroleum gas recovery, utilities for steam and power generation, effluent treatment, and water-softening systems. The company's product slate includes motor gasoline, high-speed diesel, furnace oil, aviation turbine fuel, kerosene, naphtha, and liquefied petroleum gas. A significant technical development occurred when PRL awarded Honeywell UOP a contract in 2014 for a Penex isomerization unit. Commissioned in 2016, the unit was intended to convert naphtha feedstock into isomerate, supporting the production of higher-octane motor gasoline. The project was reported to have doubled PRL's high-quality gasoline output to approximately 24,000 metric tonnes per month. PRL's ownership history has included participation by major oil-sector companies and Pakistan State Oil. In June 2015, Pakistan State Oil acquired Shell Pakistan's stake in the refinery. In October 2023, United Energy Group and Pakistan State Oil announced a proposed investment arrangement under which United Energy Group would provide US$1.5 billion for a refinery-related project and Pakistan State Oil would sell more than 30 percent of its PRL shareholding in exchange for the capital injection. The available reference material does not establish that the proposed transaction was completed. PRL also signed a long-term crude-oil supply agreement with a Russian counterpart in October 2023. Operationally, crude imported by tankers owned or chartered by Pakistan National Shipping Corporation is received at PRL's Keamari berthing and storage facilities and then transferred to the main processing site at Korangi Creek. The company's performance and strategic importance are closely linked to Pakistan's fuel demand, crude-import requirements, refinery configuration, product specifications, logistics infrastructure, and the country's broader effort to maintain domestic refining capacity.
History
Pakistan Refinery Limited emerged from Pakistan's early post-independence effort to establish domestic crude-processing capacity. During the late 1950s, the Soviet Union offered to help Pakistan build an oil refinery, subject to a condition that the facility process only Soviet-imported crude. The Pakistani government pursued an alternative involving private oil companies already active in the country, seeking a refinery that could support a broader crude-supply base and strengthen domestic petroleum infrastructure. In September 1959, the government concluded an agreement with a four-company consortium consisting of Burmah Oil Company, California Texas Oil Corporation, The Shell Petroleum Company, and Standard Vacuum Oil Company. Pakistan Refinery Limited was incorporated as a public limited company in May 1960. Engineering and construction work was awarded to the M. W. Kellogg Group of Companies. The refinery was reported to have cost approximately US$35 million. The consortium subscribed 60 percent of the company's shares, with the remaining 40 percent offered to private investors through an initial public offering on the Karachi Stock Exchange. Construction produced a refinery at Korangi in Karachi, and operations began in 1964. The facility was inaugurated by President Ayub Khan. It was initially designed to process approximately one million tonnes of crude oil annually. Over time, its nominal capacity expanded to approximately 2.1 million tonnes per year, or about 50,000 barrels per day. PRL's physical footprint developed around two Karachi locations: the main processing complex at Korangi Creek and crude berthing and storage infrastructure at Keamari. Tankers deliver imported crude to Keamari, from where it is moved to the processing facility. The refinery's hydro-skimming configuration includes crude desalting, crude distillation, hydrodesulfurization, platforming, isomerization, LPG recovery, steam and power generation, effluent-water treatment, and water-softening facilities. This configuration enables PRL to manufacture a range of fuels and refinery products, including motor gasoline, high-speed diesel, furnace oil, aviation fuel, kerosene, naphtha, and LPG. A major modernization step came in 2014, when PRL awarded Honeywell's UOP a contract for a Penex isomerization unit. The unit was commissioned in 2016 and was designed to convert naphtha feedstock into isomerate, improving the refinery's ability to produce higher-octane motor gasoline. The project was reported to have doubled the company's high-quality gasoline output to 24,000 metric tonnes per month. The company's ownership structure also changed over time. In June 2015, Pakistan State Oil acquired Shell Pakistan's stake in PRL. In October 2023, United Energy Group and Pakistan State Oil announced a proposed investment arrangement associated with a US$1.5 billion refinery project. Under the proposal, PSO would sell more than 30 percent of its PRL shareholding to United Energy Group in exchange for the capital injection. The reference material does not confirm that the transaction was completed, so it should be treated as a proposal rather than a completed acquisition. During the same month, PRL signed a long-term crude-supply agreement with a Russian counterpart. Today, PRL's documented role is that of a listed Pakistani refining company supplying petroleum products to the domestic market. Its business depends on crude procurement, marine logistics, refinery utilization, product demand, fuel specifications, and the wider regulatory and investment environment affecting Pakistan's downstream energy sector.
- 2023
Proposed United Energy Group investment
[1]United Energy Group agreed to a proposed US$1.5 billion investment arrangement involving a possible sale of more than 30 percent of PRL by Pakistan State Oil.
- 2023
Russian crude-supply agreement
[1]PRL signed a long-term crude-oil supply agreement with a Russian counterpart.
- 2016
Isomerization unit commissioned
[1]The Penex unit entered service and was reported to have doubled PRL's high-quality gasoline output to approximately 24,000 metric tonnes per month.
- 2015
Pakistan State Oil acquired Shell Pakistan's PRL stake
[1]Pakistan State Oil acquired Shell Pakistan's holding in Pakistan Refinery Limited.
- 2014
Penex isomerization project awarded
[1]PRL awarded Honeywell UOP a contract for an isomerization unit intended to support higher-octane gasoline production.
- 1964
Refinery operations began
[1]The Korangi refinery began operations and was inaugurated by President Ayub Khan.
- 1960
Pakistan Refinery Limited incorporated
[1]PRL was incorporated as a public limited company, with construction assigned to the M. W. Kellogg Group of Companies.
- 1959
Government agreement with oil-company consortium
[1]Pakistan agreed with Burmah Oil Company, California Texas Oil Corporation, The Shell Petroleum Company, and Standard Vacuum Oil Company to develop a refinery at Korangi in Karachi.
Products and positioning
An established Pakistani downstream oil company and domestic hydro-skimming refinery serving the country's fuel and petroleum-product market.
Refined transportation fuel
Motor gasoline
PRL produces motor gasoline from refinery streams including naphtha-derived components. Its isomerization investment was intended to increase the availability of higher-octane gasoline components and improve the refinery's gasoline output.
Refined transportation fuel
High-speed diesel
High-speed diesel is part of PRL's core petroleum-product slate and serves road transport and other diesel-consuming sectors in Pakistan.
Heavy fuel
Furnace oil
Furnace oil is a heavier refinery product used in industrial and energy applications. It is produced alongside PRL's lighter transport fuels within the refinery's hydro-skimming configuration.
Aviation fuel
Jet fuel
PRL produces aviation turbine fuel identified in the reference material as JP-1 and JP-8, supplying a petroleum product category used by aviation customers.
Refined petroleum product
Kerosene
Kerosene is included in PRL's documented product range and is produced through the refinery's crude-processing and fractionation operations.
Refinery intermediate
Naphtha
Naphtha is both a petroleum product and an important refinery feedstock. PRL's Penex isomerization unit was designed to convert naphtha into isomerate for gasoline blending and octane improvement.
Gaseous petroleum fuel
Liquefied petroleum gas
PRL recovers liquefied petroleum gas through its LPG recovery facilities, adding a gaseous fuel product to its broader refined-product portfolio.
Brand decisions
2023
Proposed United Energy Group investment and share transferM&ABackground
PRL and its shareholders considered a major capital-injection arrangement for a refinery project.
Action taken
United Energy Group agreed to a proposed US$1.5 billion investment, while Pakistan State Oil agreed in principle to sell more than 30 percent of its PRL shareholding.
Aftermath
The reference material does not confirm completion of the proposed transaction, so its final ownership and investment consequences remain unverified.
Proposed investment. US$1.5 billion proposed investment (October 2023)
2023
Long-term Russian crude-supply agreementStrategyBackground
PRL pursued a longer-term crude procurement arrangement to support refinery feedstock supply.
Action taken
The company signed a long-term crude-oil supply agreement with a Russian counterpart.
Aftermath
The available material does not provide details on volumes, pricing, duration, or subsequent operating impact.
2014
Investment in Penex isomerization capacityProduct launchBackground
PRL sought to improve its gasoline-producing capability and support higher-octane motor-fuel output.
Action taken
The company awarded Honeywell UOP a contract to provide a Penex isomerization unit.
Aftermath
The unit was commissioned in 2016 and was reported to have doubled high-quality gasoline output to approximately 24,000 metric tonnes per month.
Recent events
Physicians Resources completes rebrand as PRL[2]
Reported:
Physicians Resources LTD said it had completed a major rebranding effort and established itself as PRL, describing the change as an evolution from a regional medical billing company into a national healthcare revenue management company.
PSO acquires additional PRL shares from Shell Petroleum UK[3]
Reported:
Pakistan State Oil Company Limited acquired 10.5 million shares in Pakistan Refinery Limited from Shell Petroleum Company Limited, UK, increasing PSO’s shareholding in PRL.
Sources3 sources
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