KOHAT: Construction work on the country`s sixth oil refinery has been launched in Kohat by a US-Dubai based consortium, headed by SPEC company, with an initial investment of Rs6 billion, official sources said, adding that the project would cost Rs50 billion.

They said that the project was given the name of Khyber Oil Refinery which had been approved by Khyber Pakhtunkhwa Board of Investment and Trade chairman Mohsin Aziz.

They said that the plan was discussed in a meeting among PTI chairman Imran Khan, KP energy minister Atif Khan, Khyber Pakhtunkhwa Oil and Gas CompanyLimited (KPOGCL) and investor Zafar Sheikh at Dubai road show in 2015.

Talking to this correspondent on Sunday, MNA Shehryar Afridi confirmed the project, saying that Chicago-based investor Zafar Sheikh had selected Markondi area in Kohat between the city and Khushalgarh along the Indus River for setting up the refinery.

`With the preliminary funds 1,700 kanals have been acquired and work on the boundary wall is in progress. In all, 3,500 kanals will be purchased,` said Mr Afridi. The chief minister has already imposed Section 4 in the region banning sale of land, while the federal government had issued the NOC.

He said that Imran Khan and Chief Minister Pervez Khattak had told the consortium that the government had no funds for this gigantic project after which Zafar Sheikh agreed to make all the investment. He said that the owner would shortly visit Kohat to address a press conference and inspect theconstruction work.

The MNA said that the refinery would be completed in two years and it would generate 100,000 direct and indirect jobs. The refinery would have the capacity to process 20,000 tons of crude oil and produce LPG, petrol, kerosene, jet fuel, diesel, furnace oil and other products.

He said that latest machinery to be imported from US would be installed at the refinery where indigenous and imported oil would be purified.

In the next two phases, he said, the consumption would be enhanced from 30,000 to 40,000 barrel per day. Similarly, the company would establish a thermal power station of 50 megawatt in the first phase.

An KPOGCL official wishing not to be named said that 50,000 barrel oil was produced in Kohat, Karak and Hangu districts of Khyber Pakhtunkhwa, which was sent for refining to oil refineries in Attock and Karachi.