The board of Pakistan Refinery Limited (PRL) has approved a Rs3.15 billion loan from its parent company Pakistan State Oil Limited (PSO). PRL shared the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday. “We are pleased to announce that the Board of Directors of Pakistan Refinery Limited (PRL) has approved the acquisition of a loan facility amounting to Rs3.15 billion, from Pakistan State Oil Company Limited (PSO) to finance the company’s Front-End Engineering Design (FEED) of the Refinery Expansion & Upgrade Project (REUP),” read the statement. PRL shared that the loan has an option of conversion into equity, which will be subject to all requisite corporate and regulatory approvals that may be required then. PRL is a hydro-skimming refinery based in Karachi, Pakistan. Established in 1960, PRL processes imported and local crude oil into products like furnace oil, diesel, kerosene, jet fuel, and gasoline, with a capacity of 50,000 barrels per day. The refinery operates at two locations: the main facility at Korangi Creek and crude oil berthing and storage at Keamari, ensuring efficient operations and logistics. PRL remains a key player in Pakistan’s energy sector, committed to meeting the country’s fuel needs. As per the company’s latest financial results, PRL sustained massive losses to the tune of Rs2.35 billion for the quarter ended on September 30, 2024. During the same period last year, PRL posted a profit-after-tax (PAT) of Rs4.48 billion. Last year, PRL denied reports suggesting that the company agreed to import Russian crude oil at discounted rates.