TotalFinaElf announces the signature of a joint-venture agreement between its subsidiary, Total Raffinage-Distribution S.A., and the Pakistani company Parco (Pak-Arab Refinery Ltd.), to create a distribution network for petroleum products in Pakistan. Parco is a joint-venture company between the governments of Pakistan and Abu Dhabi. Initial investment for putting the new network into service will require an investment of US$20 million.

A joint company, Total Parco Pakistan Limited, will be established in which TotalFinaElf will have a 60% interest and Parco 40%. Parco is the owner of Pakistan’s newest and largest refinery, with a capacity of 100,000 barrels a day, located at Multan in Punjab.

According to the terms of the newly signed agreement, Parco will make 25% of the new refinery’s overall production available to Total Parco. TotalFinaElf will contribute its international expertise in the area of marketing petroleum products.

Pakistan, a country with a population of around 130 million, has a strong market potential. This new activity reinforces TotalFinaElf’s downstream position in Pakistan where it is already present in the areas of aviation fuel and lubricants, and is continuing its oil exploration in Pakistani waters.