The UK's Stone & Webster has been appointed main engineering consultant for the joint-venture refinery project between Pakistan State Oil (PSO) and South Korea's Hyundai Engineering & Construction Company.

A financial adviser for the project, estimated to cost between $700 million- 800 million, will be selected in June or July, PSO says.

Stone & Webster is due to complete a feasibility study on the project in six months. Hyundai will act as project co-ordinator and the local Enar Petrotech Services will provide engineering services.

The location of the refinery has still to be decided. It will have an annual capacity of up to 4.5 million tonnes a year, equivalent to about 90,000 barrels a day. About a third of this will be supplied from production facilities in the Badin region. The remainder will come through a new pipeline which will connect Badin to Karachi.