UPDATE 1-Dubai's Abraaj buys stake in Pakistan's Bosicor

(Adds details, background)

By Daliah Merzaban

DUBAI, March 3 (Reuters) - Dubai-based private equity company Abraaj Capital said on Monday it bought into Pakistani energy firm Bosicor to tap growing demand for petroleum products in the world's sixth most-populous nation.

Abraaj acquired 40 percent in each of Bosicor Oil Pakistan Ltd and Bosicor Chemical Pakistan Ltd to finance construction of a chemical plant and refining unit, it said in a statement, without saying how much it paid for the stake.

The transaction included a minority stake in Bosicor Pakistan Ltd (BOSI.KA), which operates Pakistan's fifth-largest oil refinery, Abraaj said, without being more specific.

Demand for petroleum products in Pakistan should grow 5 percent per year until at least 2010, said Abraaj, which made the investment through a $2 billion infrastructure fund it manages.

The investment would be used by Bosicor to set up a petrochemical plant and refining unit with capacity of 145,000 barrels per day, Abraaj said.

"Further investments in related infrastructure are planned over the next few years with a view to creating Pakistan's first global-scale refining, petrochemicals and energy conglomerate," it said.

Abraaj said in October it aims to raise about $1 billion selling shares in an initial public offering this year to finance the acquisition of a Middle East finance company.