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Saturday, April 13, 2024

Exclusive: Pakistan places first order for discounted Russian crude oil

The deal will see Pakistan buy crude oil only, not refined fuels, and imports are expected to reach 100,000 barrels per day if the first transaction goes through smoothly, Minister Musadik Malik told Reuters on Wednesday night.

Pakistan has placed its first order for discounted Russian crude oil under a new deal struck between Islamabad and Moscow, the country’s petroleum minister said, with one cargo to dock at Karachi port in May.

The deal will see Pakistan buy crude oil only, not refined fuels, and imports are expected to reach 100,000 barrels per day if the first transaction goes through smoothly, Minister Musadik Malik told Reuters on Wednesday night.

Read more: US privately urged traders to resume shipments of Russian oil – FT

“Our orders are in, we have placed that already,” he said.

“Yes it is true that we will be getting only crude, not refined oil,” Malik said in response to confirm sources information whether that’s correct.

He said Pakistan’s Refinery Limited (PRL) will initially refine the Russian crude, with other refineries to be included later after a trial run.

Read more: Russian oil shifts to Middle East

Russian Energy Minister Nikolay Shulginov led a delegation to Islamabad in January to hold talks on the deal, after which he said oil exports to Pakistan could begin after March.

Earlier, Malik had said that crude oil supply from Russia to Pakistan will start by the end of this month.

He had also assured that domestic gas consumers of Karachi will get adequate gas supply during Sehri and Iftari timings.

In his media talk after convening a meeting with business community at Karachi Chamber of Commerce and Industry (KCCI), Musadik had said negotiations with Russia are going forward on a fast track basis, and the first cargo shipment will reach Pakistan by the end of April.