ISLAMABAD: Pakistan is negotiating to buy a second shipment of discounted Russian crude oil, the petroleum minister highlighting the success of a first deal.
Minister of State Musadiq Malik told reporters there was no scenario under which the country was “not benefiting” from Russian crude. “We are finalising another cargo,” he said.
Malik said the first cargo of 100,000 tons of Russian Urals had been successfully tested at the state run Pakistan Refinery Limited (PRL), despite limitations such as higher freight and insurance costs, and producing more furnace oil after refining compared with Arabian light oil.
“It will still benefit us,” he said of the Russian oil. He did not disclose the quantity of oil under discussion for the second consignment. Pakistan has also not given details on the price or discount of the first shipment.
He said the deal with Russia will benefit us in all aspects while agreements with United Arab Emirates and Azerbaijan are in the process of finalization.
The first cargo, agreed in April, docked at Karachi port last month and was paid for in Chinese currency. Pakistan got into Russian the deal in part to save on foreign exchange reserves, which are used mainly on oil imports.
Malik said private entity Pak-Arab Refinery Limited (PARCO) had also been asked to import Russian crude. “We have also requested PARCO’s board to consider and import it,” he said.
Energy imports make up the majority of Pakistan’s external payments. The country imported 154,000 barrels per day (bpd) of oil in 2022, around the same as the previous year.
The crude was predominantly supplied by the world’s top exporter Saudi Arabia, followed by the United Arab Emirates. Pakistan is looking for Russian crude to account for one third of total oil imports.
