For the first time, Prime Minister Shehbaz Sharif on Sunday announced that a Russian oil tanker had finally reached Karachi on Sunday, calling it a “transformational day” for the country.
In his message on the social networking site Twitter, Prime Minister Shahbaz Sharif said that I have fulfilled another promise made to the nation. Delighted to announce that Russia’s first cargo of discounted crude oil has arrived in Karachi and the oil will begin to flow from tomorrow.
In April, Pakistan placed its first order for discounted Russian crude under a new deal between Islamabad and Moscow.
I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow.
— Shehbaz Sharif (@CMShehbaz) June 11, 2023
Today is a transformative day. We are moving one step at a time toward prosperity, economic…
The Russian vessel Pure Point – a 183 meter long oil tanker – is berthed at birth number 2 at the port carrying 45,000 metric tonnes of oil.
Expressing his happiness on the occasion, the Prime Minister said, “We are moving step by step towards prosperity, economic growth and energy security and affordability.”
He said that this is the first cargo of Russian oil in Pakistan and the beginning of new relations between Pakistan and Russia.
“I appreciate all those who have been part of this national effort and contributed to turning the promise of Russian oil imports into reality,” he added.
Pakistan initially expected the ship from Russia to reach Oman on May 27-28.
A Russian cargo ship carrying 100,000 tons of crude oil was behind schedule and arrived at the Omani port of Duqm on June 7, JEE News reported, citing an official.
“A vessel loaded with Ural crude at a Russian port on April 21 was delayed for 10 days due to technical reasons,” the official added.
“It then arrived at Egypt’s Suez Canal on May 17, where it waited in long lines for 12 days to cross the canal.”
The remaining 50,000 tonnes of Russian crude will be delivered to Port Qasim on June 20. Officials said they would ensure the safe and smooth flow of Russian crude oil. The delay in the arrival of Russian crude oil is due to logistical challenges, the official said.
“The delay in the arrival of the cargo will not increase the cost of transportation as it is scheduled with the Russians,” he said. “However, if the price of crude oil falls during this period, it will be detrimental to the country.” Pakistan Refinery Limited (PRL) will refine the test cargo of Russian crude oil, blending it with crude oil imported from the UAE and Saudi Aramco.
PRL has been tasked with submitting test reports to the government on oil quality, yield and commercial viability. The test cargo will also help the government estimate transportation costs, refining costs and margins for refineries.
Pakistan imports 70 percent of its crude oil, which is refined by PRL, National Refinery Limited, Pak Arab Refinery Limited, and Byco Petroleum. The remaining 30% is produced and refined locally by local refineries including Attock Refinery Limited.
The move comes at a time when Pakistan is trying to diversify its sources of oil imports amid rising global prices. Russia is a major producer of crude oil and has offered the country a discount on its oil prices. Payment for Russian crude oil will be made in yuan through the Bank of China.
