KARACHI: Local authorities have started shipping much-anticipated discounted Russian crude to a refinery in the port city, people familiar with the matter told JEE News on Monday.
Of the 45,000 metric tons of crude oil, 3,000 metric tons were offloaded to Pakistan Refinery Limited (PRL), people at the facility said.
He added that the crude oil, which took more than 20 days to reach the country, will be fully transferred to the refinery tomorrow. The ship reached Pakistani waters from the port of Oman.
Prime Minister Shahbaz Sharif announced on Sunday that the cargo had arrived in Karachi – a first for Pakistan, which traditionally imports commodities to oil-rich Gulf countries.
“I have fulfilled another promise to the nation. I am happy to announce that Russia’s first cargo of discounted crude oil has reached Karachi and the oil will start flowing from tomorrow.”
He said that today is a day of change.
In April, Pakistan placed its first order for discounted Russian crude under a new deal between Islamabad and Moscow.
After refining the crude oil, a test report on crude oil quality, yield, transportation cost, and commercial viability will be submitted to the government, JEE News reported.
After approval of the report, the government will go for a long-term government-to-government (gtg) agreement with Russia.
The test cargo will also help the government estimate transportation costs, refining costs and margins for refineries and how smooth the payment system is based on the yuan currency. .
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 to import oil from Russia 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 oil prices. Payment for Russian crude oil will be made in yuan through the Bank of China.
According to the report, Russian crude oil has come in at $50-52 per barrel against the price range of $60 per barrel from the G7 countries, so at this price, furnace oil prices can move positively.
