LAHORE/ISLAMABAD: If Prime Minister Shehbaz Sharif contacts Russian President Vladimir Putin, Pakistan can get the crude oil deal with Russia at the desired discount rate.
Pakistan is interested in buying about 100,000 barrels per day of Russian crude oil and if the country’s refineries become compatible with blended Russian crude oil, the amount of crude oil from Russia will increase accordingly.
Amid ongoing talks with the Russian Federation, the two sides are working to finalize a memorandum of understanding (MoU) or a protocol that could be signed at the end of the three-day talks today.
However, Moscow made it clear to Islamabad that it would announce Russian crude oil prices to Islamabad after signing a memorandum of understanding or protocol for energy trade (crude oil, petroleum products and liquefied natural gas). will, which will show the seriousness of the government. Pakistan towards energy trade.
Officials involved in the talks told JEE News, “Russian experts also asked their Pakistani counterparts not to mention the $60 per barrel price ceiling imposed on Russian oil by the G7 countries while crude imports was discussed,” officials involved in the talks told JEE News.
However, sources told the publication that Russian President Putin will decide on the issue of concession on Pakistan’s crude oil if senior officials of the Pakistani government approach him.
It should be noted that the price of Russian oil in the international market is currently between 70 and 75 dollars per barrel, while the price of Brent is 81 dollars per barrel. However, Pakistan hopes to get crude oil from Russia below $60 per barrel under a government-to-government mode.
As for the $3 billion Pakistan Stream Gas Pipeline (PSGP), Pakistan maintains that it will build the pipeline but it is tied to the provision of more LNG and infrastructure at the port. Russia wanted to initiate the project and proceed with finalizing the shareholding under the existing intergovernmental agreement.
But now Pakistan wants them to do this project on BOOT (Build, Own, Operate and Transfer) basis.
Overall, the officials said that the negotiations at the level of the intergovernmental commission are moving in a positive direction, but after the signing of the memorandum of understanding for energy trade, Russia will bring a price for Pakistan.
Officials said this meant there would be no decision on crude oil price concessions and the life of the government-to-government deal during ongoing negotiations.
However, Pakistan State Oil (PSO) Mandarin is in talks with Russian officials and experts on crude, finished products and LNG issues on behalf of Pakistan, and the officials of Oil and Gas Development Company and Mari Gas Company are not aware of the matter. are discussing. LNG storage construction issue
“PARCO can process up to 30% of Russian blended oil, Pakistan Refinery Limited 50% and Cynergico refinery up to maximum. As far as LNG imports are concerned, Russian private companies have told Pakistan that they will After 2025-26 may offer on long-term basis.
Putin considers Pakistan as an important partner
In a separate development, a delegation led by Russian Energy Minister Nikolay Shulginov met Prime Minister Shahbaz Sharif in Lahore and discussed cooperation in various fields to strengthen Pakistan-Russia relations.
While welcoming the delegation, the Prime Minister highlighted the importance of Pakistan’s relations with Russia.
A delegation led by the Russian Energy Minister, Mr Nikolay Shulginov called on Prime Minister Muhammad Shehbaz Sharif in Lahore today.
— Prime Minister's Office (@PakPMO) January 19, 2023
Welcoming the delegation the Prime Minister highlighted the importance Pakistan attached to its relations with the Russian Federation. pic.twitter.com/8Itj7yp65R
He recalled his meeting with President Putin in Samarkand in September 2022 and said that important decisions were taken in that meeting to strengthen bilateral relations. They expressed their desire to increase bilateral cooperation in trade, investment and economic matters with satisfaction.
The Russian minister responded to the Prime Minister’s sentiments and delivered a special message from President Putin to his host.
In his message, President Putin reiterated his strong interest in deepening bilateral relations, calling Pakistan an important partner of Russia in South Asia and the Islamic world.
Both sides agreed on the importance of the energy sector for the development of bilateral economic and trade relations. In this regard, long-term supply of oil and gas from Russia to Pakistan was discussed. Matters related to gas pipelines were also reviewed.
The Prime Minister provided guidance for the work of 8th Round of Pakistan-Russia Inter-Governmental Commission meeting scheduled to be held in Islamabad on 20 January 2023.
— Prime Minister's Office (@PakPMO) January 19, 2023
Prime Minister Shehbaz Sharif also provided guidance for the work of the eighth round of the Pakistan-Russia Intergovernmental Commission meeting to be held in Islamabad on January 20.
Federal Ministers Sardar Ayaz Sadiq, Syed Naveed Qamar, Minister of State for Petroleum Mossadegh Malik and Special Assistant to Prime Minister Tariq Fatemi were also present.
