- Web Desk
- 30 Minutes ago
Pakistan allows local refineries to purchase ‘cheap’ Russian oil
- Web Desk
- Oct 19, 2023
ISLAMABAD: In a significant development in the realm of international energy trade, Pakistan has finalized a long-term oil purchase agreement with Russia, allowing local refineries to directly procure oil.
This agreement with Russia is poised to offer cost-effective oil supplies and presents a momentous step forward in the context of Pakistan’s energy infrastructure.
Under the terms of this milestone agreement, Russia will deliver oil directly to Pakistani ports at a price of $60 per barrel, with the first consignment scheduled to arrive in December.
This groundbreaking deal comes as a result of intense negotiations and a desire to explore economical options for the procurement of crude oil.
The agreement will enable Pakistan to access Russian oil, potentially lowering costs and enhancing energy security.
According to sources within the Ministry of Petroleum, this commercial agreement was established after thorough consultations and discussions following regular supply.
The foundation of this commercial deal marks an important milestone in the relationship between the two nations and serves to bolster Pakistan’s energy crisis.
Sources have revealed that the initial cargo under this commercial agreement is expected to reach Pakistan in December and will consist of one million metric tons of crude oil.
According to the sources, he terms of the deal have taken into account the market dynamics and have set a competitive pricing structure to secure an advantageous position for Pakistan.
Officials from the Ministry of Petroleum also disclosed that this deal offers significant cost savings for Pakistan. Russian crude oil, obtained at a premium, is set to be approximately $10 per barrel cheaper than the standard market rates, which can translate into substantial savings for the country in the energy sector.
They said that the signing of the historic agreement is a testament to Pakistan’s commitment to securing affordable and consistent sources of energy, and it is expected to have a positive impact on the nation’s economy.
In an earlier stage, the Ministry of Petroleum noted that Pakistan could save an estimated $40 million on its first cargo consignment through this deal.