Pakistan’s State Minister for Petroleum Dr. Musadik Malik said that Pakistan will receive the first shipment of cheap oil from Russia by next month.
Pakistan is negotiating with Russia to import oil and gas at discounted rates to reduce pressure on the country’s foreign reserves.
Earlier last month, Pakistani and Russian state-owned oil companies officials held a meeting in Karachi to finalize the deal oil.
Minister for Petroleum Dr. Musadik Malik said in an interview last week the Pakistani government had been successful in finalizing talks with Russia in this regard.
“The first shipment will reach Pakistan next month through a cargo,” the state-run Radio Pakistan broadcaster reported, quoting the minister. “The government would sell cheap oil after receiving this shipment.”
Under the G2G deal, Pakistan’s Petroleum Division wants to lock the deal at close to $50/barrel, according to local media reports.
Previously Minister for Petroleum said Pakistan would receive its first consignment of crude oil from Russia in the first week of April.
It is to be intimated that During the talks, the Pakistan side also discuss the shipping cost, the premium by shipping trader, insurance cover, and mode of payment.
Both sides also discuss prospects of cooperation in the field of electric power, hydropower, renewable energy sources, and oil and gas production.
Discounted Crude Oil :
Last year on 5th December 2022, State Minister for Petroleum Division Musadik Malik announced that Russia decided to provide crude oil, petrol, and diesel to Pakistan at discounted rates.
The decision comes a month after Finance Minister Ishaq Dar said that the country is considering buying discounted Russian oil, pointing out that neighbor India has been purchasing oil from Moscow and Islamabad also has a right to explore the possibility.
Subsequently, Minister of Petroleum division Musadik Malik flew to Russia last week for talks regarding oil and gas supplies at discounted rates.
In a press conference, Musadik Malik claimed that: “Our visit to Russia turned out to be more productive than expected.”
“Russia has decided to provide Pakistan crude at discounted rates […] this is the oil that refineries use to produce diesel and petrol […]. Russia will also give petrol and diesel to Pakistan at lower prices,” he announced.
Minister of Petroleum Division Musadik Malik went on to say that Russia was short on liquefied natural gas (LNG) because of “international pressure”. “So they arranged a meeting of ours with some private companies, that were a part of their delegation […] our talks with them [the companies] have now begun.
“The Russian government is setting up new factories for the production of LNG and they have invited Pakistan to begin talks on long-term contracts for 2025 and 2026,” the minister said.
He also revealed that Russia was “very interested” in pipeline gas supplies to Pakistan and talks between the countries regarding two projects Pakistan Stream (north-south pipelines) and another big pipeline (for internationally piped gas) had begun.