Islamabad: A second shipment of 55,000 tonnes of discounted Russian crude oil arrived at the Karachi port on Tuesday. This import is vital to meet the country’s energy needs.
“The ship ‘Clyde Noble’ carrying Russian has arrived at Karachi Port” in the Arabian Sea, Karachi Port Trust (KPT) said. The statement added that the ship loaded with Russian crude oil would dock at the oil pier as soon as the berthing plan of the ship is finalised. Initially, Pakistan’s Refinery Limited (PRL) will refine the Russian crude, with other refineries joining in after a trial run.
Islamabad Moscow oil deal
Pakistan’s order for cheap Russian crude oil was placed under a new deal between Islamabad and Moscow reached in April 2023 to buy only crude oil, not refined fuels.
The government placed an initial order of 100,000 tonnes of Russian crude oil after prolonged negotiations.
The first cargo carrying 45,000 tonnes of oil docked at the Karachi port on June 11.
The shipment is arriving via Oman from where it has been transported to Pakistan in smaller vessels due to the limited capacity of Pakistani ports to handle larger shipments. The second shipment was slated to arrive on June 20, however, it was delayed by a week.
Prime Minister Shehbaz Sharif called the arrival of the first Russian discounted crude oil cargo a “transformative day” for the country. He described the shipment as “the beginning of a new relationship” between Islamabad and Moscow.
Petroleum Minister Musadik Malik earlier said that Pakistan looks forward to importing about 35 percent of its total crude oil requirement from Russia. Malik did not disclose the details of the oil deal but said the payment was made in Chinese currency. However, Russia’s energy minister Nikolai Shulginov ruled out any exclusive discount for Islamabad while talking to reporters on the sidelines of an economic conference in St. Petersburg.
This import from Russia is expected to save energy import costs and dollar reserves as the country faces an acute financial crisis and a cash crunch. Oil and energy imports account for the largest portion of the country’s imports. Pakistan, the world’s fifth most populous country, is actively exploring options to fulfill its energy requirements. Pakistan and Azerbaijan recently announced their plans to enhance cooperation in the energy sector.
Pakistan has approved a liquefied natural gas (LNG) purchase agreement framework with Azerbaijan. Pakistan State Oil (PSO) and the State Oil Company of the Azerbaijan Republic (SOCAR) will engage in government-level cooperation to facilitate collaboration on energy resources.
