Thursday, April 18, 2024

Pakistan Places First Order for Discounted Russian Crude Oil

According to a new agreement reached between Islamabad and Moscow, Pakistan has placed its first purchase for discounted Russian crude oil, according to Minister for Petroleum Musadik Malik.

Months after Pakistan approached Russia to convey its desire to acquire crude oil, the development occurred. Following the order, one cargo will arrive in May at Karachi’s port.

If the initial transaction goes off without a hitch, imports from Pakistan are anticipated to reach 100,000 barrels per day, according to Malik, who spoke to Reuters on Wednesday evening. He declared, “Our orders are in; we already placed that.”

According to him, Pakistan’s Refinery Limited (PRL) will refine the Russian crude initially, with the addition of other refineries subsequently following a trial run. A Russian delegation visited Pakistan earlier this month to have discussions over the payment method.

According to sources with knowledge of the negotiations, the Russians pressed their Pakistani counterparts to ensure that the deal with Moscow remained a secret because they did not want it to be revealed to other countries that buy Russian crude. This was specifically in reference to the discount in crude oil price and the method of payment.

As a result, Pakistan’s top officials likewise opted not to reveal the payment method or the precise discount. Following negotiations on the agreement in Islamabad in January, the Russian Energy Minister Nikolay Shulginov stated that oil deliveries to Pakistan might start in March.

However, there was a delay because the two parties were unable to agree on the payment method and other terms of the agreement.

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