Local authorities have started delivering the much-anticipated discounted Russian crude oil from the vessel to the port city’s refinery. According to people at the facility, 3,000 metric tonnes of crude oil were offloaded from the ship to Pakistan Refinery Limited (PRL).
They also stated that the crude oil, which took more than 20 days to arrive in the country, will be completely transferred to the refinery tomorrow. The ship arrived in the Pakistani seas from the Port of Oman.
The cargo arrived in Karachi on Sunday, according to Prime Minister Shehbaz Sharif, a first for Pakistan, which has typically imported the item for oil-rich Gulf states.
“I have kept another of my promises to the country.” We are pleased to report that the first discounted Russian crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow.”
“Today is a transformative day,” he declared.
Pakistan placed its first order for discounted Russian crude oil in April, as part of a new agreement between Islamabad and Moscow.
According to the News, after refining the crude, a test report on the quality, yields, transportation costs, and commercial viability of the crude oil would be presented to the government.
Following the report’s acceptance, the government will pursue a long-term government-to-government (gtg) agreement with Russia.
The test cargo will also assist the government examine transportation expenses, refining costs, and refinery margins, as well as how smooth the payment method based on the Yuan currency is.
Pakistan imports 70% of its crude oil, which is refined by the Pakistan Refinery Limited, National Refinery Limited, Pak Arab Refinery Limited, and Byco Petroleum.
The remaining 30% is generated locally and refined by local refineries such as Attock Refinery Limited.
The decision to acquire oil from Russia comes as Pakistan seeks to diversify its sources of oil imports in the face of rising world costs.
Russia, a major crude oil producer, has offered the country cheaper oil pricing. The Russian crude will be paid for in Yuan via the Bank of China.
The Russian crude is believed to have arrived in Pakistan at a price of $50-52 per barrel, compared to the G7 price cap of $60 per barrel, therefore the furnace oil cost may rise at this rate.