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Pakistan begins transporting much-awaited Russian oil to refinery

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1 year ago

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  • Crude oil being shifted to Pakistan Refinery Limited.
  • The entire oil will be shifted to refinery tomorrow.
  • Vessel reached Pakistan waters from Port of Oman.

KARACHI: Local authorities have begun transporting the much-anticipated discounted Russian crude oil from the vessel to a refinery in the port city, people familiar with the matter told Geo News Monday.

People in the facility said that of the 45,000 metric tonnes of crude oil, 3,000 metric tonnes had been offloaded from the ship to Pakistan Refinery Limited (PRL).

They added that the crude oil, which took more than 20 days to reach the country, will be entirely shifted to the refinery tomorrow. The vessel reached the Pakistani waters from the Port of Oman.

Prime Minister Shehbaz Sharif announced Sunday that the cargo had reached Karachi — a first for Pakistan, which has traditionally imported the commodity for oil-rich Gulf nations.

“I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow.”

“Today is a transformative day,” he said.

In April, Pakistan placed its first order for discounted Russian crude oil under a new deal signed between Islamabad and Moscow.

The News reported that after refining the crude, a test report would be submitted to the government on the quality, yields, transportation cost, and commercial viability of the crude oil.

Following the approval of the report, the government will go for a long-term government-to-government (gtg) deal with Russia.

The test cargo will also help the government assess the transportation costs, refining costs, and margins for refineries and also to know how smooth the payment mechanism that has been carved out based on the Yuan currency.

Pakistan imports 70% of its crude oil, which the PRL, National Refinery Limited, Pak Arab Refinery Limited, and Byco Petroleum refine.

The remaining 30% is locally produced and refined by the local refineries, including Attock Refinery Limited.

The move to import oil from Russia comes as Pakistan is looking to diversify its sources of oil imports amid rising global prices.

Russia is a major producer of crude oil and has offered the country discounted oil prices. The payment for the Russian crude will be made in Yuan through the Bank of China.

The Russian crude is reported to have come to Pakistan at $50-52 per barrel against the price cap of $60 per barrel imposed by the G7 countries, so at this cost, the furnace oil cost may go in a positive trajectory.

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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