[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]A Russian delegation will meet with Pakistan State Oil (PSO) in Karachi today (Tuesday) to finalise a crude oil import deal on a government-to-government basis (GtG).
PSO has been appointed to represent Pakistan in the negotiations and signing of a crude oil import agreement with Russia. According to a national daily, the Russian side has nominated the Operational Services Center (PSC), a state-owned company.
Also Read: Brent oil drops $70 per barrel due to chaos in banking sector.
The Petroleum Division wants to lock in the deal at around $50 per barrel, which is $10 per barrel less than the cap price imposed by G7 countries on Russian oil following the Ukraine war.
Meanwhile, Russia wants to know if Pakistan is serious about buying its crude. Regardless, Russians will finalise all prerequisites with PSO officials before signing an agreement, including the mode of payment, shipping cost with premium, and insurance cost. Discounts may be discussed by the Russian side during discussions with the PSO technical team.
According to sources, shipping crude oil from Russian ports would take 30 days, with a per-barrel transportation cost of $10-15/barrel. For the time being, the government will not reveal the method of payment to Russia for crude oil imports, but Pakistan National Shipping Corporation ships or Russian tankers are being considered to transport crude from the Russian port.
Musadik Malik, Minister of State, stated last week that the crude deal with Russia was nearing completion and that the first shipping order would be issued next month. The minister also stated that the country will receive one-third of its crude oil imports from Russia at a reduced rate, which will be passed on to the people.
He also stated that the first crude oil vessel from Russia will arrive at the end of April as a test cargo to compare the landed cost of crude to the cargo Pakistan receives from ADNOC and Saudi Aramco.[/vc_column_text][/vc_column][/vc_row]
