Industry

Ship Carrying ‘Cheap’ Russian Oil Arrives in Karachi

In a landmark development for the country’s energy sector, the first ship carrying Russian crude arrived in Karachi on Sunday.

Oil products tanker Pure Point, carrying 45,142 metric tons of crude oil, has successfully anchored at berth number OP-2. Another shipment carrying 50,000 metric tons is also expected to arrive in the coming day.

Pakistan had been negotiating for months with Russia for the import of discounted Russian crude, in a bid to cut its oil import bill.

In late April, Pakistan placed its first order for Russian crude under a deal struck between Islamabad and Russia. At the time, Energy Minister Musadik Malik highlighted that Pakistan will buy only crude, not refined fuels. The minister also said that imports of Russian crude are expected to reach 100,000 barrels per day if the first transaction goes through smoothly.

In a recent statement, the minister said that the arrival of Russian crude would not immediately result in a decrease in prices but a gradual decline would be seen once the oil supply becomes continuous.

According to Malik, Pakistan plans to fulfill one-third of its crude requirements through the use of discounted oil.

Source: Pro Pakistani