Local authorities have initiated the process of transporting discounted Russian crude oil from the vessel to a refinery in the port city.
According to insiders familiar with the matter, it has been reported that out of the total 45,000 metric tonnes of crude oil, 35,000 metric tonnes have already been offloaded from the ship and transferred to Pakistan Refinery Limited (PRL).
The remaining crude oil, which arrived in the Pakistani waters after a journey of over 20 days from the Port of Oman, is expected to be fully shifted to the refinery tomorrow. This development marks a significant milestone for Pakistan, as it is the first time the country has received such a shipment, having traditionally imported oil from Gulf nations.
Prime Minister Shehbaz Sharif announced the arrival of the cargo in Karachi, emphasizing the fulfillment of a promise made to the nation. He expressed his satisfaction and described the day as transformative.
In April, Pakistan placed its initial order for discounted Russian crude oil as part of a new agreement between Islamabad and Moscow.
After the crude oil is refined, a comprehensive test report will be submitted to the government, evaluating the quality, yields, transportation costs, and commercial viability of the oil.
Following the approval of the report, the government intends to establish a long-term government-to-government deal with Russia. This test cargo will also help assess transportation costs, refining expenses, profit margins for refineries, and the efficiency of the payment mechanism based on the Yuan currency.
The arrival of discounted Russian crude oil, priced at around $50-52 per barrel against the G7 countries’ price cap of $60 per barrel, is expected to positively impact furnace oil costs in Pakistan. This move signifies a step towards securing affordable energy resources and enhancing Pakistan’s energy security.