ISLAMABAD: Pakistan and Russia are actively discussing terms for the import of Russian oil, with Petroleum Minister Musadiq Malik highlighting the complexities involved, including shipping logistics, insurance, and potential secondary US sanctions.
Speaking at a media briefing, Malik refrained from disclosing the oil price but clarified that such deals require intricate planning. He noted that Pakistan State Oil (PSO)’s Pakistan Refinery Limited (PRL) imported a Russian oil cargo under a previously established framework using a public-sector special purpose vehicle (SPV) and Chinese currency. However, the caretaker government revised the approach, allowing private companies to handle oil imports instead.
Malik dismissed reports claiming Pakistan secured discounted crude from Russia but affirmed ongoing negotiations for broader collaboration. These include offshore oil and gas exploration, oil refining, and grain trade, as confirmed by Russian Deputy Energy Minister Roman Marshavin during recent intergovernmental meetings in Moscow.
The discussions come as Russia shifts its energy exports to new markets due to the EU embargo. Regular oil supplies to Pakistan began in 2022, and both countries are now working to enhance these deliveries and diversify traded goods, including Russian fertilizers and agricultural products.
Separately, Malik revealed efforts to address Pakistan’s LNG surplus, with five cargoes postponed and negotiations underway to defer five more. He attributed the surplus to limited LNG uptake by power plants and high costs discouraging private buyers.
The minister also highlighted Saudi interest in Pakistan’s energy sector, noting that an investment of $1.7 billion in PRL’s upgradation is under consideration. Plans for a Greenfield refinery worth $8–10 billion are being developed, with a roadshow in Saudi Arabia scheduled soon.
These developments reflect Pakistan’s broader efforts to secure sustainable energy partnerships amid economic challenges.
Story by Wasim Iqbal
