A delegation from Russia is scheduled to meet with Pakistan State Oil (PSO) in Karachi to finalise a government-to-government (G2G) crude oil import deal today.
PSO has been chosen to represent Pakistan in the negotiations and signing of the deal, while the Russian side has nominated the state-owned Operational Services Center (PSC), according to a national daily.
The Petroleum Division aims to secure the deal at a price close to $50/barrel, which is $10/barrel lower than the cap price set by G7 countries on Russian oil following the Ukraine conflict. Russia wants to confirm Pakistan’s genuine interest in purchasing its crude before proceeding with the agreement. Before signing, the Russians will finalise all prerequisites with PSO officials, including the mode of payment, shipping cost with premium, and insurance cost. During discussions with the PSO technical team, the Russian side may offer discounts.
According to sources, shipping crude oil from Russian ports will take 30 days, resulting in a transportation cost of $10-15/barrel.
The government has not yet disclosed the payment method for crude oil imports from Russia, but options currently being considered include Pakistan National Shipping Corporation ships or Russian tankers for transportation from the Russian port.
Minister of State Mussadik Malik announced last week that the crude oil deal with Russia is nearing completion and that the first shipping order will be placed next month. He also mentioned that Pakistan will receive one-third of its crude oil imports from Russia at a concessional rate, which will benefit the people.
He added that the first crude oil vessel from Russia will arrive in late April for a test cargo to compare the landed cost of crude with that of cargoes received from ADNOC and Saudi Aramco.
