The first cargo of discounted Russian crude oil under a recently created deal between Islamabad and Moscow landed in Karachi on Sunday, starting the development of improved commercial ties between the two countries.
The oil cargo travelled from Russia to Oman before travelling to Pakistan more than a month ago. According to official announcements, the oil will start to be processed at the Pakistan Refinery Limited (PRL) on Monday as the unloading process got underway.
Due to the Karachi port’s restricted ability to accept larger boats, the 100,000 metric tonne oil supply was split into two sections in Oman during its protracted journey. Two smaller ships that were each carrying 50,000 metric tonnes of oil then set off towards Karachi.
Prime Minister Shehbaz Sharif tweeted his excitement at the cargo’s arrival, calling Sunday a “transformative day” and reiterating his commitment to the country.
He voiced the opinion that these changes will gradually improve affordability, energy security, prosperity, and economic growth. The Prime Minister also thanked and acknowledged everyone who contributed to this national effort and made it possible for Russian oil imports to fulfil their promise.
Sources claim that the country’s current domestic oil price system will not apply to this supply of Russian oil. Therefore, the PRL will be responsible for any gains or losses related to the Russian oil. According to the sources, this cargo also acts as a test case to assess the refinery ratio and the quality of the crude oil. The federal government will get a report to help guide future choices about long-term commercial oil deals.
Pakistan has negotiated a reduced price of up to $18 per barrel to secure its contract for the maiden shipment of Russian crude oil. According to insider knowledge, Islamabad implemented a discount ranging from $16 to $18 per barrel after the Platts crude oil pricing.