KARACHI/ISLAMABAD: The first-ever Russian oil ship carrying over 45,000 metric tons of crude has arrived at Karachi Port on Sunday.
“It is a significant development for Pakistan’s energy sector as the deal between Pakistan and Russia has almost materialized when the first crude oil ship has anchored at Karachi Port”, industry players said.
The Russian ship “Pure Point” carrying 45,142 metric tons crude has successfully anchored at oil tankers’ berth OP2 of Karachi Port Trust, the port sources confirmed.
Pakistan places first order for discounted Russian crude
In a bid to diversify its oil imports sources, Pakistan had signed as agreement with Russian Federation to buy crude on discounted rates a few months back.
Under this deal, Russia sent the first oil tanker carrying 100,000 metric tons of crude that had arrived at Omani port a few days back. The authorities decided that crude oil to be transported to Pakistan through smaller ships as Pakistani ports doesn’t have capacity to accommodate heavy ships carrying more than 50,000 tons liquid cargo.
The second shipment of Russian crude oil from Omani port to Pakistan is expected to be completed in next few days.
Pakistan Refinery Limited (PRL) will initially refine the Russian crude in a trail run. After refining, PRL will submit the test report to the government on the quality, yields and commercial viability of the Russian crude. The PRL’s test report will help the government to assess the transportation and refining costs and margins for refineries.
Meanwhile, Prime Minister Shehbaz Sharif on Sunday announced that first vessel carrying Russian oil finally reached Karachi on Sunday and termed it a “transformative day” for the country.
The prime minister in his tweet on Sunday said, “I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow.”
In April, Pakistan placed its first order for discounted Russian crude oil under a new deal signed between Islamabad and Moscow. Russian vessel Pure Point — a 183-meter-long oil tanker — carrying 45,000 metric tons of oil docked at birth number 2 at the port.
Expressing his joys on the occasion, the prime minister said, “We are moving one step at a time toward prosperity, economic growth and energy security and affordability.”
He said that it was the first ever Russian oil cargo to Pakistan and the beginning of a new relationship between Pakistan and Russia.
“I commend all those who remained part of this national endeavour and contributed to translating the promise of Russian oil import into reality,” he said.
Pakistan was initially expecting the vessel from Russia to arrive in Oman on May 27-28.
A Russian cargo vessel carrying 100,000 tonnes of crude oil was behind schedule and reached the Omani port of Duqm on June 7.
The remaining 50,000 tons of Russian crude will be transported to Port Qasim on June 20. The authorities had said that they will ensure the safe and smooth arrival of the Russian crude.
It is reported that the vessel, which was loaded with Ural crude on April 21 at a Russian port, was delayed for 10 days due to technical reasons.
“It then arrived at Egypt’s Suez Canal on May 17, where it waited in a long queue for 12 days to cross the canal.”
The official had said the delay in the arrival of Russian crude oil is due to logistical challenges.
“The delay in the arrival of the cargo will not increase the transportation cost as it is already settled with the Russians,” he had said. “However, if the price of crude oil in the meanwhile goes down, then it will be detrimental to the country.” Pakistan Refinery Limited (PRL) will refine the test cargo of Russian crude oil, blending it with crude imported from the United Arab Emirates and Saudi Aramco.
The Pakistan Refinery Limited (PRL) has been assigned to submit the test report to the government on the quality, yields, and commercial viability of the oil. The test cargo will also help the government to assess the transportation costs, refining costs, and margins for refineries.
Pakistan imports 70 per cent of its crude oil, which is refined by PRL, National Refinery Limited, Pak Arab Refinery Limited, and Byco Petroleum. The remaining 30 per cent is locally produced and refined by local refineries, including Attock Refinery Limited.
Russia is a major producer of crude oil and has offered the country discounted prices on its oil.
Copyright Business Recorder, 2023
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