Pakistan to Import 32.7 MBL Oil Under Saudi Fund for Development Program

Pakistan will import around 32.7 million barrels (MBL) of crude oil in 2022 under an agreement with the Saudi Fund for Development (SFD) to meet its needs for petroleum products on deferred payment.

The Associated Press of Pakistan (APP) reported that “the Pak-Arab Refinery Company Limited (PARCO) and National Refinery Limited (NRL) are planning to import 16.89 and 15.81 million barrels of oil in the year 2022 respectively”.

As per the agreement, crude oil worth $100 million per month could be imported on deferred payment for one year.

“The price will be as per existing long-term agreements/contracts between Saudi Aramco, PARCO, and NRL,” APP added.

The SFD program has been operative since 7 March 2022, and the procurement of oil has commenced accordingly.

The APP’s report detailed that “the facility will be available for a 12 months period which may be extended for 1 year upon the consent of the parties. Repayment of the withdrawn amounts plus the margin at the rate of 3.8% shall be made in one annual installment in US$”.

Meanwhile, a senior official privy to the developments of the petroleum sector told the APP that the government had given the Exploration and Production companies that are operating in Pakistan a target to produce around 29 MBL of crude oil in the current fiscal year.

These companies had produced 27 MBL of oil in 2020-21, he added.

Faiz Paracha is a seasoned broadcast journalist with over 15 years’ experience in reporting and e...