The Ministry of Energy (Power Division) asked the Managing Directors of the key oil refineries of the country for a detailed analysis regarding the option of importing crude oil from Russia, along with recommendations, to be sent by 28 June.
The ministry requested Pak-Arab Refinery Limited, National Refinery Limited, Pakistan Refinery Limited, and Byco Petroleum Pakistan Limited to consider the technical suitability of crude grades in view of each refinery’s configurations and yields in the detailed analysis and the quantity and grade of the subject crude to be required by the refinery.
The refineries will also provide a detailed analysis of the transportation/freight analysis for imports from Russia as compared to the normal imports from the Middle East based on a cost and benefit analysis, payment methods, and the existing commitment of upliftment from the Arab Gulf region with respect to the terms of the contracts.
Russian oil is cheaper than global oil prices and many regional countries are either importing from Russia or working on it. The previous government had also started due diligence on this process but could not move ahead. Now, the current government, despite pressure from the USA, has also started considering it. Russia currently supplies 27 percent of the EU’s imported oil and 40 percent of its gas.