Russia has offered to supply blended crude oil to Pakistan as its refining sector lacks the ability to process crude oil of a single specification.
The Russian offer was made during a virtual meeting between officials from both countries on Thursday. State Minister for Petroleum Dr. Musadik Malik from the Pakistani side led the talks with the Russian cohort which included senior officials from the energy ministry and other departments, reported a national daily.
According to sources familiar with the situation, Pakistani officials told their Russian counterparts that the country required crude oil, petroleum products, gas, and external financing for infrastructure development. The Russian side told the Pakistani authorities that they were ready to collaborate and would discuss it further when a delegation from Moscow will visit Pakistan next month.
It was further indicated that Russia was willing to supply Pakistan with 100,000 barrels of crude oil on a daily basis. The Pakistani authorities, however, informed them that the country’s refineries were hydro-skimming refineries that processed light crude oil. They added that light crude oil would be preferable for efficient processing.
The Russian authorities said that if Pakistani refineries are unable to process one crude oil, they can supply a blended crude substitute. More discussions will take place at the Pakistan-Russia Inter-Governmental Commission (IGC) meeting scheduled to be held in the second week of January 2023.
While Pakistan talks to Russia for a “crude bailout”, it is no secret that the South Asian nation currently has no long-term plans for curbing fuel shortages, and spare supply in the market is rapidly dwindling due to increased demand from other countries.
Keeping that in mind, any deal in place will help the South Asian nation save billions of dollars if energy projects with Russia are implemented while purchasing petroleum products from Moscow would relieve pressure on the country’s forex reserves.
