Venezuela has proposed supplying crude oil to Pakistan to boost cooperation in the energy sector, reported a national daily.
This offer was made during a recent meeting between Pakistan’s ambassador and Venezuelan leadership. The official correspondence disclosed:
Despite the international sanctions against Venezuela, the country has the ways and means to export oil to Pakistan.
After Venezuela’s offer, Pakistan’s Petroleum Division met with the country’s oil sector and was informed of the proposal. However, the oil sector representatives instructed the Petroleum Division to request specifications of the crude oil to determine if local refineries can handle it.
The report added that Venezuelan crude is believed to be heavy, which the local refineries cannot process.
The oil sector asked the ministry to seek the details as to whether light crude oil is available in the North American country in order to move forward on this offer.
Pakistan is seeking cheaper crude oil from alternative sources due to high global market prices. The country is also engaged in discussions with Russia regarding crude imports. The previous government of Pakistan Tehreek-e-Insaf (PTI) first announced the possibility of importing crude oil from Russia.
The current government continued the effort when a delegation led by State Minister of Petroleum Mussadiq Malik visited Russia in November which was followed by Russian talks with Pakistan in mid-January as part of a broader economic partnership.
The pricing of Russian crude oil has yet to be established. Despite the government’s hope of receiving a Russian oil supply in March, sources suggest it is not feasible as the rate and other details still need to be finalized.