Today (Tuesday), a Russian delegation will meet with Pakistan State Oil (PSO) in Karachi to conclude a government-to-government agreement to buy crude oil (GtG).
PSO has been chosen to represent Pakistan during the discussions and contract signing for the import of Russian crude oil. According to a national daily, the state-owned Operational Services Center (PSC) has been proposed by the Russian side.
The cap price set by the G7 nations on Russian oil following the Ukrainian War is $10/barrel more than what the Petroleum Division wants to lock in at close to $50/barrel.
Moscow wants to know if Pakistan is really interested in purchasing its crude. But, before signing an agreement, Russians will resolve all conditions with PSO representatives, including the method of payment, the cost of shipment with a premium, and the cost of insurance. The Russian side may raise discounts when speaking with the PSO technical team.
According to sources, it would take 30 days to transport crude oil from Russian ports, costing $10–$15 per barrel. Although the Pakistan National Shipping Corporation ships or Russian tankers are now being evaluated to transport crude from the Russian port, the government does not wish to publicly disclose the method of payment for crude oil imports from Russia at this time.
The oil contract with Russia is almost finished, according to last week’s statement from Minister of State Musadik Malik, and the first shipping order would be given next month. The minister also claimed that Russia will provide the nation with one-third of the country’s crude oil imports at a discounted rate, with an influence on the people.
In order to compare the landed cost of crude to the cargo Pakistan receives from ADNOC and Saudi Aramco, he continued, the first crude oil shipment from Russia will arrive at the end of the next month of April.