ISLAMABAD – Minister for Petroleum Dr Musadik Malik has expressed his inability to give details of agreement with Russia, saying the country was getting good rates and the benefits would be passed on to the end consumers.
Addressing a press conference here on Tuesday, he said that not disclosing details of commercial terms was part of agreement with Russia.
Malik raised the question that how Pakistan could be forced to give details of terms for purchasing Russian oil when no other country was doing the same.
“We are getting good price”, he said, adding that the end consumers would be the ultimate beneficiaries of import of cheaper Russian crude oil in Chinese currency.
The minister said that the samples were already tested to assess the suitability of Russian oil for processing at local refineries.
“Yes, our refineries are built for processing Arabian crude oil. Old technology of our refineries cannot refine 80-100 per cent of Russian crude. The government has approved a refinery policy. We are holding talks to secure a $10 billion investment from a GCC country. We plan to sign a $10 billion agreement to enable Pakistan to set up new oil refinery,” he said.
After completing the necessary spadework, he said, the first shipment of 100,000 tons of ural oil has reached the country.
“Now, regular import of Russian crude oil will start. We plan to take oil import from Russia to one-third of our total imports,” he said.
Mr Malik said that the government has received a contract from Azerbaijan which was available with the federal cabinet.
Under the contract, he said, Azerbaijan would provide LNG cargo on a monthly basis at a much lower price than in the international market. But it would be up to Pakistan to accept or reject the distress cargo. He said that the incumbent government has signed a Joint Implementation Plan with Turkmenistan. “PTI government has not signed any contract during its four year tenure,” he said.
“Pakistan has invited European countries to set up LNG units”, he said, adding that the country has the potential to become a transit route for gas transportation from Central Asia to Europe.
