MOSCOW: Federal Minister for Petroleum Musadik Masood Malik clarified on Wednesday that no agreement has been finalized regarding the purchase of crude oil from Russia, despite ongoing discussions.
The minister addressed recent media reports claiming that an agreement had been reached, stating that while talks have taken place, no formal arrangement has been made. He explained that efforts to procure oil through a public sector company were attempted but did not materialize.
Malik emphasized that the government is committed to providing oil to refineries at international market prices. He acknowledged that there was an idea to import oil through a subsidiary, but the plan could not be implemented. He also noted that after receiving the first cargo, Pakistan Refinery Limited (PRL) did not place further orders for Russian crude oil due to an existing surplus of Liquefied Natural Gas (LNG). Consequently, no new oil shipments are being pursued from any source at present.
The petroleum minister confirmed that discussions with Russia are ongoing but reiterated that no additional crude oil cargoes have been ordered under any new agreements. He stated, “We will continue talks, but as of now, no new cargoes will be taken apart from the previous agreements.”
Regarding LNG, Malik revealed that Pakistan had postponed five LNG cargoes from Qatar and is in discussions to avoid ordering additional cargoes next year. He explained that global LNG prices have decreased due to an oversupply in the international market, which could lead to benefits for the domestic energy market.
Additionally, Malik highlighted government efforts to deregulate petroleum product prices, which he said would lead to immediate price reductions for consumers.
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