Federal Minister for Petroleum Musadik Malik denied any agreement with Russia for the purchase of crude oil, dismissing media reports claiming otherwise.
Speaking to journalists in Islamabad, the minister clarified that no deal has been finalised for crude oil procurement from Russia, adding that while earlier efforts aimed to purchase oil through a public sector company, the initiative did not materialise after the first shipment.
Discussions with Russia regarding crude oil imports remain ongoing, the minister shared.
However, no new cargo agreements beyond previous arrangements have been signed. He revealed that Pakistan Refinery Limited (PRL) did not order additional oil from Russia following the initial cargo.
"Russia has shown interest in offshore oil and gas exploration in Pakistan. Any new agreement for crude oil procurement will be made keeping national interest in mind," he said.
Explaining complications in Russian oil transactions, Malik said the previous deal involved a Chinese bank and included shipping insurance and reinsurance. Due to port limitations, the first shipment was split into smaller cargoes in Oman.
"We will need to establish a new structure for future deals with Russia," he added.
The minister also noted that Pakistan currently has a surplus of liquefied natural gas (LNG) and is not seeking new LNG cargoes. He said the federal government has deferred an agreement to buy LNG from Qatar for a year and will now receive the contracted LNG cargoes in 2026 instead of 2025.
"We have deferred five LNG shipments from Qatar and are negotiating to avoid additional shipments next year as well," Malik said.
Malik announced that a framework for deregulating petroleum product prices is being finalised, which aims to transfer cost reductions directly to consumers. Prime Minister Shehbaz Sharif's approval of the framework was awaited.
The minister expressed hopes of securing concessions on the Iran gas pipeline from the US administration. He also highlighted plans for the digitalisation of petrol pumps to curb smuggling and improve transparency.
"While digitalisation has been implemented up to refineries and depots, it has not yet reached pumps. No decision has been made regarding cost-sharing for this initiative," Malik said.
Sharing updates on Saudi investments in Pakistan's energy and mining sectors, he confirmed a $1.7 billion agreement between PRL and a Saudi company, with feasibility for the Greenfield Refinery Project expected by December 24. The project could attract investments worth $810 billion.
He further disclosed that recent engagements with Saudi Arabia resulted in 34 agreements totalling $2.8 billion.
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