Petroleum minister, Kuwaiti exploration company discuss expanding energy cooperation

Petroleum Minister Ali Pervaiz Malik on Tuesday met Kuwait Foreign Petroleum Exploration Company (KUFPEC) Vice President for Operations Tariq Ibrahim to discuss expanding cooperation in Pakistan's energy sector, according to state broadcaster PTV.

During the meeting, the two sides discussed opportunities to strengthen collaboration between Pakistan and KUFPEC, particularly in Pakistan's energy sector.

Malik said Kuwait was "a close friend of Pakistan" and noted that the two countries shared "a 50-year partnership in the energy sector." He said the government remained committed to expanding its long-standing energy cooperation with Kuwait.

PTV quoted Vice President Ibrahim as saying KUFPEC was exploring investment opportunities in Pakistan's upstream oil and gas sector.

The petroleum minister also assured the company of the government's support, saying Pakistan would provide "every possible cooperation" and a favourable environment for investment. He added that the country remained committed to facilitating international investors in the energy sector.

The meeting came as Pakistan's fuel supply chain starts showing signs of stress again as policy delays, the closure of the Strait of Hormuz and low stocks have sparked fears of an oil shortage in the country.

Industry officials warned that a combination of critically low petrol stocks, delayed imports, rising international oil prices and unresolved financial issues could push the country towards another supply crisis.

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The warning came at a time when motor gasoline (petrol) inventories have dropped to around 379,442 tonnes, including the local refinery production, which was enough for only 14 days of consumption based on current demand trends. Industry data showed that petrol sales during the first 13 days of July averaged 25,000 tonnes per day, almost 16% higher than the projection and 26% above the same period of last year.

The spike in consumption was linked to expectations of another hike in petroleum prices, prompting both consumers and dealers to ramp up purchases. Industry officials fear that if this trend continues, the available stocks could come under further pressure before fresh cargoes arrive.

While international developments, particularly tensions around the Strait of Hormuz and Bab el-Mandeb, have pushed up global oil prices and freight costs, the petroleum-sector representatives argue that domestic policy issues have compounded the challenge.