Tuesday Jun 06, 2023
The Russian cargo ship is expected to arrive at an Omani port on June 7.
Delays in cargo arrival will not increase shipping costs.
Payment for Russian oil will be made in yuan through the Bank of China.
ISLAMABAD: A Russian cargo ship carrying 100,000 tonnes of crude oil is delayed and is now expected to arrive at Oman's Duqm port on June 7, a senior official told The News on Monday.
The oil will be transported to Pakistan by smaller ships from an Omani port, taking around two weeks to reach Port Qasim in Karachi, the official added. Pakistan initially expected the vessel from Russia to arrive in Oman on May 27-28.
"The vessel, which was loaded with Ural oil in a Russian port on April 21, was delayed for 10 days due to technical reasons," the official said. "It then arrived at the Suez Canal in Egypt on May 17, where it waited in a long line for 12 days to cross the canal."
The vessel is expected to arrive in Duqm on Tuesday after a two-day journey across the Red Sea. The tanker then unloads the oil onto a smaller vessel with a capacity of 50,000 tonnes. The first vessel is expected to arrive at Port Qasim on June 11.
The remaining 50,000 tons of Russian oil will be transported to Port Qasim on June 20. Authorities said they would ensure the safe and smooth arrival of Russian oil. The official said the delay in the arrival of Russian oil was due to logistical problems.
"The delay in the arrival of the cargo will not increase the cost of transportation, because it is already settled with the Russians," he said. "However, if the price of oil falls in the meantime, it will be detrimental to the country."
Pakistan Refinery Limited (PRL) will refine a test cargo of Russian crude by blending it with crude imported from the United Arab Emirates and Saudi Aramco.
The PRL was mandated to submit a test report to the government on the quality, yields and commercial viability of the oil. The test cargo will also help the government assess shipping costs, refining costs and refinery margins.
Pakistan imports 70% of its crude oil, which is refined by PRL, National Refinery Limited, Pak Arab Refinery Limited and Byco Petroleum. The remaining 30% is locally produced and refined by local refineries, including Attock Refinery Limited.
The move comes as Pakistan seeks to diversify its sources of oil imports amid rising global prices. Russia is a major oil producer and has offered the country preferential oil prices. Payment for Russian oil will be made in yuan through the Bank of China.
