Local refineries will import oil directly from Russia.
The first cargo will consist of 100,000 metric tons of crude oil.
Pakistan is to receive its first cargo in December.
Pakistan has signed a long-term oil purchase agreement with Russia, making significant progress in buying cheap oil from Russia, Bol News reported.
According to sources from the Ministry of Petroleum, local refineries will buy oil directly from Russia on a contract basis.
In addition, after the regular supply, there will be a government-to-government agreement.
The sources further claim that the first cargo of the commercial agreement with Russia will reach Pakistan in December.
As per the Ministry of Petroleum, the first cargo will consist of 100,000 metric tons of crude oil, and Russia will deliver oil to Pakistan at the port.
On the other hand, the sources said that the price of Russian oil will be $60 per barrel.
In the commercial agreement, the G7 countries ‘price cap for Russian oil was taken into consideration. It is noted that Russian crude oil is $10 cheaper than the normal market rate, even after taking out the rent premium.
The officials of the Ministry of Petroleum further added that in the first test cargo, Pakistan saved four billion dollars.
Pakistan-Russia joint venture to be financed through GIDC: official
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During a meeting of the Senate Standing Committee on Petroleum, held under the chairmanship of Senator Muhammad Abdul Qadir, Petroleum Division secretary Dr Arshad Mahmood said that this joint venture between Russia and Pakistan is the country’s most strategic project.