Significant progress has been made in the acquisition of cost-effective oilfrom Russia, with Pakistan formalizing a long-term oil purchase agreementwith Moscow. This agreement is structured on a commercial basis, enablinglocal refineries to procure oil directly from Russia and have ittransported to Pakistan via its ports.
The terms of the agreement specify a fixed price of $60 per barrel, and theinitial shipment, carrying 100,000 metric tonnes of crude oil, is scheduledto arrive in Pakistan by December.
Following the implementation of regular oil supply, there will be agovernment-level agreement, with considerations given to the G7 priceceiling for Russian oil.
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Remarkably, Russian crude oil is offered at a rate that is $10 per barrelmore economical compared to the prevailing market rates, even afterfactoring in the removal of the rent premium. During the inaugural trialshipment, Pakistan managed to save an impressive 400 million.