Two Ministers, Two Stances: Controversy emerged over Russian Oil Import

The Russian oil import has sparked controversy due to a divergence of opinion between the petroleum and foreign ministers.

Foreign Minister Bilawal Bhutto-Zardari stated on Thursday that Pakistan was neither seeking nor receiving discounted Russian oil.

However, Petroleum State Minister Musadik Malik stated during a press briefing on Friday that Pakistan was seeking discounted oil imports from Russia.

He added that Russia would also export gasoline and diesel to Pakistan at the lowest possible price.

When asked about the foreign minister’s position on Russian oil imports during a press conference, Malik stated that he could not listen to Bilawal Bhutto’s press conference.Minister claims Russia Ready to Provide Oil at Discounted Rates

However, he was quick to add “Bilawal Bhutto stated that Russia was not supplying Pakistan with oil.

“We lacked something that we should have provided in detail to the foreign office,” Malik said, adding that his ministry will clear up any misunderstandings in this regard with the foreign office.

Then he claimed that the Pakistani envoy in Russia was also involved in oil import negotiations with Russia.

“This is some technical ambiguity, which we will clear up,” he continued.
Regarding crude oil imports from Russia, he stated that the trip to Russia had been a great success.

Two of Russia’s eight crude oil types can be refined in Pakistan, he added, adding that PRL and PARCO have expressed interest in refining Russian crude oil.

He stated that Pakistan will purchase Russian oil at lower prices, hence reducing the country’s energy costs.

Russia will also supply Pakistan with diesel and gasoline, he added, adding that decreasing energy prices will reduce the cost of production, transportation, and storage of all goods, hence lowering commodity prices.

In the second week of January, a delegation of the Inter-Governmental Commission led by the Russian Energy Minister will visit Pakistan to finalise matters pertaining to the import of crude oil, diesel, and gasoline.
The supply of oil from Russia will begin early in the new year, according to the minister.

He added that Azerbaijan is to give cheaper LNG and that negotiations are on with the United Arab Emirates to obtain diesel and gasoline.

Through the Tapi gas pipeline project with Turkmenistan, Pakistan will import an additional 1.3 billion cubic feet of gas each day, he said.

Malik stated that the administration was concentrating on the growth and prosperity of the nation in order to give relief for the people.

He stated that the government is attempting to purchase inexpensive oil and gas, which is the ambition of the prime minister in order to provide for the needy.

He stated that the gas supply situation in October and November was better than the previous year since more gas is being provided in December than in the previous year.

In addition, there would be more gas available in January, he added, adding that annual gas production is declining by 10%.

He stated that an additional shipment from Qatar had been scheduled to mitigate the gas shortage.

In addition, SNGPL has arranged for gas clients to get LPG.
Up to 20,000 tonnes of LPG are being acquired, and a framework deal involving gas with Azerbaijan is anticipated to be signed soon.

There is also the possibility of a government-level arrangement with SOCAR, the largest corporation in Azerbaijan, which will deliver cheaper LNG.
He stated that the Ministry of Petroleum had established a unit to oversee the implementation of energy projects.

Pakistan had also explored obtaining crude oil from Kazakhstan through a pipeline, he claimed. He also ruled out Rekodiq Project-related disagreements.