Islamabad, December 4, 2024 – Federal Minister for Petroleum, Musadik Malik, clarified on Wednesday that no formal agreement has been reached for the purchase of crude oil from Russia, despite ongoing negotiations. His statement refuted recent media reports suggesting a deal had been finalized.
Addressing the media, Malik explained that attempts to procure oil through a public sector company had not materialized. “There was an idea to import oil by establishing a subsidiary, but that plan could not be completed,” he said, adding that the government aimed to supply refineries with oil at international market rates.
He further disclosed that Pakistan Refinery Limited (PRL) did not place additional orders for crude oil from Russia following the first shipment. This decision was attributed to a surplus of Liquefied Natural Gas (LNG) in the country, reducing the immediate need for further crude imports. Malik emphasized that while talks with Russia are ongoing, no new cargoes are currently being pursued beyond previous arrangements.
“We will continue discussions, but as of now, there are no plans to procure additional oil cargoes,” he stated.
On a related note, the minister revealed that Pakistan has deferred five LNG cargoes from Qatar and is exploring options to avoid ordering additional shipments next year. He highlighted ongoing efforts to deregulate petroleum product prices, aiming to provide immediate relief to consumers through potential price reductions.
Malik also noted a decrease in global LNG prices due to an oversupply in the international market, which could bring further advantages to Pakistan’s domestic energy sector.
