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Pakistani company clinches long-term oil supplies contract with Russia — Express Tribune

As the publication wrote, "PRL will purchase crude oil from Russia according to commercial terms, as agreed from time to time, without violating the international commitments of Pakistan and the international framework governing such transactions"

ISLAMABAD, October 19. /TASS/. Pakistan Refining Company (PRL) has entered into a long-term contract for the import of oil from Russia, the Express Tribune reported.

According to the agreements, the details of which have not been disclosed, the first shipment of Russian oil will be delivered to Pakistan in December.

As the publication wrote, "PRL will purchase crude oil from Russia according to commercial terms, as agreed from time to time, without violating the international commitments of Pakistan and the international framework governing such transactions."

Earlier, PRL "has already imported 100,000 tons of Russian Urals crude and processed it successfully," the newspaper says. In addition to that, the Pakistani company inked an agreement with the United Energy Group (UEG) of China according to which the Chinese firm will invest $1.5 billion in the expansion of PRL’s production capacity and upgrade of the oil refinery in Karachi.

Previously, the Pakistani government allowed companies to enter into direct commercial contracts with Russian oil exporters. According to the newspaper, this decision was caused by the protracted process of concluding a long-term intergovernmental agreement between Pakistan and Russia on the import of oil (G2G) and bilateral agreements on the creation of a special purpose vehicle (SPV) for the import of Russian hydrocarbons.

According to the Express Tribune, Pakistan previously relied exclusively on oil supplies from the Middle East. Imports of Russian oil open the way for diversification of energy resources, the publication notes.

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