Daily Times

ISLAMABAD: Pakistan will import around 32.7 Million Barrels (MBL) of crude oil, during the year 2022, under an agreement signed with the Saudi Fund for Development (SFD) to meet its needs of petroleum products on deferred payment.

“The Pak-Arab Refinery Company Limited (PARCO) and National Refinery Limited (NRL) are planning to import 16.89 and 15.81 million barrels of oil in the year 2022 respectively,” according to an official document available with APP.

As per the agreement, the crude oil worth $100 million per month for one year could be imported on deferred payment.

“The price will be as per existing long-term agreements/contracts between Saudi Aramco, PARCO, and NRL,” it added.

The SFD programme is operative since March 7, 2022, and accordingly, the procurement of oil has commenced.

“The facility will be available for a 12 months period which may be extended for 1 year upon the consent of the parties. Repayment of the withdrawn amounts plus the margin at the rate of 3.8% shall be made in one annual instalment in US$.”

Meanwhile, a senior official privy to petroleum sector developments told APP that the government had given the Exploration and Production companies, operating in Pakistan, a target to produce around 29 MBL crude oil during the current fiscal year.

The companies had produced 27 MBL of oil in  2020-21, he added.