PRL to present detailed report on Russian oil next month

Picture source - Reuters
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Pakistan Refinery Limited (PRL) is set to submit a report to the government in two weeks regarding the quality, yields, and commercial viability of the heavier Russian crude oil URAL, according to local media reports, which cited a senior official from the Petroleum Division.

After determining the refinery’s margins and refining costs, the PRL, which is currently processing Russian crude, will submit a report to the Petroleum Division detailing the yields (production of petrol, diesel, FO, and light diesel oil, expressed as percentages), quality, and — more importantly — its viability for Pakistan’s economy.

The report will assist the appropriate government officials in determining whether to pursue a GtG import agreement with Russia.

Using crude from Saudi Aramco and ADNOC, the local refineries currently produce an average of motor spirit (petrol) at 25–30% and furnace oil at 45%.

However, because URAL crude is heavier crude, and 50% of boiler oil will be produced, the official stated that half of the 100,000 tons of Russian crude will be sold as boiler oil at 75% of the crude cost with a 25% loss.

There is already an oversupply of furnace oil in Pakistan refineries, which mostly import their crude from Saudi Aramco and ADNOC, and they sell the furnace oil at a 25% loss.

Furnace oil that Pakistani refineries have exported at a rate of 25% is converted into finished goods in deep conversion refineries in Dubai.

The old refinery PRL, according to the official, is processing the Russian crude.

The ship with 50,000 tons will be sent as furnace oil because the heavy Russian crude’s utility in Pakistan is insufficient, even if PRL would generate 50% furnace oil from it even though it is a discounted fuel.

Out of the petroleum that it typically purchases from Saudi Aramco and ADNOC, PRL just exported 25,000 barrels of furnace oil last Sunday.

However, due to the nation’s gas shortage and the temperature rise, there has been a greater need for electricity, and the relevant authorities have begun using local furnace oil for power generation as well.

According to a representative of the Petroleum Division, on June 11 the first shipment, containing 45,000 tons of Russian oil, landed at Karachi Port Trust. The identical shipment, which now weighs 55,000 tons and was originally due to arrive on June 20, will now arrive on June 29.

Due to storage issues, the arrival of any leftover Russian crude has been revised. A vessel carrying 70,000 tons of crude oil from Saudi Aramco is scheduled to arrive at Pakistan Refinery Limited on June 25, according to the official.

On June 7, the major ship carrying 100,000 tons of URAL oil from Russia landed in Oman. The oil was to be transported there in two rounds by a small ship.