(Oil Price)– Pakistan and Russia are discussing a potential cooperation agreement in the oil sector, including in exploration, production, and refining, Pakistani Finance Minister Muhammad Aurangzeb told Russian news agency RIA on Tuesday.
“All of these areas are Russia’s strengths. And we would be very happy if Russia agreed on an agreement in this sector with Pakistan,” the Pakistani official was quoted as saying by RIA.
Earlier this year, Russia’s Energy Minister Sergei Tsivilev said that Russia discussed the potential participation of Russian firms in upgrading a refinery in Pakistan.
Russia and Pakistan have deepened their energy ties in recent years, as Russia seeks new outlets for its oil banned in the West and cash-strapped Pakistan seeks cheaper crude supply and developing its own oil, gas, and minerals industry.
Pakistan started importing Russian crude in 2023, paying in Chinese yuan for the deliveries.
Pakistan’s Petroleum Minister Ali Pervaiz Malik discussed cooperation with Gazprom at an energy forum in Russia in October, a month after Pakistani Prime Minister Shehbaz Sharif and Russian President Vladimir Putin met in Beijing and reaffirmed their commitment to expand energy and trade cooperation.
Malik’s talks with top Russian executives and officials at the St Petersburg International Gas Forum in October focused on investment opportunities for Russia in Pakistan’s minerals and energy sectors, including technology transfers and digital solutions for exploration and production efficiency.
Pakistan and Russia also held a high-level meeting at the end of November, which centered on cooperation in the oil and gas sectors, and opportunities in LNG and LPG supply.
Pakistan, meanwhile, is advancing plans to boost exploration and signed early this month five deals for oil and gas exploration with local private and state-owned companies that will develop three offshore and two onshore blocks.
Last month, the Pakistani government auctioned 40 offshore blocks and got 23 bids from four consortia involving local energy companies and Turkey’s state-owned energy major TPAO.
By Tsvetana Paraskova for Oilprice.com
