PRL to submit report on Russian oil URAL in two weeks

ISLAMABAD: Pakistan Refinery Limited (PRL) may submit its report to the government in two weeks about the quality, yields, and commercial viability of the Russian crude oil URAL, which is heavier in nature, a senior official of the Petroleum Division told The News.

The PRL, which is in the process of refining Russian crude will submit to the petroleum division about the yields (production of petrol, diesel, FO, and Light Diesel Oil, in terms of percentages), its quality, and more importantly how commercially viable for Pakistan’s economy after refining cost and margins of the refinery has been worked out.”

The report will help the government’s relevant functionaries take the decision to either go for a GtG import deal with Russia or not.

The local refineries currently produce the average production of Motor Spirit (Petrol) at 25-30 percent and furnace oil at 45 percent by using the crude of Saudi Aramco and ADNOC.

However, the official said that half of the 100,000 Russian crude will be exported in the form of furnace oil at 75 percent of the crude cost with a 25 percent loss, as out of URAL crude which is heavier crude in nature, 50 percent furnace oil will be produced.

“Pakistan refineries that use crude mostly from Saudi Aramco and ADNOC are already facing an ullage of furnace oil in their storages and they export the furnace oil with a 25 percent loss.”

The deep conversion refineries in Dubai make finished products out of the furnace oil that Pakistan refineries have exported at 25 percent.

The official said Pakistan Refinery Limited (PRL) which is an old refinery is in the process of processing the Russian crude.

Even though the Russian heavy crude is discounted fuel, PRL will produce out of it 50 percent furnace oil, meaning that the ship containing 50,000 tons will be exported in the form of furnace oil as its utility in Pakistan is not up to the mark. Last Sunday, PRL just exported 25000 furnace oil out of the crude that it normally uses from Saudi Aramco and ADNOC.

“However, because of the gas crisis in the country, and the increase in temperature, the demand of electricity has increased and the authorities concerned have started using the local furnace oil for power generation too.”

The official disclosed that PRL may take two months’ time to refine 100,000 tons of Russian crude as it first blends 25-30 percent of Russian URAL with 70-75 percent of crude from Saudi Aramco and then it refines the blended crude.

The Petroleum Division official said the first cargo carrying 45,000 tons of Russian crude arrived at Karachi Port Trust on June 11 and now the same cargo with 55,000 tons will arrive again on June 29 which was earlier scheduled to arrive on June 20.

The arrival of remaining Russian crude has been readjusted because of the storage constraints. And on top of it, the official said a vessel containing 70,000 crude oil from Saudi Aramco is due on June 25 for Pakistan Refinery Limited.

The main ship that sailed from Russia with 100,000 tons of URAL crude arrived in Oman on June 7. From there small ship had been arranged to transport the crude in two rounds.