CNERGY imports Pakistan's first private-sector shipment of discounted Russian crude oil

October 02, 2023 (MLN): Cnergyico PK Limited (PSX: CNERGY) has imported Pakistan's first private-sector shipment of Russian crude oil as the cash-strapped nation takes advantage of Moscow's discounts on its oil exports, as Reuters reported. 

Pakistan has started snapping up crude oil that Russia has discounted after its exports were banned from European markets over Russia's invasion of Ukraine.

Pakistan's first cargo, imported by the government, arrived in June and a second government-to-government shipment is under negotiation, it added.

It had been assumed that private imports would not be commercially viable because, among other things, cargoes have to be split and transferred to smaller ships as Pakistan's ports cannot handle large tankers.

But Cnergyico used its single point mooring, which can accommodate deep-draft tankers, a company spokesman said in response to questions from Reuters. The crude is to be refined at the company's refinery in the southwestern city of Hub.

Processing the 100,000-metric-ton shipment of Urals crude marks an important milestone for the company and for the country as well, said the spokesman.

"It demonstrates the company's capabilities and readiness to refine different types and complexities of crude oil," he added.

The company currently operates two business segments namely Oil Refinery Business and Petroleum Marketing Business.

At the time of writing, the scrip of the company is being traded at Rs3.08, up by 1.32% since the previous close. 

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