Pakistan Buys First U.S. Oil Cargo After Trade Deal
Pakistani refiner Cnergyico will import Pakistan’s first U.S. crude oil cargo in October following the trade and energy cooperation deal the two countries signed earlier this week.
Cnergyico will import on October 1 million barrels of American crude via top commodity trader Vitol, Usama Qureshi, vice chairman of the biggest refiner in oil-import-dependent Pakistan, told Reuters on Friday.
The cargo of West Texas Intermediate (WTI) crude is set to load from Houston in August and arrive in Pakistan in late October, the executive said.
“This is a test spot cargo under our umbrella term agreement with Vitol. If it is commercially viable and available, we could import at least one cargo per month,” Qureshi added.
The cargo will not be for resale and will help diversify Pakistan’s predominantly Middle Eastern supply of crude oil.
This first U.S. crude purchase by Pakistan follows the trade deal announced earlier this week.
Following months of negotiations, the United States and Pakistan this week signed a trade deal that will involve the joint development of Pakistan’s oil resources.
“We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” U.S. President Donald Trump said on social media.
“We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!” Trump also said on Truth Social.
Pakistan is an importer of energy, but it may hold substantial reserves of oil and gas in shale formations.
This year, Pakistan also updated its oil and gas reserves estimate, revising the oil reserves part upwards by 23% from a year earlier, to 238 million barrels. The revision came on the back of seven fields where discoveries were made in the period.
By Tsvetana Paraskova for Oilprice.com
Pakistan Strikes Oil in Sindh Province
Pakistan’s leading exploration and production firm, Oil & Gas Development Company Limited (OGDCL), on Friday announced an oil discovery in an exploration license in the southeastern province of Sindh.
OGDCL, the operator of the Tando Allah Yar (TAY) exploration license, found oil at exploratory well Chakar–1, where tests showed that the well flowed 275 barrels of oil per day.
A second drill stem test (DST) is now being conducted to further assess its hydrocarbon potential.
The discovery at Chakar–1 marks the 13th discovery in the TAY exploration license, and “reflects the joint venture’s sustained efforts to assess and unlock the hydrocarbon potential of the block,” OGDCL said in a statement.
The results to date reinforce confidence that the area has geological potential and support ongoing exploration and appraisal efforts to further delineate its resource base.
The new oil discovery comes as Pakistan is looking to develop its domestic resources to reduce dependence on imported oil and gas.
Earlier this year, Pakistan recorded the first substantial increase in its domestic oil reserves since 2020, with new discoveries and higher production leading to a 23% annual increase in reserves to 238 million barrels as of December 2024.
The key fields contributing to the increase include Pasakhi/Pasakhi North East, Rajian, Kunar, Sono, Thora, Jhandial, and Lashari Centre, according to a report by Arif Habib Limited cited by Pakistani media.
Natural gas reserves in Pakistan remained relatively flat last year compared to the gas reserve estimate for 2023.
In recent weeks, Pakistan has signed cooperation agreements with Turkey and the United States to develop its resources.
Turkish energy firms will explore for oil and gas offshore Pakistan under agreements with local companies, Turkish Foreign Minister Hakan Fidan said last month.
This week, the United States and Pakistan signed a trade deal that will involve the joint development of Pakistan’s oil resources.
By Tsvetana Paraskova for Oilprice.com
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