Saudi Arabia to provide oil on deferred payments: petroleum minister

ISLAMABAD: Federal Minister for Petroleum and Natural Resources Ghulam Sarwar Khan confirmed that Pakistan’s intends to take oil from Saudi Arabia on credit for five years.

While speaking in the National Assembly on Tuesday, the federal minister said the authorities in Saudi Arabia have agreed to Pakistan’s request for oil.

The statement came following reports that Pakistan has asked Saudi Arabia for a daily oil supply of of 100,000 to 200,000 barrels on deferred payments for ninety days along with other proposals.

Yesterday, the petroleum minister told the Senate that Saudi Arabia expressed interest in setting up a refinery in Balochistan. He added that talks were under way with the provinces and the parliament would be taken on board soon.

It may be mentioned that a Saudi delegation led by Adviser on Energy Ahmad Hamed Al-Ghamdi is currently visiting Pakistan to invest in power and energy projects.

The Saudi delegation on Monday met with Energy Minister Omar Ayub who briefed about the power production and new hydro power projects in Pakistan. He said there is huge potential of investment in energy sector in Pakistan, and that foreign investors will be provided facilities at every level.

The Saudi delegation assured full cooperation for resolution of the problems in energy sector. They also met with with Adviser on Trade Abdul Razzak Dawood and discussed ways to increase bilateral trade.

The visit is in line with an earlier announcement pertaining to Islamabad’s invitation to Riyadh to invest in CPEC as well as other infrastructure projects countrywide.

The Saudi delegation on Tuesday visited Gwadar and agreed to install the world’s third largest oil refinery in the port city, which will meet the oil needs of Pakistan and China and also supply to Central Asian countries.

Gwadar Port Authority chairman briefed the team about the free economic zone. The delegation also visited the port and desalination plant.

The Kingdom has been invited to invest in an 80,000-acre ‘mega oil city’ in Gwadar. The Saudi delegation showed a keen interest in investment and expressed satisfaction with the security arrangements.

Pakistan has invited Saudi Arabia to become the third partner in the China-Pakistan Economic Corridor.