Pakistan set to get its first US oil shipment after Trump's "massive" oil reserves claims
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
US-Pakistan deal
Pakistan's oil imports
Tired of too many ads?
Remove Ads
Pakistan's largest refiner, Cnergyico, will import 1 million barrels of U.S. crude oil from Vitol in October, marking the country's first-ever purchase of American crude, under a landmark trade deal, Vice Chairman Usama Qureshi told Reuters on Friday.The shipment of West Texas Intermediate (WTI) light crude will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October, Qureshi 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,' he said, adding that the shipment is not intended for resale.The deal follows months of negotiations that began in April, after U.S. President Donald Trump threatened to impose a 29% tariff on imports from Pakistan. Qureshi said Pakistan's finance and petroleum ministries had since encouraged local refineries to explore U.S. crude imports.The announcement comes a day after Trump said the US had finalized a trade agreement with Pakistan and would also work with Islamabad to develop what he called the country's 'massive oil reserves.' It remains unclear which reserves the president was referring to, as Pakistan currently relies on oil imports—mostly from the Middle East—to meet its domestic demand.Pakistan welcomed the US trade deal, saying it would lead to lower tariffs and greater investment, though it did not specify any changes in duty structures.A longtime Chinese ally, Pakistan has sought closer ties with the Trump administration following the tariff threat. It credited US diplomatic efforts for de-escalating recent tensions with India and even nominated Trump for the Nobel Peace Prize.Oil is Pakistan's largest import item, amounting to $11.3 billion in the year ended June 30, 2025 - nearly 20% of the total import bill. The US crude import deal is expected to help diversify supply sources and reduce dependence on Gulf producers, who currently meet nearly all of Pakistan's oil needs.'Gross refining margin is on par with Gulf grades, and no blending or refinery tweaks are required,' said Qureshi.Currently, the refiner is operating at a run rate of 30-35% due to subdued local demand. 'We expect run rates to rise as domestic demand strengthens and local production is prioritised over imported fuels,' Qureshi said.So, where are Pakistan's 'Massive oil reserves'?President Trump's remark about Pakistan's 'massive oil reserves' is difficult to substantiate based on known geological data. As of 2016, Pakistan had proven oil reserves of 353.5 million barrels, according to the US Energy Information Administration—ranking 52nd globally and accounting for just 0.021% of total world reserves. At current consumption levels of roughly 556,000 barrels per day, these reserves would last under two years without imports or new discoveries.Pakistan's daily oil production stands at around 88,000 barrels, far below national demand. The country imports approximately 85% of its crude requirements.Trump's comment may have been influenced by early-stage geological surveys in Pakistan's Offshore Indus Basin. Seismic studies conducted over the last three years have identified promising hydrocarbon formations under the Arabian Sea. Some speculative estimates suggest the offshore area could house reserves rivalling those of Venezuela, Saudi Arabia, and Iran.However, these claims remain unproven. No commercial drilling has taken place, and the formations have yet to be classified as reserves in the technical sense—meaning they are not yet confirmed to be commercially viable, recoverable, or under development plans.In early 2024, Pakistan's Ministry of Energy announced preliminary results from its multi-year offshore seismic survey, suggesting the presence of significant hydrocarbon potential. But technical experts, including former OGRA member Muhammad Arif and officials from state-run firms like OGDCL, cautioned that the findings were based only on seismic interpretations.The geological data, they said, pointed to promising traps and thick source rocks along tectonically active zones such as the Murray Ridge. But until exploratory drilling confirms the presence, quality, and extractability of oil or gas, these cannot be classified as reserves.Developing offshore assets would require major investment. Experts estimate $5 billion would be needed over four to five years to confirm and begin development of the sites. Additional spending would be required to build supporting infrastructure like pipelines, ports, and refining capacity.Pakistan's economic constraints including $126 billion in external debt and a $17.5 billion energy import bill in 2023—pose significant hurdles to any large-scale energy development.Moreover, domestic refining capacity remains limited. Pakistan's refineries can collectively process around 450,000 barrels per day, already under pressure from domestic consumption.With inputs from Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
3 minutes ago
- Mint
For Indian defence firms, a special US deal is on the way
India and the US are working on a landmark deal that would open up each country's defence purchase market to the other, marking a significant step forward in their strategic relationship, two people aware of the development said. The Reciprocal Defence Procurement Agreement (RDPA), if finalized, would give Indian companies direct access to the world's largest defence market worth $850 billion, and enable their American counterparts to tap into India's manufacturing and technology sector. This would also make India the 29th signatory to the US framework, and the only Asian signatory after Japan. An official announcement is likely within a year, but it would also depend on factors including the ongoing trade negotiations with the US, the people cited above said on the condition of anonymity. 'In light of the current geopolitical environment, especially after Operation Sindoor, India sped up talks with the US for a full-fledged RDPA. The rationale has been that while there have been many interim agreements opening up the two markets for strategic technologies, most of them still require approvals from the US Department of Defence, as well as other paperwork under foreign affairs, export and import controls, and so on. Both nations recognize the need for an RDPA, and talks are now closing in at the final stage," one of the two people said. Smoother process An RDPA will enable Indian makers of defence components and technologies such as spy satellites to sell directly to the US. Companies can choose to partner closely with US entities, without needing express approvals of the two governments, currently a cumbersome affair. Talks for an RDPA happen in the backdrop of recent American tariffs on Indian goods, and ongoing talks for a bilateral trade agreement. Experts said that with the RDPA in place, India's defence firms, which exported a record ₹23,622 crore of goods in FY25, are likely to see a major fillip. 'For India, even with the Security of Supply Arrangement (SOSA) signed in August last year, the current agreements and bureaucratic deals have kept multiple roadblocks in place. For the US, India has so far been a Soviet-heavy defence market—getting access to it will be key as in the current geopolitics, India is a crucial ally for the US in the East," said Vivek Mishra, deputy director for strategic studies at global think-tank, Observer Research Foundation. 'Think of this as a deal that would give India a massive defence manufacturing market from the US to cater to, via partnerships signed under the ambit of the RDPA. Doing so is crucial for both countries right now, and has for long been the logical step forward for the ties of the two nations," Mishra added. Queries sent to the holding companies of Kalyani Strategic Systems and Alpha Design Technologies, as well as the Mahindra Group and Indian-American space-tech startup Pixxel remained unanswered. An email sent to the Ministry of Defence also did not receive responses. Explaining how the deal would work, the second official cited above said, 'The current International Traffic in Arms Regulations (ITAR) rules are a Department of State affair in the US, which seeks to control access of US technology in foreign nations. The Strategic Trade Authorization, meanwhile, comes under the Department of Commerce—and establishes export control to prevent access of technology outside of the US. RDPA, under the US Department of Defence, will primarily establish the ability for Indian defence entities to view and apply for US defence tenders, and vice-versa." Building on ITAR The deal will build on existing Indo-US agreements in defence and technology, such as the joint initiatives announced by prime minister Narendra Modi and US president Donald Trump, during the former's US visit in February. These include a review of the existing ITAR, which industry experts said is still a bureaucratic and restrictive process. 'The leaders announced plans to sign this year a new ten-year Framework for the US-India major defence partnership in the 21st century… (and) determined that the US would expand defence sales and co-production with India to strengthen interoperability and defence industrial cooperation," a statement by the Ministry of External Affairs said on 13 February. Bharat Forge's Kalyani Strategic Systems, the Adani group's Alpha Design Technologies, Centum Electronics and others currently rely on ITAR clearances to supply defence technologies to US entities. Some examples include Kalyani's artillery cannons deal with AM Design, and Mahindra Group's partnership with Anduril for autonomous marine systems, both announced in February this year. "This would be a massive push for the Indian defence market, which is currently worth around $80 billion. The US, meanwhile, has an $850-billion defence market. India's aspiration is to scale up its defence exports to $6 billion by 2030. Even if Indian private firms can capture 1% of the US market, this represents a massive business opportunity for them," the second official added. ORF's Mishra also said that for India, the US is the biggest target market. "We do have a bilateral defence agreement with France, but not with the UK. This means that the US is a one-of-a-kind target for Indian private firms, and an RDPA will majorly boost the domestic market," he added. Streamlining The lack of a streamlined process has pushed startups, such as Bengaluru-born Pixxel and Digantara, to set up independent US entities to pursue defence contracts with the National Aeronautics and Space Administration (Nasa) and the Defense Advanced Research Projects Agency (Darpa) in the US. The process, however, has meant that defence supply deals remain far and few in nature. 'The RDP Agreement would assist the Indian companies to develop internationally acceptable standards and certifications in order to access the massive US defence market, which will in turn also increase their competitiveness and acceptability in other defence markets," said Shailender Arya, senior advisor, defence and national security at global policy advocacy firm, The Asia Group.
Economic Times
3 minutes ago
- Economic Times
US restricts sports visas for transgender women as Trump government's crackdown on immigration continues; check key policy update here
The USCIS has updated its immigration policy, restricting visa eligibility for transgender women athletes seeking to compete in women's sports. This decision aligns with the Trump administration's efforts to regulate transgender participation in athletics, considering male athletes competing against women as a negative factor in visa petitions. Tired of too many ads? Remove Ads What are the new rules in the latest immigration policy update The U.S. Citizenship and Immigration Services (USCIS) announced on Monday (August 4, 2025) that it has updated its immigration policy to restrict visa eligibility for transgender women seeking to compete in women's sports. The latest development comes in alignment with the US President Donald Trump's administration's broader efforts to regulate transgender participation in athletics and follows similar policies enacted at the state level across the the policy update, USCIS will consider "the fact that a male athlete has been competing against women" as a negative factor when evaluating visa petitions in categories such as O-1A for extraordinary ability, EB-1 and EB-2 green cards for highly skilled workers, and national interest waivers."USCIS is closing the loophole for foreign male athletes whose only chance at winning elite sports is to change their gender identity and leverage their biological advantages against women," said USCIS spokesperson Matthew Tragesser, as quoted by news agency Reuters. "It's a matter of safety, fairness, respect, and truth that only female athletes receive a visa to come to the U.S. to participate in women's sports."The United States Olympic & Paralympic Committee updated its policy in July 2025 to align with an executive order signed earlier this year by Trump barring transgender women from competing in women's signed the "Keeping Men Out of Women's Sports" order in February 2025, a directive that supporters said would restore fairness, but critics argue infringes on the rights of a tiny minority of athletes.
Time of India
16 minutes ago
- Time of India
Russiagate 'hoax': Attorney General Pam Bondi orders grand jury probe of Obama officials- Report
United States attorney general Pam Bondi directed her staff on Monday to proceed with the criminal referral from director of national intelligence Tulsi Gabbard concerning the alleged Russia-Trump conspiracy, Fox News Digital reported adding that the department of Justice is initiating a grand jury investigation into this matter. According to a letter reviewed by Fox News Digital and information from a source close to the investigation, Bondi has authorised an unnamed federal prosecutor to begin legal proceedings. The prosecutor will present evidence to a grand jury, potentially leading to an indictment. while declining to comment specifically on the investigation, a DOJ spokesperson confirmed that Bondi is treating Gabbard's referral with utmost importance. The spokesperson indicated that Bondi identified significant reasons for concern and the necessity for further action. The DOJ acknowledged receiving Gabbard's criminal referral two weeks prior. The referral included documentation regarding the Intelligence Community's alleged suppression of evidence showing that Russian and criminal activities did not affect the 2016 presidential election through cyber-attacks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo No charges have been filed at this point against any potential defendants. This development follows Gabbard's July declassification of intelligence, which provided fresh perspectives on the Obama administration's alleged assessment that Russia aimed to assist Trump in the 2016 election. According to Gabbard's press briefing, the Obama administration allegedly promoted an artificial narrative about Russian interference favouring Trump's victory. The declassified materials included records of Obama requesting his deputies to prepare a December 2016 intelligence assessment regarding Moscow's electoral influence methods. The assessment concluded that whilst Russian actions aimed to create distrust in democratic processes, they did not affect the election outcome. Gabbard has suggested that Obama and his national security officials established the foundation for allegations of Trump-Russia collusion. The scope and potential charges of the grand jury investigation remain uncertain, particularly given that statutes of limitations have expired for many activities from nearly ten years ago. Former Obama intelligence officials, including John Brennan, James Clapper and James Comey, have faced scrutiny regarding their alleged roles in developing intelligence that challenged Trump's 2016 victory.
