Pakistan Refinery to import Nigerian crude oil for first time

Pakistan Refinery Ltd. (PRL), with a processing capacity of 50,000 barrels per day, is set to import Nigerian crude oil for the first time, in what industry officials describe as a litmus test for the country’s decades-long reliance on Middle Eastern supplies.

According to internal assessments reviewed by industry sources, PRL will import Nigerian Bonny Light crude oil from Vitol in September to evaluate whether it yields better output and is commercially viable. On paper, the working shows the deal is both technically and commercially sound, but the refinery will have to take a long-term view to determine whether the results justify sustained imports, the sources said.

The shipment is expected to consist of about 500,000 barrels of light sweet crude, loaded later this month and arriving in Karachi by the end of September. While the exact price has not been disclosed, industry sources said freight charges will be higher compared with Middle Eastern routes, making it more expensive.

Pakistan’s diesel imports climbed 18.7% year-on-year to 2.037 million metric tons in the year ended June 30, according to the Oil Companies Advisory Committee. Motor gasoline imports rose 16.6% to 5.541 million mt, while crude oil imports were up 10.2% to 9.279 million mt.

The Nigerian cargo follows a similar diversification move earlier this month, when Cynergyico PK Ltd., the country’s largest refiner, sealed a deal for its first shipment of U.S. West Texas Intermediate (WTI) crude with Vitol. Vice Chairman Usama Qureshi told Nukta on Aug. 1 that the 1 million-barrel cargo will arrive in October under a term agreement with Vitol.

The development came after former U.S. President Donald Trump said his administration had concluded a tariff deal with Pakistan but did not provide specifics. He added that the two countries are working to develop oil reserves and are in the process of selecting a company to lead the partnership.

“This is a test cargo under our umbrella term agreement with Vitol, and it will arrive in October,” Qureshi said. “We are evaluating further imports depending on commercial viability.”

Company officials say importing WTI aligns with efforts to strengthen energy security, diversify supply sources, and reduce dependence on Middle Eastern oil. “WTI is cleaner, yields better fuels like gasoline and jet fuel, and requires no blending or plant modifications,” Qureshi said. “It’s ideal for local market needs and is environmentally friendlier.”