Pakistan State Oil (PSO) is said to have decided to blacklist a UAE-based Fal Oil Company''s local agent and confiscate its $16 million guarantee after two of its fuel oil cargoes were rejected for failing to match the government''s specifications, Business Recorder has learnt reliably.
"PSO has begun documenting violations by the local agent in an attempt to blacklist him," sources in Petroleum Ministry said. On Monday last, PSO rejected a ship carrying 50,000 tons of Light Sulphur Fuel Oil (LSFO) worth $30 million by a UAE-based Fal Oil Company after laboratory tests confirmed high sulphur content in the oil.
In addition to Hydrocarbon Development Institute of Pakistan (HDIP), PSO administration had the LSFO tested from its lab. PSO management is set to take a bold decision to blacklist this agent who has reportedly very close contacts in political circles.
In February 2010, PSO had rejected Fal Oil ship carrying fuel oil cargo worth $30 million. This was for the first time in the company''s history that such a decision was taken despite strong pressure from relevant quarters. The ship was carrying 51,000 metric tons of LSFO for the Kot Addu Power Company (Kapco). Following tests at the PSO lab and HDIP, sulphur content was found to have exceeded the one mutually agreed in the contract.
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