PSO to import one million tons of oil from Kuwait annually: deal concluded

The Pakistan State Oil (PSO) and Kuwait Petroleum Corporation (KPC) have concluded negotiations to ink a deal for direct import of one million tons high-sulpur fuel for one year, which would cause annual saving of $3.3 million. Briefing the National Assembly Standing Committee on Petroleum and Natural Resources, PSO Managing Director (MD) Irfan K Qureshi said that it was a remarkable achievement regarding gas supply arrangement with KPC.
Members of committee and chairman Waqas lauded the role of PSO MD who had concluded negotiations successfully for direct import of fuel from KPC. "After signing of agreement PSO will be able to directly import petroleum products from KPC, and no trader will be involved in it," he said, adding that PSO has been pursuing such a deal with KPC for the last three years. He added that PSO would seek extension in the proposed arrangement for fuel supply with KPC in future.
Director General (DG) Oil Sabir said: "We have historical relations with KPC regarding fuel supply that is most transparent and competitive process. MD PSO has done a good job in this regard." According to sources, the proposed arrangement will continue on existing terms and conditions on 30 days 'deferred payment, and PSO will pay a premium of $15.50 per ton on the market price. The company earlier paid $19 per ton premium. "PSO's sole reason to negotiate with KPC for such a contract is to have an economical and reliable source of supply and our end customers--power sector--benefits from uninterrupted and economical furnace oil," sources added.
The NA body was informed that appointment of Colonel (Retd) Fazal Abbas in security department was legal as he was appointed against advertisement. Another official, Javed Zubari, had working experience of 30 years of sale and marketing as well as diesel and engine oil. He was required to complete revival plan of company and left company in December 31, 2010 after revival plan was completed.
The committee expressed serious concern over the appointment of directors on PSO board on recommendation of Petroleum Minister. Petroleum Ministry was directed to submit detailed process of nomination of directors. The committee also expressed resentment over the appointment of one board member from Multan to represent Punjab, saying that it was a move to create confrontation between the province and the Centre.