Pakistan is encouraging its refiners to explore importing crude oil from Libya to diversify its energy supply amid ongoing Middle East tensions. Petroleum Minister Ali Pervaiz Malik met with Libya's Oil and Gas Minister Khalifa Rajab Abdulsadek to discuss strengthening cooperation in the sector.
Pakistan's efforts to secure alternative crude oil supplies from Libya and boost domestic production are crucial for its energy security and economic stability, especially given the elevated costs of fuel imports and the risks posed by Middle East instability to its energy supply chain.
Pakistan is actively seeking to diversify its oil supply sources, with its refiners being encouraged to explore the possibility of importing crude oil from Libya. This initiative comes amid ongoing geopolitical tensions in the Middle East, which threaten traditional supply routes through the Strait of Hormuz and the Red Sea. Petroleum Minister Ali Pervaiz Malik discussed strengthening oil and gas sector cooperation with Libya's Minister of Oil and Gas Khalifa Rajab Abdulsadek on the sidelines of an energy event in Saudi Arabia.
To enhance its energy security, Pakistan also has plans to upgrade its refineries, develop critical infrastructure, and boost domestic oil and gas exploration both offshore and onshore. In line with these efforts, a Turkish seismic vessel is expected to arrive next month to commence data acquisition in the Indus Basin. Furthermore, Pakistan's Oil and Gas Development Company Limited (OGDC) has entered into an agreement with Canada's Synergetic Oil Tools Inc. to implement advanced Passive Energy Tool technology, aiming to optimize and increase production from heavy crude oil fields.
Pakistan has faced record premiums for fuel imports and paid the highest prices for LNG cargoes since 2022 due to disruptions stemming from the Middle East crisis and previous supply shocks. Refiners have been actively inquiring about potential crude oil supplies from various regions, including the U.S., Nigeria, and Central Asia.
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