Pakistan State Oil (PSO) has recently signed a Contract of Affreightment (CoA) with the Pakistan National Corporation (PNSC) to transport furnace oil from foreign ports to Pakistan’s shores.
“Already this CoA is bearing fruit and expected savings in one year are estimated to be approximately USD 25 million, which shall translate into savings of USD 125 million in five years time span,” said a PSO spokesperson in a statement.
She said that the PSO, being the nation’s largest energy company, had already implemented the decisions of the government in letter and spirit.
“The PSO is proud to be the first national company to start bringing in imported POL products through the Pakistan National Shipping Corporation (PNSC).”
This has been done in light of the directives of the Economic Coordination Committee (ECC), which clearly state that all government organizations should designate the national shipping line i.e. PNSC as their shipping partner of choice, she added.
The spokesperson said that from March 2013, the company would start importing Motor Gasoline through PNSC on FOB basis, saving another USD 10 million annually and in next five years estimated savings due to this arrangement were expected to be USD 50 million.
The PSO’s partnership with the PNSC shall result in total savings of approximately USD 175 million over a time period of five years, she said.
She said this partnership between two national companies would not only save precious foreign exchange as outlined above, but would also help in creating employment opportunities in the oil shipping business.
“Committed to providing quality products and customer services, the PSO, the national energy giant, remains committed to providing the best for the public at large,” she observed.