Pakistan State Oil (PSO) and Pakistan National Shipping Corporation (PNSC), the nation's flagship oil marketing and shipping companies respectively, have solidified their partnership by signing a contract of affreightment (COA) on Friday at the PNSC building.
The accord was signed between Mr. Naeem Yahya Mir, CEO & MD-PSO and Vice Admiral Saleem Ahmed Meenai, Chairman-PNSC. Also present at the occasion were PSO's Mr. Naved Alam Zubairi, SGM Projects; Dr. Nazir A. Zaidi, SGM-International Marketing; along with PNSC's Executive Directors Brig. Rashid Siddiqi, Capt. Aftabuddin Siddiqi, Imtiaz Cassum Agboatwala, Cdre. Syed Muhammad Obaidullah and Zaheer Babar Qureshi. The agreement which is valid for one year and renewable on an annual basis will enable PSO to transport upto 3 million metric tonnes of Furnace Oil via PNSC vessels from Middle East to Pakistan's shores. A successful test shipment of 71,500 MTs of Furnace Oil has already been brought into Pakistan through a PNSC vessel.
Through this agreement, the biggest national oil marketing company shall minimize dependence on foreign supply lines and shall also reduce its transportation costs by paying in Pak Rupees translating into savings worth Rs. 2.5 billion per annum to the national exchequer. This agreement shall also strengthen the flagship carrier's business and will help them further consolidate their fleet of vessels. Additionally, this arrangement will have a positive impact on the national economy by increasing employment opportunities for sailors and shall improve the skill sets of the workforce in the oil shipping business.
Speaking at the occasion, both the CEO & MD-PSO and Chairman-PNSC stated that this was a historical day, as it marked the first occasion that such a mutually beneficial agreement had been formalized between two significant national companies. They also remarked that through this arrangement, Pakistan's reliance on domestic sources shall be increased, resulting in savings of precious foreign reserves as well as enhancement in operating efficiency.