SO again rejects 50,000 tons of LSFO cargo: high sulphur content found

ISLAMABAD  (December 30, 2010) : Pakistan State Oil (PSO) has once again rejected a cargo of 50,000 tons Light Sulphur Fuel Oil (LSFO) worth $30 million by UAE-based Fal Oil Company on Monday last after a high sulphur content was found in fuel oil. This is the second shipment carrying fuel oil with higher sulphur content, which the PSO management has rejected.

Sources said that PSO administration had also got LSFO tested from its lab in addition to Hydrocarbon Development Institute of Pakistan (HDIP) lab. After tests, LSFO was said to have contained higher sulphur content. “PSO has informed the local agent Irfan Puri to take back a ship carrying 50,000 tons fuel oil and provide product having normal sulphur content,” sources maintained.

Sources in Petroleum Ministry said that PSO management was taking bold decisions in the country’ interest. But the question remains unanswered as to why local agent of Fal Oil, Irfan Puri has not been blacklisted despite his shipments have been rejected two times. According to sources Irfan Puri had close contacts in political circles and therefore his firm had not been blacklisted despite providing shipments having higher sulphur content.

In February 2010, PSO had rejected Fal Oil ship carrying fuel oil cargo worth $30 million 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). After tests at the PSO lab and at the HDIP, the sulphur range was found to be exceeding the one fixed in the contract – Brecorder