ISLAMABAD, Oct 29: Saudi Arabia has agreed to continue the special oil facility to Pakistan for the next few years, an official of the petroleum ministry told this correspondent on Wednesday.

“A broader consent was given by Saudi Crown Prince Abdullah bin Abdul Aziz during his recent visit here to continue the special oil facility to Pakistan over the next few years”, said the official.

However, terms and conditions of the agreement would be finalised by the two countries’ petroleum authorities on an annual basis. “It (the facility) can continue for two more years, three years or perhaps even beyond”, said the official.

He said a Pakistani delegation would be visiting Saudi Arabia next month to discuss the contract’s terms for the next year. A new contract has to be put in place before the current arrangement expires on Dec 31, 2003, he added.

The official said the contract’s value could not be quantified presently because it was not clear as to how long the facility would continue but roughly it would amount to between $500 million and $600 million annually depending on the prevailing oil price.

He said under the facility, Pakistan would get around 50,000 barrels of crude oil per day every year. He dismissed the notion that Pakistan had mentioned any specific amount or number of years for the continuation of the facility in its discussions with the Saudi Crown Prince.

Under the facility, oil imports amounted to Rs39 billion during 2002-03 but for the current year it is projected at Rs31 billion.

Pakistan’s total oil imports amounted to around $3.06 billion during 2002-03, up by around 10 per cent against the figures for the previous year partly because of a reduction in the special oil facility.

Total oil imports (both crude and POL) amounted to around 20 million tonnes. A large chunk of crude oil imports comes from Saudi Arabia, most of the time on a special price and deferred payment basis.

Saudi Arabia provided oil worth a total of $2 billion to Pakistan on deferred payments in 1998 and 1999 following sanctions imposed on Pakistan by the West after it went nuclear in response of detonations of India’s atomic devices.

A major portion of this amount was later converted into a grant and the facility was extended in the subsequent years and continues till to date.