ISLAMABAD: Kuwait agreed on Tuesday to “explore new opportunities” around building strategic storage in Pakistan’s petroleum sector, a statement by the Petroleum Division said, adding that the initiative could result in mutual benefit for both sides.

The assurance came during a meeting between petroleum Minister Ali Pervaiz Malik and Kuwait’s ambassador to Pakistan, Nassar Abdulrahman Jasser Almutairi, in Islamabad.

“Both sides discussed prospects for enhanced cooperation in the petroleum and energy sectors, especially refining, and agreed to explore new opportunities around building strategic storages in Pakistan that could bring mutual benefit to Pakistan and Kuwait”, the statement said.

It added that the meeting focused on regional developments and energy cooperation.

The two sides also agreed to further strengthen bilateral relations and expand collaboration in areas of common interest, it said.

For his part, the petroleum minister expressed gratitude to Kuwait’s government for its “timely facilitation and support in ensuring the safe dispatch of vessel Khairpur, which reached Pakistan carrying diesel supplies during a challenging period”.

He highlighted that the vessel transported approximately 45,000 tonnes of diesel and 10,000 tonnes of jet fuel from Kuwait to Pakistan under special approvals, following disruptions caused by the closure of the Strait of Hormuz.

He said with concerted efforts of the two governments, the Khairpur vessel safely completed its journey and reached Pakistan. This would ensure the continuity of fuel supply and support the fulfilment of national energy needs, the statement quoted him as saying.

The Strait of Hormuz used to be the passageway for one-fifth of the world’s oil and gas supply before US-Israeli strikes on Iran in late February set off a conflict that has widened into a regional crisis. Meanwhile, the disruption of traffic in Hormuz has resulted in a global fuel crunch, affecting countries across the world, including Pakistan.

For its part, Islamabad has been leading the efforts for de-escalation between the US and Iran.

During his meeting with the Kuwaiti envoy, Minister Malik said Pakistan remained committed to peace and stability, the Petroleum Division’s statement said, adding that he highlighted that repercussions of the ongoing conflict were being felt not only across the region but beyond it as well.

Ambassador Almutairi appreciated Pakistan’s peace efforts and stated that Kuwait “encourages its brothers in Pakistan to continue their constructive role for peace in the region”, the statement said.

It further quoted him as saying that Pakistan had proved itself through its “responsible stance” and its status had “elevated” in the eyes of the international community.

Pakistan imports more than 60 per cent of its diesel from Kuwait under a long-term contract between state-run oil giants of the two countries — Kuwait Petroleum Corporation and Pakistan State Oil.

Kuwait also extended an oil credit facility to Pakistan for an additional two years in April.

In March, Kuwait assured Pakistan of full facilitation in the supply of diesel and jet fuel, which has been stalled due to the closure of the Strait of Hormuz.