The Economic Coordination Committee (ECC) of the Cabinet approved a sale purchase agreement for the supply of petroleum products between Pakistan State Oil (PSO) and the State Oil Company of the Republic of Azerbaijan (SOCAR).
The committee met under the chairmanships of Minister for Finance and Revenue Senator Muhammad Aurangzeb, according to a news release.
During the meeting, several key agenda items were discussed and decisions were made. The Ministry of Energy (Petroleum Division) presented a summary, seeking approval for the Sale Purchase Agreement (SPA) for the supply of POL products between Pakistan State Oil (PSO) and SOCAR Azerbaijan.
The apex committee approved the signing of the Sale Purchase Agreement, which will make PSO the second Pakistani company, after Pakistan LNG Limited (PLL), to import gas from Azerbaijan’s energy giant.
Pakistan has been actively seeking partnerships with Azerbaijani firms, particularly those in the energy sector.
In July 2023, Pakistan signed a framework agreement with Azerbaijan for the import of low-cost liquefied natural gas (LNG) on flexible terms for a period of one year. The agreement was signed between the Pakistan LNG Limited (PLL), a state-owned entity mandated to procure LNG, and Azeri firm SOCAR.
In January 2024, Pakistan LNG Limited secured its second LNG cargo from SOCAR under the government-to-government framework agreement.
During a state visit of President of Azerbaijan Ilham Aliyev in July 2024, both governments signed 15 agreements covering various fields, including transit trade, mineral resources, energy, and tourism.
In September, Pakistan’s Ambassador to Azerbaijan Qasim Mohiuddin held a meeting with SOCAR President Rovshan Najaf and discussed possible participation of the State Oil Company of Azerbaijan in the projects implemented in Pakistan.
