Pakistan State Oil (PSO) and Azerbaijan’s state-owned oil giant, SOCAR, have signed multiple Memorandums of Understanding (MoUs) to bolster Pakistan’s energy security, expand infrastructure, and strengthen bilateral cooperation.
The agreements, signed in Azerbaijan on Monday, include the establishment of a Joint Trading Company in Singapore, which will enhance Pakistan’s access to global energy markets. Until the joint venture is operational, PSO will leverage SOCAR’s existing network in Singapore to optimize energy procurement.
In addition to the trading collaboration, PSO and SOCAR—alongside the Frontier Works Organization (FWO)—inked an MoU to expand Pakistan’s oil pipeline network, addressing the country’s current reliance on road-based fuel transport. Currently, less than a third of oil movement in Pakistan takes place via pipelines. The new infrastructure aims to improve efficiency and supply chain resilience.
A separate tripartite agreement between PSO, Pakistan Refinery Limited (PRL), and SOCAR outlines cooperation in refinery modernization, project management, and technical services. The partnership will cover feasibility studies, risk assessment, and procurement strategies to enhance Pakistan’s refining capabilities.
Additionally, PSO and SOCAR have signed a Government-to-Government (G2G) Strategic Partnership Agreement (SPA) to further deepen bilateral energy ties. The agreements were formalized during Prime Minister Shehbaz Sharif’s visit to Azerbaijan, underscoring Pakistan’s commitment to regional collaboration in the oil and gas sector.
Industry sources highlight that these agreements mark a pivotal step in Pakistan’s energy security strategy, attracting foreign investment into the country’s infrastructure. PSO has officially notified the Pakistan Stock Exchange (PSX) regarding these developments, emphasizing its plans for pipeline expansion and long-term energy trade partnerships.
