Azerbaijan’s SOCAR to finalise oil and gas investment in Pakistan in February

Following the high-level business roundtable chaired by the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on the sidelines of the World Economic Forum (WEF) Annual Meeting in Davos, the State Oil Company of the Republic of Azerbaijan (SOCAR) has announced that it is set to finalise its investment in Pakistan’s oil and gas sector during February.

The announcement was made by SOCAR President Rovshan Najaf during an engagement with Finance and Revenue Minister Muhammad Aurangzeb, according to a statement issued by the Ministry of Finance.

Najaf said SOCAR views Pakistan as a long-term energy partner, citing market size, rising energy demand and ongoing reforms in the oil and gas sector. He noted that SOCAR already has a commercial presence in Pakistan through SOCAR Trading under a government-to-government LNG framework with Pakistan LNG Limited.

Under the arrangement, SOCAR can supply up to one LNG cargo per month without take-or-pay obligations, providing flexibility on pricing and volumes. The LNG framework has been extended into 2025.

Najaf also referred to SOCAR’s engagement with Pakistan State Oil on petroleum product supply and said the company is interested in expanding cooperation across the oil and gas value chain as reforms continue.

He outlined SOCAR’s global operations across more than 20 countries, with a workforce of over 66,000 employees, revenues of about $50.6 billion in 2024 and an estimated net worth of $56.75 billion in 2025.

Welcoming the proposed investment, the finance minister reiterated the government’s commitment to attracting strategic investment in the oil, gas and mining sectors. He said reforms are focused on improving pricing transparency, contractual clarity and risk-sharing to support private-sector participation.

Both sides agreed to maintain coordination as SOCAR moves towards finalising its investment decision.