Pakistan State Oil Company Limited (PSO), the country’s largest fuel marketing company, has announced the approval and execution of a Sale Purchase Agreement (SPA) with the State Oil Company of the Republic of Azerbaijan (SOCAR). The agreement aims to bolster the supply of petroleum products in Pakistan, reflecting deepening energy cooperation between the two nations.
In a notice to the Pakistan Stock Exchange (PSX) on Thursday, PSO revealed that its Board of Management (BoM) approved the agreement following approvals from the Economic Coordination Committee (ECC) and the Federal Cabinet.
The Ministry of Energy (Petroleum Division), in a letter dated December 3, 2024, informed PSO of these endorsements and instructed the company to expedite the signing process. “The signed agreement has been received from SOCAR on December 24, 2024,” stated the PSO notice.
The agreement’s execution is set to proceed shortly, with the SPA enabling the supply of petroleum products from SOCAR to PSO. This development makes PSO the second Pakistani entity, after Pakistan LNG Limited (PLL), to establish an import arrangement with the Azerbaijani energy giant.
Last year, PLL and SOCAR signed a framework agreement for LNG imports, offering a reliable monthly supply contingent on Pakistan’s demand and commercial viability. Pakistan currently meets the majority of its LNG needs through long-term contracts with Qatar, while spot cargo purchases address shortfalls.
The SPA between PSO and SOCAR underscores Pakistan’s ongoing efforts to diversify its energy partnerships and ensure a consistent supply of petroleum products to meet domestic demand.
