Islamabad: Pakistan State Oil (PSO), Pakistan’s largest fuel marketing company, has said it will execute a sale purchase agreement (SPA) with the State Oil Company of the Republic of Azerbaijan (SOCAR).
The petroleum corporation revealed the development on Thursday in a disclosure to the Pakistan Stock Exchange (PSX).
“Kindly be informed that the Ministry of Energy (Petroleum Division) informed PSO of the Economic Coordination Committee (ECC)’s approval of the SPA and the Federal Cabinet’s ratification of the ECC’s approval,” PSO said in a statement.
The ministry further advised PSO to make necessary arrangements to sign the SPA with SOCAR as soon as possible.
Kindly be informed that the Ministry of Energy (Petroleum Division) informed PSO of the Economic Coordination Committee (ECC)’s approval of the SPA and the Federal Cabinet’s ratification of the ECC’s approval.” — PSO’s statement.
“PSO’s Board of Management recently approved the execution of the SPA between PSO and SOCAR and the signed agreement was received from SOCAR on December 24, 2024,” it said.
Pakistan and Azerbaijan enjoy cordial relations.
High level visit
In July President of Azerbaijan Ilham Aliyev arrived in Pakistan for a two-day official visit at the invitation of Pakistan Prime Minister Shehbaz Sharif.
During his visit, President Aliyev engaged in high-level discussions with the country’s top leadership and discussed a broad range of topics aimed at strengthening bilateral cooperation between the two countries.
Last month, the ECC of the cabinet approved the signing of SPA for the supply of petroleum products between PSO and SOCAR Azerbaijan, the Business Recorder reported.
It also reported that the approval makes PSO the second Pakistani company after Pakistan LNG Limited (PLL) to import gas from the Azerbaijani energy company.
In July last year, PLL and SOCAR signed a landmark LNG purchase agreement framework, a significant milestone in bilateral energy cooperation between the two nations.
The framework agreement stipulates that SOCAR may offer one LNG cargo per month to PLL, while PLL’s acceptance of the offer is subject to the demand for LNG in Pakistan and commercial considerations, ensuring a reliable and consistent supply of LNG to meet the country’s growing energy demands.
