Baku February 24 2025: Pakistan State Oil (PSO), the country’s largest oil and marketing company, has signed multiple agreements with Azerbaijan’s State Oil Company (SOCAR) to enhance energy cooperation and strengthen supply chain security.
The agreements were formalized during the ongoing visit of the Prime Minister of Pakistan to Azerbaijan.
Among the key developments, PSO and SOCAR signed a Memorandum of Understanding (MoU) for the establishment of a Joint Trading Company (JTC) in Singapore. This initiative aims to secure Pakistan’s energy supply chain while leveraging global market opportunities.
Additionally, an MoU was signed between PSO, Frontier Works Organization (FWO), and SOCAR for collaboration on a pipeline project. Under this agreement, SOCAR is being considered as an equity partner to expand Pakistan’s pipeline infrastructure, particularly to enhance connectivity in the northern regions of the country.
Another major agreement includes a tripartite MoU between PSO, Pakistan Refinery Limited (PRL), and SOCAR. The agreement sets the groundwork for cooperation in refinery modernization, technical consultancy, feasibility studies, and project management.
Furthermore, a letter of acknowledgment was signed for the Sale and Purchase Agreement (SPA) between PSO and SOCAR, reinforcing Pakistan’s commitment to strengthening its oil supply security under the government-to-government arrangement.
These agreements mark a significant step in Pakistan’s energy collaboration with Azerbaijan, ensuring long-term benefits for the country’s fuel supply and infrastructure development.
