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The Pakistan State Oil Company Limited (PSO) has approved the execution of a Sale and Purchase Agreement (SPA) with the State Oil Company of the Republic of Azerbaijan (SOCAR). On December 24, 2024, the PSO Board of Management (BoM) approved the receipt of the signed agreement from SOCAR.
A notice from PSO to the Pakistan Stock Exchange (PSX) indicates that the execution of the agreement is set to occur in due course. In a previous announcement on November 8, PSO notified the PSX that an update would be provided following the execution of the SPA.
“Kindly be informed that the Ministry of Energy (Petroleum Division), through its letter dated December 03, 2024, informed PSO of the Economic Coordination Committee (ECC)‘s approval of the SPA and the Federal Cabinet’s ratification of the ECC’s approval,” the PSO’s letter read.
The Ministry of Energy (Petroleum Division) has communicated to PSO that the Economic Coordination Committee (ECC) has granted approval for the SPA, which has subsequently been ratified by the Federal Cabinet. The Ministry has directed PSO to promptly arrange for the signing of the SPA with SOCAR.
This agreement signifies a crucial advancement in enhancing energy relations between Pakistan and Azerbaijan, as the SPA facilitates the delivery of petroleum products from SOCAR to PSO. This development positions PSO as the second Pakistani entity, following Pakistan LNG Limited (PLL), to secure an import arrangement with the Azerbaijani energy giant.
