Business Desk 
Dec 26, 2024
The Board of Management of Pakistan State Oil Company Limited (PSX: PSO) has approved and executed the Sale Purchase Agreement (SPA) between PSO and the State Oil Company of Azerbaijan Republic (SOCAR), aiming to strengthen the supply of petroleum products across Pakistan.
In a statement to the Pakistan Stock Exchange (PSX) on Thursday, PSO disclosed that its Board of Management (BoM) approved the agreement, which was later approved by the Economic Coordination Committee (ECC) and the Federal Cabinet.
“PSO’s Board of Management recently approved the execution of the SPA between PSO and SOCAR, and the signed agreement has been received from SOCAR on December 24, 2024. Execution of the agreement will take place in due course,” the notice added.
The agreement’s execution is poised to progress in the near future, with the SPA facilitating the supply of petroleum products from SOCAR to PSO. This move makes PSO the second Pakistani organisation, following Pakistan LNG Limited (PLL), to finalise an import partnership with the Azerbaijani energy company.
In 2024, PLL and SOCAR signed an agreement for Liquefied Natural Gas (LNG) imports, ensuring a secure monthly supply contingent on Pakistan’s demand and financial feasibility. Currently, Pakistan fulfils most of its energy needs through long-term agreements with Qatar.
The SPA between PSO and SOCAR forms part of Pakistan’s broader efforts to expand its energy partnerships and ensure a consistent and uninterrupted supply of petroleum products to meet domestic requirements.
