In a landmark development for Pakistan’s oil sector, Pakistan State Oil (PSO) and Azerbaijan’s state-owned oil giant, SOCAR, have signed four Memorandums of Understanding (MoUs) aimed at enhancing energy security and modernizing infrastructure. The agreements were inked in Azerbaijan during the visit of Prime Minister Mian Shahbaz Sharif, marking a significant milestone in bilateral energy cooperation.
One of the key MoUs will see PSO and SOCAR establish a Joint Trading Company in Singapore to fortify Pakistan’s energy supply chain and tap into global market opportunities. In another strategic move, PSO, SOCAR, and the Frontier Works Organization (FWO) agreed to expand Pakistan’s oil pipeline network. Currently, less than one-third of oil movement in the country is through pipelines a gap this project aims to bridge, with SOCAR invited as a potential equity partner to connect northern regions via enhanced pipeline infrastructure.
A tripartite MoU involving PSO, PRL, and SOCAR was also signed to outline cooperation in refinery modernization and technical consultancy services, including feasibility studies, risk assessment, and procurement support. Additionally, a Government-to-Government Strategic Partnership Agreement (SPA) further cements the bilateral ties between the two nations.
PSO has already notified the Pakistan Stock Exchange of these developments. Industry experts believe these agreements represent a pivotal step toward bolstering Pakistan’s energy security, fostering regional partnerships, and accelerating investments in the oil and gas sector. The PSO Board of Directors has approved the pipeline project, heralding Pakistan’s first long-distance oil pipeline developed through foreign investment and local collaboration.
