Islamabad, Dec 26: The Board of Management of Pakistan State Oil Company Limited (PSX: PSO) has greenlit the execution of a pivotal Sale Purchase Agreement (SPA) with the State Oil Company of Azerbaijan Republic (SOCAR), marking a significant step toward enhancing Pakistan’s energy supply chain.
In a notification sent to the Pakistan Stock Exchange (PSX) on Thursday, PSO disclosed that the Ministry of Energy (Petroleum Division) formally communicated the Economic Coordination Committee (ECC)’s approval of the SPA on December 3, 2024, with subsequent ratification by the Federal Cabinet. The Ministry also instructed PSO to expedite the agreement’s signing.
PSO’s Board of Management recently endorsed the SPA, and the signed agreement was received from SOCAR on December 24, 2024. “Execution of the agreement will proceed in due course,” PSO stated, emphasizing the readiness to finalize this strategic partnership.
Earlier reports indicate that under the SPA, Azerbaijan will provide petroleum products to PSO via SOCAR on credit under a long-term arrangement. This initiative aligns with Pakistan’s efforts to stabilize its energy supply and strengthen ties with international energy partners. The agreement is expected to bolster Pakistan’s petroleum reserves and support the domestic energy market, providing much-needed credit flexibility amid economic challenges.
