DAVOS 26: Azerbaijan’s SOCAR to finalize investment in Pakistan’s oil & gas sector by next month

The State Oil Company of the Republic of Azerbaijan (SOCAR) on Thursday announced that it is set to finalise its investment in Pakistan’s oil and gas sector during February.

The announcement was made by Rovshan Najaf, President of SOCAR, during his engagement with the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on the sidelines of the World Economic Forum (WEF) Annual Meeting in Davos, read a statement released by the Finance Division.

Najaf stated that SOCAR views Pakistan as a natural long-term energy partner, citing the country’s market depth, growing energy demand, and ongoing reform momentum in the oil and gas sector.

Najaf highlighted SOCAR’s existing commercial engagement in Pakistan through SOCAR Trading, which operates under a G2G LNG framework with Pakistan LNG Limited, providing Pakistan with flexible LNG supply arrangements.

Under this framework, SOCAR can supply up to one LNG cargo per month without take-or-pay obligations, offering enhanced price and demand flexibility. The LNG arrangement has been extended into 2025, reflecting continued cooperation between the two sides.

He further noted SOCAR’s ongoing engagement with Pakistan State Oil (PSO) on petroleum product supply and expressed interest in expanding cooperation across the broader oil and gas value chain as Pakistan continues to implement energy-sector reforms.

Najaf outlined SOCAR’s global profile as a major state-owned energy company operating in over 20 countries, with a workforce exceeding 66,000 employees, revenues of approximately $50.6 billion (2024), and an estimated net worth of $56.75 billion (2025).

He emphasised SOCAR’s experience as a peer national energy company from an emerging economy, positioning it as a credible long-term partner for Pakistan’s energy sector.

Welcoming SOCAR’s planned investment, Aurangzeb reiterated the Government of Pakistan’s commitment to attracting strategic and commercially viable investment in the oil and gas and mining sectors, describing these areas as central to Pakistan’s energy security and industrial growth.

He noted that ongoing reforms are focused on improving pricing transparency, contractual clarity, and risk-sharing mechanisms to support sustained private-sector participation.

The engagement concluded with a shared understanding to maintain close coordination as SOCAR moves toward finalising its investment decision.