Azerbaijan-Pakistan energy pact on the cards

Azerbaijan and Pakistan are likely to sign an inter-government agreement on co-operation in the field of energy during the scheduled visit of Azerbaijan President to Pakistan by end of February. Sources said Azerbaijan President is due to arrive in Islamabad by end of current month. The documents available with Business Recorder reveal that Pakistan and Azerbaijan have agreed to a draft agreement. Foreign Affairs and Law and Justice Division have already cleared the inter-government agreement from political and legal point of view.
Azerbaijan offered to export crude oil, petroleum products and liquefied natural gas (LNG) to Pakistan and expressed an interest in constructing a LNG terminal as well as liquefied petroleum gas (LPG) storage in a joint venture between Azerbaijan''s state oil company - SOCAR - and a Pakistan-designated company. In the sixth session of Pakistan-Azerbaijan Joint Economic Commission held in April 2016, both sides agreed to promote investment opportunities in the energy sector including exploration and production of oil and its products, broadening co-operation for the supply of crude oil and its products and setting up an LNG and LPG terminal in a joint venture between nominated enterprises of the two countries.
Prime Minister Nawaz Sharif had approved a proposal on March 10, 2015 for the start of negotiations with Azerbaijan on a memorandum of understanding (MoU) for mutual co-operation in the area of oil and gas exploration and production. The Prime Minister had allowed the Ministry of Petroleum to negotiate with energy companies of different countries including those of Azerbaijan.
Pakistan and Azerbaijan have also agreed on conducting joint research by setting up a laboratory and undertaking oil and gas production tests. Besides, they will share scientific and technological developments in oil and gas exploration and production as well as committing to the training of professionals working in the petroleum industry.
Under the draft agreement, both sides will also move to jointly evaluate the possibility of supporting relevant sides in oil and gas exploration and development projects in the two countries.