The Board of Management (BoM) of Pakistan State Oil Company Limited (PSO), the largest fuel marketing company in the country, has approved the execution of a Sale Purchase Agreement (SPA) with the State Oil Company of the Republic of Azerbaijan (SOCAR).
The oil marketing company (OMC) disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.
“Kindly be informed that the Ministry of Energy (Petroleum Division), through its letter dated December 03, 2024, informed PSO of the Economic Coordination Committee (ECC)‘s approval of the SPA and the Federal Cabinet’s ratification of the ECC’s approval. The Ministry further advised PSO to make necessary arrangements for signing the SPA with SOCAR at the earliest.
“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,” read the notice.
PSO shared that the execution of the said agreement will take place in due course.
Last month, the ECC of the Cabinet approved the signing of SPA for the supply of petroleum products between Pakistan State Oil and SOCAR Azerbaijan.
The approval makes PSO the second Pakistani company after Pakistan LNG Limited (PLL) to import gas from the Azerbaijani energy company.
Pakistan secures second LNG cargo from Azerbaijan
In July last year, PLL and SOCAR signed a landmark LNG purchase agreement framework, a significant milestone in bilateral energy cooperation between the two nations.
The framework agreement stipulates that SOCAR may offer one LNG cargo per month to PLL, while PLL’s acceptance of the offer is subject to the demand for LNG in Pakistan and commercial considerations, ensuring a reliable and consistent supply of LNG to meet the country’s growing energy demands.
Pakistan meets more than half of its LNG requirement through long-term import contracts with Qatar while the gas deficit is met through spot cargo purchases.
Comments
Comments are closed for this article.