PSO, Kuwait Petroleum agree to expand 50-year partnership

KARACHI: Pakistan State Oil (PSO) and Kuwait Petroleum Corporation (KPC) have agreed to expand their five-decade energy partnership, exploring cooperation in fuel supplies, bonded storage, shipping, refining, lubricants and potential investments in Pakistan’s energy sector.

The understanding was reached during a meeting between senior officials of the two companies, as they discussed expanding commercial ties in response to changing global energy dynamics and Pakistan’s energy requirements.

The PSO delegation was led by Chief Executive Officer Jawwad Ahmed Cheema and included Vice President Consumer Business Ghulam Murtaza Shaikh and General Manager Supply Ashar Ansar. The delegation met KPC Chief Executive Officer and Deputy Chairman Shaikh Nawaf Saud Al-Sabah and Managing Director International Marketing Shaikh Khaled Ahmad Al-Sabah, who is also the chief executive officer of Kuwait Oil Tanker Company (KOTC).

Under the agreed arrangements, both companies will continue their longstanding gasoil and jet fuel supply arrangements from Kuwait to Pakistan, while optimising the terms in line with prevailing market conditions.

The two sides also agreed to explore the supply of motor gasoline and petrochemicals from KPC to Pakistan. Discussions further covered base oil supplies and broader cooperation in lubricants marketing.

Another key area of cooperation is bonded storage in Pakistan. KPC will utilise the country’s storage and port facilities under the government’s recently revised Customs Bonded Storage Policy, which provides a facilitative framework for international suppliers.

The stored products will cater to domestic sales as well as re-exports to regional markets. Relevant Pakistani departments and institutions are expected to complete the remaining procedures and documentation shortly to facilitate implementation.

The companies also discussed potential KPC investments and strategic alliances in Pakistan’s energy sector, including gas, refining, storage infrastructure, shipping and logistics. KPC expressed interest in pursuing further strategic cooperation in the country.

Commenting on the partnership, PSO CEO Jawwad Ahmed Cheema said the relationship was entering a new phase after 50 years of cooperation. He said the companies aimed to move beyond traditional supply arrangements towards a broader strategic alliance covering fuels, lubricants, storage, logistics and investment.

Cheema said KPC’s interest in Pakistan’s storage and port infrastructure could create opportunities to strengthen energy security, facilitate regional trade and attract investment. He added that PSO was committed to translating the discussions into tangible outcomes.

KPC Managing Director International Marketing Shaikh Khaled Ahmad Al-Sabah described the partnership with PSO as one of the most valued in KPC’s international portfolio, reflecting the longstanding relationship between Kuwait and Pakistan.

He said KPC had supported Pakistan’s energy requirements over the past 50 years and looked forward to expanding commercial and strategic cooperation with PSO.

As part of the anniversary arrangements, PSO has invited KPC’s senior management to visit Pakistan early next year to mark the partnership’s 50th anniversary.

PSO also acknowledged the role of the Government of Pakistan and the Petroleum Division in introducing policy reforms, particularly the revised bonded storage framework, which the company said was facilitating international investment in the country’s energy sector.

Copyright Business Recorder, 2026