PSO inks SPA with Oman's OQ Trading for petroleum supplies

Pakistan State Oil (PSO) has signed a sale and purchase agreement with Oman’s OQ Trading Limited (OQT) for petroleum product supplies under an inter-governmental agreement (IGA) between the two countries.

The listed state-owned oil marketing company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.

“An IGA between the Islamic Republic of Pakistan and the Sultanate of Oman was signed on May 14, 2018 wherein OQ Trading Limited, formerly Oman Trading International Limited, was nominated on behalf of the Sultanate of Oman and Pakistan State Oil was nominated on behalf of the Government of Pakistan,” read the notice.

“Under the IGA, PSO engaged with OQT for finalising a draft Sale and Purchase Agreement (SPA) for supplies of Petroleum products. After formal approval of the SPA by PSO’s Board of Management and the federal cabinet, the SPA has been signed between PSO and OQT on October 8, 2026,” it added.

PSO and Oman International (Trading OQT), which is now OQ Trading, have been engaged in discussions regarding the provision of additional oil cargoes to Pakistan.

Earlier in August, the Economic Coordination Committee (ECC) of the Cabinet approved an SPA between PSO and OQ Trading to strengthen the country’s energy security and petroleum supply chain. The SPA aims to promote and develop cooperation between OQ Trading and PSO in the field of energy.           

In March, three cargoes of petrol and one of diesel were imported from Oman. The Federal Minister for Petroleum also discussed with the Omani Ambassador the possibility of Oman providing preferential energy cargoes to Pakistan, a request that was met with a positive response.