Pakistan State Oil (PSO), the largest state-owned petroleum company in Pakistan, has taken a major step in expanding its international operations by finalizing a Sale and Purchase Agreement (SPA) with the State Oil Company of the Republic of Azerbaijan (SOCAR). This move is expected to strengthen PSO’s global partnerships and enhance its operational network.
Approval and Execution of the SPA
PSO’s Board of Management (BoM) approved the execution of the SPA after receiving the signed agreement from SOCAR on December 24, 2024. The agreement’s formal execution is slated to take place in due course, marking a significant milestone in PSO’s global expansion strategy.
PSO’s Notification to the Pakistan Stock Exchange (PSX)
In an official notice to the Pakistan Stock Exchange (PSX), PSO confirmed that the SPA will be executed shortly. The company emphasized the strategic importance of this agreement for future operations, ensuring stakeholders are kept up to date with developments.
Updates and Approvals for the SPA
Prior to the execution, PSO had notified the PSX on November 8, 2024, about the impending SPA, alerting stakeholders of the upcoming agreement and that further updates would follow upon finalization.
Moreover, a letter from the Ministry of Energy (Petroleum Division), dated December 3, 2024, confirmed the approval of the SPA by the Economic Coordination Committee (ECC), followed by the ratification from the Federal Cabinet. The Ministry directed PSO to expedite the signing process with SOCAR, ensuring the swift finalization of the deal.
Strengthening Energy Ties Between Pakistan and Azerbaijan
The signing of the Sale and Purchase Agreement is set to bolster energy cooperation between Pakistan and Azerbaijan, paving the way for deeper collaboration in the energy sector. This partnership is expected to foster greater energy security and open new avenues for both countries in the global energy market.
