PSO board approves agreement with Azerbaijan’s SOCAR

KARACHI: The Management Board of Pakistan State Oil Company Limited (PSO), the state-owned oil marketing company (OMC), has approved the execution of a sale and purchase agreement (SPA) with the State Oil Company of the Republic of Azerbaijan (SOCAR).

According to a notice issued by PSO to the Pakistan Stock Exchange (PSX), the signed agreement from SOCAR was received on December 24, and its execution is planned to take place in due course. In its earlier communication dated November 8, PSO had informed the PSX that the company would provide an update once the SPA was executed. The agreement’s progress follows confirmation of the Economic Coordination Committee’s (ECC) decision, its subsequent ratification by the federal cabinet, and formal approval by PSO’s management board.

The Ministry of Energy (Petroleum Division) communicated the ECC’s approval and the federal cabinet’s ratification of the SPA to PSO in a letter dated December 3. The ministry also instructed PSO to expedite the necessary arrangements for signing the agreement with SOCAR, according to the notice.