PSO, Azerbaijan’s SOCAR to set up joint company in Singapore

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved the establishment of an International Joint Trading Company in Singapore, a collaborative venture between Pakistan State Oil (PSO) and the State Oil Company of Azerbaijan Republic (SOCAR).

The committee directed the Ministry of Petroleum to ensure thorough diligence on the investment process, particularly regarding equity contributions, and to provide a timeline for the company’s operational launch. Officials of the Petroleum Division, privy to the development, said that PSO would deposit $0.5 million in the bank in Singapore, which was mandatory to get the company registered over there. The ECC meeting was held under the chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb here.

According to officials, “Now the government has come up with the idea of setting up the trading company in Singapore in joint venture with SOCAR for purchasing LNG in spot market setting aside PPRA rules. SOCAR is already in LNG business and PSO can take advantage of the links SOCAR has for thriving in the international market.”

The ECC meeting granted approval for Pakistan’s membership in the New Development Bank (NDB), an international financial institution, established by the BRICS nations. As part of the membership, Pakistan will acquire capital shares worth $582 million and transfer the shares of DISCOs to the President of Pakistan’s name.