Pakistan State Oil (PSO) and the State Oil Company of Azerbaijan Republic (SOCAR) have signed a Memorandum of Understanding (MOU) in Baku, Azerbaijan, to establish a Joint Trading Company (JTC) in Singapore.
The JTC will help strengthen Pakistan’s energy supply chain while leveraging global market opportunities, PSO said in a stock filing to the main bourse on Monday.
SOCAR has been invited as a potential equity partner in a pipeline project with PSO and the Frontier Works Organization (FWO) to enhance oil transportation infrastructure in northern Pakistan, where pipelines currently handle less than a third of oil movement.
PSO, Pakistan Refinery Limited (PRL), and SOCAR also signed an MOU to collaborate on refinery modernization, covering project management consultancy, technical advisory services, feasibility studies, risk assessment, and procurement support.
Furthermore, PSO and SOCAR signed a letter of acknowledgment reaffirming their Sale and Purchase Agreement (SPA) under a government-to-government arrangement, initially announced in December 2024.