Azerbaijan’s state-owned energy company SOCAR is set to finalize a significant investment in Pakistan’s oil and gas sector next month, according to Pakistan’s finance ministry. This development follows high-level discussions held during the World Economic Forum in Davos.
Business Roundtable and Strategic Partnership
The announcement was made after a business roundtable chaired by Pakistan’s Finance Minister Muhammad Aurangzeb. SOCAR President Rovshan Najaf expressed the company’s view of Pakistan as a long-term energy partner, emphasizing the country’s market potential, rising energy demand, and ongoing reforms in the oil and gas industry.
Current Cooperation and Future Prospects
- SOCAR currently operates in Pakistan through SOCAR Trading, supplying liquefied natural gas (LNG) under a government-to-government agreement with Pakistan LNG Limited.
- The LNG supply arrangement allows SOCAR to deliver up to one cargo per month without take-or-pay obligations, offering Pakistan flexibility in managing demand and pricing.
- This agreement has been extended through 2025, reflecting sustained collaboration between the two countries.
- Najaf also noted SOCAR’s cooperation with Pakistan State Oil on petroleum product supply and expressed interest in expanding partnerships across the oil and gas value chain as reforms progress.
Government Commitment to Energy Sector Investment
Finance Minister Aurangzeb welcomed the planned investment, reaffirming the government’s dedication to attracting strategic and commercially viable investments in the energy sector. He highlighted ongoing reforms aimed at enhancing pricing transparency, contractual clarity, and risk-sharing mechanisms.
Strengthening Bilateral Economic Ties
SOCAR is a major energy company with operations in over 20 countries, employing more than 66,000 people and generating revenues of approximately $50.6 billion in 2024. Pakistan and Azerbaijan have been deepening their economic relationship in recent years, with energy cooperation becoming a key focus alongside trade and investment.
The expected SOCAR investment is seen as a significant step toward strengthening bilateral energy ties and supporting Pakistan’s broader economic and energy security goals.
