ISLAMABAD — Azerbaijan’s state energy company SOCAR (State Oil Company of the Republic of Azerbaijan) is set to finalize a significant investment in Pakistan’s oil and gas sector by February, Pakistan’s finance ministry announced on Thursday, following high-level discussions on the sidelines of the World Economic Forum in Davos.
The announcement came after a business roundtable chaired by Finance Minister Senator Muhammad Aurangzeb, where SOCAR President Rovshan Najaf told Pakistani officials that the company views Pakistan as a long-term energy partner. Najaf highlighted Pakistan’s growing energy demand, market depth and ongoing reforms in the oil and gas sector as key factors drawing investor interest.
SOCAR already has a presence in Pakistan through SOCAR Trading, which supplies liquefied natural gas (LNG) under a government-to-government framework with Pakistan LNG Limited. Under this arrangement, SOCAR can provide up to one LNG cargo per month without take-or-pay obligations, giving Pakistan flexibility in managing LNG demand and pricing. The LNG agreement has been extended into 2025, reflecting continued cooperation between the two countries’ energy sectors.
Najaf also outlined ongoing engagement with Pakistan State Oil (PSO) on petroleum product supplies and expressed interest in expanding cooperation across the broader oil and gas value chain as Pakistan continues to implement reforms aimed at improving pricing transparency, contractual clarity and risk-sharing mechanisms.
In response, Finance Minister Aurangzeb reiterated the Government of Pakistan’s commitment to attracting strategic and commercially viable foreign investment in energy, mining and related sectors, which are considered central to strengthening Pakistan’s energy security and industrial growth.
SOCAR, a major state-owned energy company operating in more than 20 countries with reported revenues of over $50 billion, said the planned investment would further deepen bilateral energy cooperation and support Pakistan’s efforts to stabilize its energy supply and expand its industrial base.
The expected investment decision, anticipated next month, marks a notable step in Azerbaijan-Pakistan economic ties, coming at a time when Islamabad is actively seeking foreign direct investment to bolster its energy infrastructure and economic reform agenda.
Originally Published By: Arab News and Dunya News
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