Pakistan, Azerbaijan to expand oil sector cooperation

Pakistan has developed plans to broaden economic collaboration with Azerbaijan, which include proposals for equity participation in Pakistan Refinery Limited.

These matters were deliberated in a recent session led by Pakistan's Minister of Planning, Development, and Special Initiatives, Ahsan Iqbal, aimed at finalising investment proposals to be presented to Azerbaijan, Caliber.Az reports citing the local media.

“Pakistani Prime Minister Shehbaz Sharif instructed the minister to hold consultative meetings with relevant ministries, including the Ministry of Commerce, the Ministry of Industries and Production, the Ministry of Information Technology and Telecommunication, the Ministry of Federal Education and Professional Training, the Ministry of National Food Security and Research, the Board of Investment, etc., to create a portfolio of investment proposals in the amount $2–3 billion to presenting it to Azerbaijan,” the message says.

The Pakistani Energy Ministry’s Petroleum Division proposes several potential projects and areas for cooperation with Azerbaijan, including underground gas storage, the White Oil Pipeline, liquefied petroleum gas infrastructure, participation in Pakistan Refinery Limited (PRL), copper and gold mining, the creation of a joint venture between Pakistan State Oil (PSO) and the State Oil Company of the Azerbaijan Republic (SOCAR), investments in exploration blocks onshore and offshore.

Pakistan and Azerbaijan are in the process of finalizing a Memorandum of Understanding for cooperation in information and communication technologies, potentially leading to the establishment of IT campuses in Azerbaijan.

Additionally, negotiations are ongoing regarding transit and preferential trade with Baku. There are discussions about potentially increasing exports of pharmaceutical products and smartphones from Pakistan to Azerbaijan. Furthermore, there are considerations to provide legislative guarantees to SOCAR for the protection of investments in Azerbaijan.

SOCAR and Pakistan LNG Limited (PLL) are collaborating in the oil sector through a framework agreement focused on LNG supplies to Pakistan.