Azerbaijan’s oil corporation is poised to conclude its investment in Pakistan next month.

On Thursday, Pakistan’s finance ministry announced that Azerbaijan’s national energy corporation SOCAR is poised to conclude an investment in Pakistan’s oil and gas industry next month, subsequent to high-level discussions at the World Economic Forum in Davos.

The declaration followed a business roundtable led by Finance Minister Muhammad Aurangzeb, during which SOCAR President Rovshan Najaf informed Pakistani authorities that the company considers Pakistan a long-term energy partner, as stated by the finance ministry.

Pakistan is pursuing new foreign investment in its energy industry as part of comprehensive economic reforms intended to stabilize supplies, lower costs, and enhance contractual transparency. Islamabad has designated the oil and gas sector, along with mining and minerals, as pivotal to energy security and industrial development.

SOCAR has established a commercial presence in Pakistan via SOCAR Trading, which provides liquefied natural gas via a government-to-government agreement with Pakistan LNG Limited. According to the agreement, SOCAR is permitted to deliver a maximum of one LNG cargo per month without take-or-pay commitments, so providing Pakistan enhanced flexibility in demand and pricing management. The agreement has been prolonged until 2025, indicating sustained collaboration.

Najaf stated, as per the finance ministry’s announcement, that “SOCAR regards Pakistan as a natural long-term energy partner,” highlighting the country’s “market depth, increasing energy demand, and continuous reform momentum in the oil and gas sector.”

He emphasized SOCAR’s collaboration with Pakistan State Oil on petroleum product delivery and indicated a desire to enhance cooperation throughout the comprehensive oil and gas value chain as reforms progress.

Aurangzeb expressed support for the proposed investment, reaffirming the government’s dedication to securing “strategic and commercially viable investment” in the energy sector, noting that changes aim to enhance pricing transparency, contractual clarity, and risk-sharing arrangements, as stated in the announcement.

SOCAR is a prominent state-owned energy corporation active in over 20 nations, employing more than 66,000 individuals and reporting revenues of over $50.6 billion in 2024, according to the ministry.

Pakistan and Azerbaijan have been strengthening economic relations in recent years, with energy collaboration being a fundamental component alongside trade and investment dialogues. Officials assert that the anticipated SOCAR investment would represent a substantial advancement in fortifying bilateral energy relations.