SOCAR set to finalize investment in Pakistan’s oil sector

January 22, 2026 (MLN): The State Oil Company of the Republic of Azerbaijan (SOCAR) has indicated that it is close to finalizing a major investment in Pakistan’s oil and gas sector, with a decision expected in February.

The development follows a high-level business roundtable held on the sidelines of the World Economic Forum (WEF) Annual Meeting in Davos, signaling growing international investor interest in Pakistan’s energy sector, according to a press release issued.

SOCAR President Mr. Rovshan Najaf during his engagement with Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, who chaired the business roundtable described Pakistan as a natural long-term energy partner, pointing to its large market size, rising energy demand, and ongoing reform efforts in the oil and gas sector.

SOCAR already maintains a commercial presence in Pakistan through SOCAR Trading, operating under a government-to-government LNG supply framework with Pakistan LNG Limited.

The arrangement allows SOCAR to supply up to one LNG cargo per month without take-or-pay obligations, providing Pakistan with greater pricing and demand flexibility.

This LNG framework has been extended through 2025, reflecting sustained cooperation between the two countries.

In addition, SOCAR is engaged with Pakistan State Oil (PSO) on petroleum product supplies and has expressed interest in expanding cooperation across the broader oil and gas value chain as sector reforms continue.

Mr. Najaf also highlighted SOCAR’s global footprint, noting that the state-owned energy company operates in more than 20 countries, employs over 66,000 people, and reported revenues of approximately $50.6 billion in 2024, with an estimated net worth of $56.75 billion in 2025.

He emphasized SOCAR’s experience as a national energy company from an emerging economy, positioning it as a credible long-term partner for Pakistan.

Welcoming the planned investment, Senator Aurangzeb reaffirmed the Government of Pakistan’s commitment to attracting strategic and commercially viable investment in the oil and gas and mining sectors, describing them as critical to energy security and industrial development.

He noted that ongoing reforms aim to enhance pricing transparency, contractual clarity, and risk-sharing frameworks to encourage sustained private-sector participation.

The meeting concluded with an understanding to maintain close coordination as SOCAR moves toward finalizing its investment decision, reflecting increasing investor confidence in Pakistan’s reform trajectory and long-term energy potential.

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