ISLAMABAD: Pakistan’s top economic decision-making body on Monday approved a sale purchase agreement (SPA) between the state-run Pakistan State Oil (PSO) and Oman’s OQ Trading Limited to deepen bilateral cooperation in the energy sector, as Islamabad moves to strengthen its fuel reserves amid tensions in the Gulf region.
Pakistan imports most of its oil and gas from the Middle East and is working to expand domestic storage and refinery capacity to strengthen energy security amid tensions between the United States (US) and Iran.
The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, approved the agreement submitted by the Petroleum Division under an intergovernmental agreement previously signed between Pakistan and Oman.
“The SPA aims to promote and develop cooperation between OQ Trading and PSO in the field of energy,” a press release from the Finance Division said.
The approval comes as Islamabad works to diversify energy import channels and establish supply routes outside sensitive maritime chokepoints. Fighting between the US and Iran in the Strait of Hormuz have disrupted fuel supplies worldwide, pushing oil prices higher and creating inflationary pressures.
Earlier this year, PSO held direct talks with OQ Trading to secure additional fuel cargoes to meet domestic demand. The arrangement resulted in multiple shipments of motor gasoline and high-speed diesel from Omani ports to reinforce Pakistan’s fuel buffers.
Federal Minister for Petroleum Ali Pervaiz Malik recently met Oman’s Ambassador to Pakistan, Fahad Bin Sulaiman Bin Khalaf Alkharusi, to explore broader energy partnership opportunities, including potential upstream exploration and preferential oil supply arrangements.
The agreement with Oman is part of Pakistan’s broader strategy to deepen energy ties across the Gulf Cooperation Council.
A day earlier, PSO announced plans to expand its five-decade partnership with Kuwait Petroleum Corporation, spanning product supplies, logistics, terminal infrastructure and potential refining joint ventures.
