PSO Signs Petroleum Supply Deal with Oman’s OQ Trading

KARACHI: Pakistan State Oil (PSO), the country’s largest oil marketing company, has signed a Sale and Purchase Agreement (SPA) with Oman’s OQ Trading Limited (OQT) for the supply of petroleum products, marking a key development in bilateral energy cooperation between Pakistan and Oman.

According to a material information disclosure submitted to the Pakistan Stock Exchange (PSX), the agreement was signed on October 8, 2026, following formal approval by PSO’s Board of Management and the Federal Cabinet.

The agreement has been executed under an Inter-Governmental Agreement (IGA) signed between the Islamic Republic of Pakistan and the Sultanate of Oman on May 14, 2018. Under the framework, OQ Trading Limited, formerly known as Oman Trading International Limited, was nominated to represent the Sultanate of Oman, while Pakistan State Oil was designated to represent the Government of Pakistan.

Following the signing of the inter-governmental agreement, PSO engaged with OQT to finalise the draft Sale and Purchase Agreement for petroleum product supplies. The agreement has now been formally signed after completing the required approval process.

The development establishes a contractual framework between the two designated entities for petroleum product supplies under the bilateral arrangement. It also reflects continued cooperation between Pakistan and Oman in the energy sector.

Petroleum products are a critical component of Pakistan’s energy supply chain, supporting transportation, industrial activity, power generation and other economic sectors. Ensuring reliable supplies remains important for meeting domestic demand and maintaining stability in the country’s fuel market.

Pakistan relies significantly on imported petroleum products and crude oil to meet its energy requirements, making supply arrangements and international energy partnerships important for the country’s energy security. Agreements with international trading companies can provide a framework for managing procurement and strengthening commercial cooperation, although the specific commercial terms and expected supply volumes under the newly signed agreement have not been disclosed in the announcement.

PSO plays a central role in Pakistan’s petroleum supply chain, including the procurement, storage and distribution of petroleum products. The company supplies fuel to a wide range of customers and sectors across the country.

OQ Trading Limited is an international energy trading company associated with Oman’s energy sector. Its nomination under the 2018 inter-governmental agreement provided the basis for engagement with PSO to develop the petroleum supply arrangement.

The latest disclosure fulfils PSO’s reporting obligations under Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the PSX Regulations, which require listed companies to disclose material information to the stock exchange.

However, the announcement did not specify the quantity of petroleum products to be supplied, the duration of the agreement, the pricing mechanism, or the expected financial impact on PSO. Further details on these aspects would be needed to assess the agreement’s potential implications for the company’s procurement strategy and financial performance.