Pakistan secures oil supply agreement with Oman’s OQ trading

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Deal is expected to help Pakistan secure oil supplies through govt-backed transactions

Pakistan State Oil (PSO) has finalised an agreement with Oman’s OQ Trading for oil supplies, a development that could support the country’s energy security amid uncertainty in the Middle East.

Under the agreement, the two entities will conduct oil transactions backed by a government guarantee, according to a notice PSO issued to the Pakistan Stock Exchange on Friday.

PSO said the agreement was formally signed after receiving approval from the Federal Cabinet and the company’s board of directors. The Economic Coordination Committee (ECC) had also previously approved the arrangement.

The agreement comes amid concerns over regional tensions and their potential impact on global oil supplies and prices.

Discussions have also taken place between PSO and OQ Trading regarding the supply of additional oil shipments, according to the information provided about the agreement.

Energy market observers say the arrangement could help Pakistan access oil from the international market at a lower premium, potentially easing some of the cost pressures associated with securing supplies.

The agreement’s impact will depend on the terms of individual transactions, the availability of supplies and prevailing international market conditions.

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