Pakistan State Oil (PSO) and Kuwait Petroleum Corporation (KPC) have reaffirmed their 50-year energy partnership, agreeing to expand cooperation across the energy value chain and explore new avenues for strategic collaboration.
The PSO delegation was led by Mr. Jawwad Ahmed Cheema, Chief Executive Officer of PSO, and included Mr. Ghulam Murtaza Shaikh, Vice President Consumer Business, and Mr. Ashar Ansar, General Manager Supply. They met KPC’s senior leadership, including Shaikh Nawaf Saud Al-Sabah, Chief Executive Officer and Deputy Chairman of KPC, and Shaikh Khaled Ahmad Al-Sabah, Managing Director International Marketing at KPC and Chief Executive Officer of Kuwait Oil Tanker Company (KOTC).
Building on five decades of mutual trust and cooperation, both sides agreed to deepen collaboration in response to evolving global energy dynamics and Pakistan’s growing energy requirements. The expanded agenda covers supply, storage, shipping, refining, lubricants and investment, with a shared focus on energy security and long-term growth.
Key Outcomes
1. Supply Partnership Renewed: PSO and KPC agreed to continue their longstanding gasoil and jet fuel supply arrangements from Kuwait to Pakistan, while optimising terms in line with prevailing market realities.
2. Wider Product Basket: Both parties agreed to explore KPC supplies of motor gasoline and petrochemicals to Pakistan.
3. Lubricants Cooperation: Discussions covered base oil supplies and broader opportunities in lubricants marketing.
4. Bonded Storage in Pakistan: KPC will utilise Pakistan’s storage and port facilities under the Government of Pakistan’s recently revised Customs Bonded Storage Policy, which offers a more facilitative framework for international suppliers. The products will cater to domestic sales and re-exports to regional markets. Relevant Pakistani departments and institutions are expected to finalise the remaining procedures and documentation shortly to facilitate implementation.
5. Investment and Strategic Alliances: KPC expressed interest in further strategic alliances in Pakistan. Both sides will explore potential KPC investments in the country’s energy sector, including gas, as well as opportunities in refining, storage infrastructure, shipping and logistics.
6. 50-Year Milestone: PSO invited KPC’s top management to visit Pakistan early next year to celebrate the partnership’s 50th anniversary.
Leadership Quotes
“Fifty years in, this partnership is not slowing down. It is gathering pace,” said Mr. Jawwad Ahmed Cheema, CEO, PSO.
“Kuwait has stood with Pakistan for half a century, and that trust provides a strong foundation for the future. Our ambition is to evolve beyond traditional supply arrangements into a strategic alliance spanning fuels, lubricants, storage, logistics and investment. KPC’s interest in Pakistan’s storage and port infrastructure presents opportunities to strengthen energy security, facilitate regional trade and attract investment. PSO is committed to translating these discussions into tangible outcomes for the next fifty years.”
“Our partnership with PSO is among the most valued in KPC’s international portfolio and reflects the enduring brotherhood between Kuwait and Pakistan,” said Shaikh Khaled Ahmad Al-Sabah, Managing Director International Marketing, KPC. “We are proud to have supported Pakistan’s energy requirements over the past fifty years and look forward to expanding our commercial and strategic cooperation alongside a trusted partner.”
Acknowledgement
PSO extends its sincere appreciation to Shaikh Nawaf Saud Al-Sabah, CEO and Deputy Chairman, KPC, and Shaikh Khaled Ahmad Al-Sabah, Managing Director International Marketing, KPC, for their hospitality and commitment to strengthening the partnership.
PSO also acknowledges the Government of Pakistan and the Petroleum Division for policy reforms, particularly the revised bonded storage framework, which are facilitating international investment in Pakistan’s energy sector.
