Pakistan, Russia explore oil sector deal

Finance Minister Muhammad Aurangzeb on Tuesday said Pakistan is in talks with Russia on a potential oil-sector agreement, with discussions underway between the energy ministries of both countries.

“All of these areas are Russia’s strengths. And we would be very happy if Russia agreed on an agreement in this sector with Pakistan,” Aurangzeb told Russian news agency RIA.

According to Reuters, the discussions follow ongoing engagement between the two countries in oil, gas, and minerals, including upgrading a refinery in Pakistan and exploring joint ventures in exploration, production, and refining. Pakistan began importing Russian crude oil in 2023, aiming to diversify energy sources and lower import costs.

Aurangzeb also said Pakistan and Russia are considering building another steel plant in the country.

Read: Progress on major JVs with Russia likely

In October this year, Federal Minister for Petroleum Ali Pervez Malik led Pakistan's delegation to the 14th St Petersburg International Gas Forum 2025, where he held a series of high-level meetings aimed at strengthening cooperation with Russia in the oil, gas, and minerals sectors.

Federal Minister for Petroleum, Ali Pervez Malik, represented Pakistan at the plenary session of the St Petersburg International Gas Forum (SPIGF) 2025, held from October 7-10, where he highlighted the country’s energy reforms and investor-friendly policies under Prime Minister Shehbaz Sharif.

At the session, titled “Gas Market 2025-2035: New Contours in a Fast-Moving Environment,” Malik told global industry leaders that Pakistan was pursuing energy diversification and transparency to attract international investors and ensure long-term sustainability. The forum featured senior figures including Gazprom Chairman Alexey Miller, Russian Energy Minister Sergei Tsivilev, and Turkish Energy Minister Alparslan Bayraktar, with discussions centred on global gas market trends, energy transition, and international cooperation amid shifting geopolitical realities.

Read More: Russia calls Pakistan key regional partner

On the sidelines, Malik held detailed discussions with Gazprom Chairman Alexey Miller. Both sides agreed to strengthen collaboration between Pakistan’s Oil and Gas Development Company Limited and Gazprom in exploration, joint ventures, and infrastructure development. Malik also met senior executives from Rusgeo, the Russian Geological Survey, and energy artificial intelligence company Nedra Digital to discuss Russian investment opportunities in Pakistan’s energy and minerals sectors, including technology transfers and digital solutions to improve exploration and production efficiency.

In a separate meeting with Turkey’s Minister of Energy and Natural Resources, Alparslan Bayraktar, Malik discussed trilateral cooperation in energy transport, liquefied natural gas, and mineral development. Highlighting Pakistan’s reform agenda, he invited international investors to participate in the upcoming Pakistan Minerals Investment Forum, calling it a reflection of Pakistan’s commitment to becoming a key destination for resource-based investment.

SPIGF, one of the world’s leading energy industry events, gathered more than 30,000 participants from 50 countries, featuring over 100 sessions on natural gas development, exploration technologies, digital transformation, and sustainable energy systems.

Also Read: Russian finance ministry proposes VAT hike to fund war in Ukraine

Malik’s visit follows the September meeting between Prime Minister Shehbaz Sharif and Russian President Vladimir Putin in Beijing, where both leaders reaffirmed their commitment to expanding cooperation in energy, trade, and regional connectivity, including developing a trade corridor linking Russia, Central Asia, Afghanistan, and Pakistan. PM Sharif had praised Russia’s role in strengthening bilateral ties, noting that Pakistan’s imports of Russian crude last year had significantly increased trade volumes, while Putin described Pakistan as a “traditional and valued partner in Asia” and expressed optimism about expanding economic collaboration.

Malik’s participation at SPIGF builds on his engagement at the St Petersburg International Economic Forum (SPIEF) 2025, where he unveiled Pakistan’s Mining Framework Policy and highlighted the completion of the Reko Diq feasibility study. He emphasised that Pakistan’s mineral wealth, including copper, gold, lithium, and rare earth elements, offers significant opportunities for sustainable development under clear regulatory frameworks.