The State Oil Company of the Azerbaijan Republic (SOCAR) and China Petroleum & Chemical Corporation (Sinopec) have signed a Memorandum of Understanding on strategic cooperation in Shanghai, China.

The document was signed by SOCAR Vice President Fuad Musayev and Sinopec Vice President Li Yuxing, according to SOCAR.

The agreement aims to strengthen cooperation between the two energy companies in procurement and supply chain management.

Under the memorandum, the companies will exchange information on supplier resources and develop strategies to improve supply chain management.

The agreement also envisages the exchange of expertise and best practices, as well as exploring opportunities to include each other's products, equipment, and services in their respective procurement and supply chains.

In addition, SOCAR and Sinopec may expand cooperation into other areas agreed upon by both sides.

The agreement marks another step in strengthening business ties between Azerbaijan and China, particularly in the energy sector and related supply chain operations.