On November 9, 2026, in Shanghai, a document was signed between SOCAR Vice President Fuad Musayev and Sinopec Vice President Li Yuxing. There is no disclosed amount or procurement list, but this memorandum of understanding opens a door for supply chain cooperation between the two energy companies. From the coast of the Caspian Sea to China's refining bases, there is a possibility of connecting supplier lists, operational experience, and procurement systems.

Two lists of suppliers are interconnected

The first level of arrangement in the memorandum is for both parties to display their respective supplier resource information on the table. SOCAR has long served the development of oil and gas in the Caspian Sea, and has acquired a group of local suppliers familiar with construction standards in the Caucasus region; Sinopec has formed a mature supplier network in ensuring the supply of materials for large-scale refining projects. Both parties will jointly study the development strategy of supply chain management, so that information exchange goes beyond list exchange and provides a comparable basis for subsequent procurement decisions.

Bilateral exchange of operational experience

The second layer focuses on operational experience and best practices. The two companies have their own approaches to procurement strategy, inventory control, logistics scheduling, and risk response in different market environments. SOCAR has accumulated local experience in cross-border logistics and long-term equipment procurement, while Sinopec has formed a system for material coordination in large-scale projects. Both parties will compare the operational procedures and management tools to find areas where they can learn from each other. Keywords: the Belt and Road news network, enterprise industry, petrochemical

Product mutual procurement system

The third level of arrangement is to explore the integration of each other's products, equipment, and services into their respective procurement systems. This means that in the future, some equipment and services of Sinopec may enter SOCAR's procurement list, and SOCAR's related products may also appear in Sinopec's supply chain. Memos are framework documents, and specific procurement still needs to be implemented through bidding, framework agreements, or orders on a case by case basis. The full text of the terms, effective conditions, and subsequent business arrangements shall be subject to the official documents of both parties. From signing to actual transaction, there are still stages such as qualification review, technical docking, and business negotiation, but the channel has already been opened.Editor/Gao Xue