RIYADH: Saudi Aramco is set to enter the Pakistani fuels retail market for the first time after it signed an agreement to acquire a 40 percent stake in Gas & Oil Pakistan Ltd.
GO, a diversified downstream fuels, lubricants and convenience stores operator, is one of the largest retail and storage companies in Pakistan.
The deal will help Aramco secure additional outlets for its refined products and provide new market opportunities for Valvoline-branded lubricants following its acquisition of the Valvoline Inc. global products business in February.
The agreement will be subject to specific customary conditions, including regulatory approvals, to advance Aramco’s strategy to strengthen its downstream value chain internationally.
Aramco Downstream President Mohammed Y. Al-Qahtani said: “Our second planned retail acquisition this year aligns with Aramco’s downstream expansion strategy, with a clear path ahead for growing an integrated refining, marketing, lubricants, trading and chemicals portfolio worldwide.”
He added: “GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan.”
In February 2019, Pakistan and Saudi Arabia inked investment deals totaling $21 billion during the visit of Saudi Crown Prince Muhammad Bin Salman to Islamabad. The agreements included about $10 billion for an Aramco oil refinery and $1 billion for a petrochemical complex at the strategic Gwadar Port in Balochistan.
Speaking to Arab News on the sidelines of the 7th edition of The Future Summit in Karachi in November, Pakistani Energy Minister Muhammad Ali explained that the South Asian nation was “actively engaged” with Saudi authorities on a multibillion-dollar Aramco oil refinery project and expected progress within two months.
He highlighted that it was a “big project of $8-10 billion and everything from investment funding, its structuring, and policy framework has to be considered.”
The project encompasses building an integrated refinery in Pakistan that can process up to 450,000 barrels of crude oil daily.
Aramco is a global integrated energy and chemicals company that produces approximately one in every eight barrels of the world’s oil supply and develops cutting-edge energy technologies.
