ISLAMABAD: In a major development, Saudi Arabia's oil giant Aramco on Tuesday signed definitive agreements to acquire a 40% equity stake in Gas & Oil Pakistan Ltd (GO), making its first entry into Pakistan’s fuels retail market.
According to a joint statement issued by Saudi oil giant Aramco and the Pakistani company, the transaction is subject to certain customary conditions, including regulatory approvals.
The transaction would enable Aramco to secure additional outlets for its refined products and further provide new market opportunities for Valvoline-branded lubricants, following Aramco’s acquisition of the Valvoline Inc. global products business in February 2023.
GO, a diversified downstream fuels, lubricants, and convenience store operator, is one of the largest retail and storage companies in Pakistan.
Speaking on the occasion, 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."
"GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan," Aramco's top official said.
Former adviser of the finance ministry, Dr Khaqan Hassan Najeeb, said the Saudi giant's investment would boost the Pakistani oil market's prospects.
“Certainly, heartening to see Aramco, the world’s leading integrated energy and chemicals companies, taking take investment stake in Pakistan," the economist told Geo.tv.
"This is especially encouraging for Pakistan as it is Aramco’s first entry into the Pakistani petroleum retail market.”
Najeeb added that the potential makes good business sense for Aramco's launch strategy in Pakistan.
The Special Investment Facilitation Council (SIFC) — a civil-military body formed to bring foreign investment — has plans to attract billions of dollars worth of inflows from Aramco as well, The News reported earlier this year.
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