Aramco to enter Pakistani fuel retail market with Gas & Oil Pakistan stake acquisition
Aramco, a global leader in integrated energy and chemicals, has signed definitive agreements to acquire a 40% equity stake in Gas & Oil Pakistan Ltd. (GO). This marks Aramco’s first venture into the Pakistani fuels retail market, signifying a strategic move to bolster its downstream value chain on an international scale.
Gas & Oil Pakistan, a prominent downstream fuels, lubricants, and convenience stores operator, stands as one of Pakistan’s largest retail and storage companies. The completion of this transaction is subject to certain customary conditions, including regulatory approvals.
Aramco to acquire 40% stake in Gas & Oil Pakistan to expand global footprint
Aramco’s Strategic Expansion in Downstream Sector
The planned acquisition is a significant part of Aramco’s strategy to strengthen its international presence in the downstream sector. This move will enable Aramco to secure additional outlets for its refined products and create new market opportunities, especially for Valvoline-branded lubricants. This follows Aramco’s acquisition of the Valvoline Inc. global products business earlier in February 2023.
Mohammed Y. Al Qahtani, Aramco Downstream President, emphasized the alignment of this acquisition with the company’s downstream expansion strategy. He noted Gas & Oil Pakistan’s significant storage capacity, high-quality assets, and growth potential as key factors in introducing the Aramco brand to Pakistan.
Enhancing Global Refining and Marketing Portfolio
This acquisition represents Aramco’s continued commitment to growing a comprehensive refining, marketing, lubricants, trading, and chemicals portfolio worldwide. The integration of Gas & Oil Pakistan into Aramco’s network is expected to enhance the company’s global refining and marketing operations, reinforcing its position as a key player in the international energy market.
The integration process will begin following the completion of regulatory approvals, marking a new chapter in Aramco’s global expansion and a significant development in the Pakistani energy sector.