ISLAMABAD – The world’s biggest oil producer, Saudi Arabian Oil Co., or Saudi Aramco, inked agreements to acquire 40 percent equity stake in Gas & Oil Pakistan Ltd (GO) as it enters fuel retailing in the fifth most populated country, where energy demand is expected to grow in coming years.
The Saudi state owned oil giant tapped Pakistan’s retail market with massive investment that will help South Asian nation. GO Pakistan made an announcement on Tuesday saying Aramco signed definitive agreements to acquire a 40pc equity stake in GO.
The joint venture will also help Aramco to get additional outlets for its refined products and to provide new market opportunities for Valvoline-branded lubricants, after Aramco acquires the Valvoline Inc global products business this year.
Aramco, or Go Pakistan had not revealed the transaction’s worth, but reports in local media suggest that the transaction was around $100 million.
GO Pakistan holds a massive fleet of retail outlets and storage. The company said the transaction is subject to certain customary conditions, including regulatory approvals.
Earlier, the oil giant was interested in acquiring shares in Shell Pakistan but another oil company Wafi Energy acquired it from another Saudi firm.
Aramco Downstream President revealed that the company’s second planned retail acquisition 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 said GO has significant storage capacity, high-quality assets, and growth potential, which will help launch the Aramco brand in Pakistan.
