40% of the Pakistani oil marketing company will be owned by Aramco
On Tuesday, Saudi Aramco formally sealed agreements in Dhahran, Saudi Arabia, marking its acquisition of a 40 percent equity stake in Gas & Oil Pakistan Ltd. This strategic move is contingent upon meeting customary conditions, including obtaining regulatory approvals. Notably, this marks Aramco's inaugural foray into the Pakistani fuels retail market, underscoring its commitment to enhancing its downstream value chain on an international scale.
The acquisition serves as a key milestone in Aramco's broader strategy, positioning the company to bolster its presence in the downstream sector globally. By securing a substantial share in Gas & Oil Pakistan Ltd., Aramco anticipates gaining additional distribution channels for its refined products. Moreover, the acquisition creates new market opportunities for Valvoline-branded lubricants, following Aramco's earlier acquisition of Valvoline Inc.'s global products business in February 2023.
Expressing the company's perspective, Mohammed Y. Al Qahtani, Aramco Downstream President, remarked, “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." Al Qahtani highlighted Gas & Oil Pakistan's substantial storage capacity, high-quality assets, and growth potential as contributing factors that will facilitate the introduction of the Aramco brand in Pakistan.
Gas & Oil Pakistan boasts a robust network of over 1,100 retail outlets across the country, complemented by oil and storage terminals and a fleet of more than 800 tank trucks. Notably, the company has set a pioneering milestone in Pakistan by being the first Oil Marketing Company (OMC) to introduce electric vehicle charging stations. The inaugural station has been installed at a Gas & Oil Company-owned and company-operated (COCO) retail outlet in Lahore, with plans for additional installations along highways and motorways throughout Pakistan. In addition to this retail venture, discussions are underway between Pakistani authorities and Saudi Aramco for the establishment of a cutting-edge, deep-conversion refinery in Pakistan, indicative of the broader collaboration between the two entities in advancing the country's energy landscape.
