Saudi Aramco is set to make its debut in the Pakistani fuels retail market through a groundbreaking agreement. The energy giant has signed a deal to acquire a 40% stake in Gas & Oil Pakistan Ltd (GO), a leading downstream fuels, lubricants, and convenience stores operator in Pakistan.
As one of the largest retail and storage companies in the country, GO provides Saudi Aramco with a strategic entry point into the Pakistani market. The move aims to secure additional outlets for Aramco’s refined products and create new market opportunities, particularly for Valvoline-branded lubricants, following the company’s acquisition of Valvoline Inc. global products business in February.
The agreement, subject to customary conditions, including regulatory approvals, aligns with Aramco’s international downstream expansion strategy. By venturing into the Pakistani market, Aramco seeks to strengthen its global downstream value chain, encompassing refining, marketing, lubricants, trading, and chemicals.
Mohammed Y. Al-Qahtani, Aramco Downstream President, commented on the strategic move, stating, “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 emphasized the significance of GO’s storage capacity, high-quality assets, and growth potential, which will aid in introducing the Aramco brand in Pakistan.
In February 2019, Saudi Arabia and Pakistan inked investment deals worth $21 billion, part of which included approximately $10 billion for an Aramco oil refinery and $1 billion for a petrochemical complex at the strategic Gwadar Port in Balochistan. Aramco’s move into the fuels retail sector in Pakistan further solidifies its position as a global integrated energy and chemicals company, contributing significantly to the world’s oil supply.
