One of the top energy and chemical firms in the world, Aramco, made its debut in Pakistan's retail fuels market on Tuesday when it inked formal arrangements to purchase a 40% equity position in Gas & Oil Pakistan Ltd (GO).
The agreement between the Pakistani firm and the Saudi oil behemoth Aramco is contingent to normal conditions, such as regulatory approvals.
Following Aramco's acquisition of the Valvoline Inc. global products business in February 2023, the transaction would allow Aramco to obtain additional outlets for its refined products and also give new market potential for lubricants marketed under the Valvoline name.
One of Pakistan's biggest retailers and storage organizations is GO, which operates a variety of downstream fuels, lubricants, and convenience stores.
"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," stated Mohammed Y. Al Qahtani, president of Aramco Downstream, in remarks made at the event.
"GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan," the company's chief executive stated.
Dr. Khaqan Hassan Najeeb, a former adviser to the finance minister, said that the Saudi giant's investment will improve the outlook for the Pakistani oil market.
"It is extremely encouraging to see Aramco, one of the top integrated energy and chemical companies globally, investing in Pakistan," the economist stated to Geo.tv.
Given that this is Aramco's first foray into the Pakistani retail petroleum sector, this is particularly encouraging for Pakistan.
The prospect makes sound financial sense for Aramco's launch strategy in Pakistan, Najeeb continued.
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