Aramco to acquire 40% stake in Pakistan fuel retailer GO
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Saudi Aramco to acquire 40% stake in Pakistan fuel retailer GO

Saudi Aramco to acquire 40% stake in Pakistan fuel retailer GO

The state-energy firm said the transaction is subject to certain customary conditions, including regulatory approvals

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Saudi Aramco enters Pakistan with a 40% stake in GO

Saudi Aramco said Tuesday that it has agreed to acquire a 40 per cent stake in fuel distributor Gas & Oil Pakistan (GO), marking the state-owned energy major’s foray into the South Asian nation.

The deal would allow the Riyadh-listed energy firm to secure additional outlets for its refined products. It will further provide new market opportunities for Valvoline-branded lubricants, following Aramco’s acquisition of the Valvoline global products business in February 2023.

“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,” said Downstream president Mohammed Y. Al Qahtani.

“GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan.” The company is one of the biggest retail and storage companies in Pakistan.

The transaction is subject to certain customary conditions, including regulatory approvals.

Aramco’s entry into Pakistan is the company’s latest investment following the acquisition of fuel distributor Esmax Distribucion in Chile nearly four months ago, as the energy giant continues to expand its refining and chemicals operations worldwide. The deal gave the Dhahran-based oil firm access to retail fuel stations, airport operations, fuel distribution terminals and a lubricant blending plant.

Aramco expands global footprint

Meanwhile, Aramco is investing heavily in fuels and petrochemicals to diversify from crude oil sales, while tapping tap demand in new markets.

The company said capital expenditures in the first nine months of the year were SAR21.8bn ($5.8bn), a 12.3 per cent increase compared to SAR19.4 ($5.2bn) for the same period a year ago, driven by ongoing investments and expansion into new markets.

Aramco purchased a stake in a 211,000 barrels-a-day refinery in Poland in January as it looks to take advantage of Europe’s pivot away from Russian energy supplies.

In July, the oil company completed the SAR784bn acquisition of a 10 per cent stake in China’s oil refining giant Rongsheng Petrochemical (Rongsheng) through its subsidiary, Aramco Overseas Company.

The deal includes the supply of 480,000 barrels per day of Arabian crude oil to Rongsheng-controlled Zhejiang Petroleum and Chemical Company for 20 years.

Aramco raised its dividends to investors and Saudi Arabia’s government by more than half to $29.4bn, including a performance-linked portion, up from a regular dividend of $18.8bn a year ago.

The company’s net profit fell to $32.6bn for the quarter to September 30, compared to $42.4bn for the corresponding period in 2022.

Read: Saudi Aramco to acquire Chile’s Esmax Distribusción

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