Saudi Aramco has signed an agreement to acquire a 40% stake in one of Pakistan’s largest Oil and Gas companies.
The acquisition of Lahore-based Gas & Oil Pakistan Ltd. marks Aramco’s first entry into Pakistan’s fuels retail market, allowing it to expand globally by securing more outlets for its refined oil products.
Aramco’s strategic entry into the Pakistani fuel retail market is a significant step in its international expansion strategy.
A Strategic Move
The acquisition will enable Aramco to secure additional outlets for its refined products, further enhancing its global market presence.
Moreover, the move will open new market opportunities for Valvoline-branded lubricants following Aramco’s acquisition of the Valvoline Inc. global products business in early 2023.
Aramco’s Downstream Expansion Strategy
Mohammed Y. Al Qahtani, Aramco Executive Vice President Downstream, said:
“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. GO has significant storage capacity, high-quality assets, and growth potential that will help launch the Aramco brand in Pakistan.”
Benefits for Aramco
As one of Pakistan’s largest retail and storage companies, GO boasts a significant storage capacity, high-quality assets, and growth potential. These features are set to aid in launching the Aramco brand in Pakistan, opening a new chapter in the company’s history.
The Power Player
Gas & Oil Pakistan Ltd. (GO) is a diversified downstream fuels, lubricants, and convenience store operator. As one of Pakistan’s largest retail and storage companies, GO’s acquisition by Aramco signifies the company’s potential and leadership in the industry.
GO’s Market Presence
With over 1,100 outlets in Pakistan providing petrol, diesel, and lubricants, GO’s vast market presence forms a strong foundation for Aramco’s entry into the Pakistani retail fuel market.
In addition to its significant storage capacity, GO possesses high-quality assets and strong growth potential. These factors are bound to help launch the Aramco brand successfully in Pakistan.
The Acquisition Process
The acquisition process is subject to certain customary conditions, including regulatory approvals. Once these conditions are met, the transaction is expected to formally close, enabling Aramco to mark its entry into the Pakistani fuel retail market.
It aims to generate 12 tonnes of synthetic methanol daily from green hydrogen and captured CO2, focusing on the circular carbon economy and low CO2 emissions.
Global Market Value
As of 2023, Aramco is the third most valuable company globally, with a market value of $2.12 trillion. Only Microsoft and Apple surpass it in terms of market value.
Global Energy Leader
Aramco’s strategic entry into the Pakistani fuel retail market through acquiring a 40% stake in Gas & Oil Pakistan Ltd. is a significant step in its ongoing international expansion strategy.
The company’s constant pursuit of growth and innovation and commitment to strengthening its downstream value chain internationally reiterates its position as a global energy leader.
With a forward-looking approach and a strong focus on progress, Aramco continues to redefine the global energy landscape, marking notable achievements in its journey.