Saudi Aramco acquires 40% stake in Gas & Oil Pakistan

Saudi Aramco

Saudi Aramco will acquire a 40 percent equity stake in Gas & Oil Pakistan Ltd. (GO), a privately-owned fuels, lubricants and convenience stores operator, as part of its downstream expansion strategy.

The acquisition mark’s the Saudi oil major’s entrance into the Pakistani retail fuels market. 

Aramco will now be able to secure new outlets for its Valvoline-branded lubricants following the acquisition of US-based Valvoline Inc.’s global products business in February 2023.

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The transaction is subject to certain regulatory approvals, the companies said in a statement.

Aramco investment was pegged at $100 million, The Dawn, a Pakistani daily, reported, citing informed sources.

“GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan,” Aramco downstream president Mohammed Al Qahtani said. 

In October, Bloomberg reported that Saudi Aramco, the world’s largest oil producer, was considering bidding for Shell assets in Pakistan. However, Wafi Energy, a wholly-owned affiliate of Asyad Holding Group, a fuel retailer in Saudi Arabia, acquired the assets.

Saudi Aramco has already signed a memorandum of understanding with four Pakistani state-owned enterprises to set up a $10 billion oil refinery, the largest in the country.

Pakistan’s caretaker prime minister Anwaar-ul-Haq Kakar said in September that Saudi Arabia will invest up to $25 billion over two years primarily in the mining, agriculture and information technology sectors.