Saudi Aramco acquires 40% stake in GO after obtaining regulatory approval

Saudi Aramco acquired a 40% stake in Gas & Oil Pakistan Ltd. (GO), after obtaining a go-ahead from the Competition Commission of Pakistan, marking its first venture into Pakistan’s fuel retail market.

Aramco signed the deal to acquire GO’s stake in December 2023, aiming to strengthen Aramco’s international downstream value chain and give GO a competitive edge.

Saudi Aramco’s unit Aramco Asia Singapore submitted the merger application to CCP, which approved the application after finding no dominance concerns, aligning with its goal of promoting fair competition.

Pakistan and Saudi Arabia have been working closely to increase bilateral trade and investment deals, especially in energy sector. In February 2019, the two countries signed investment agreements amounting to $21 billion during Saudi Crown Prince Mohammed Bin Salman’s visit to Islamabad. The deals comprised $10 billion for an Aramco oil refinery and $1 billion for a petrochemical complex at the strategic Gwadar Port in Balochistan.

Pakistan’s Prime Minister Shehbaz Sharif, attending a special World Economic Forum meeting in Saudi Arabia, conducted discussions this week with Saudi Arabia’s energy, economy, planning, and environment ministers, as per his office.

During a meeting with Saudi Energy Minister Prince Abdulaziz bin Salman on Monday evening, Sharif outlined Pakistan’s efforts to attract investment in the energy sector. The Saudi delegation expressed strong interest in the energy projects presented by Sharif, according to the Prime Minister’s Office.

The proposed projects encompass the construction of new energy infrastructure, enhancements to existing facilities, a heightened emphasis on renewable energy, and the implementation of efficiency measures across Pakistan’s entire energy ecosystem, according to the statement.

Saudi Aramco

Saudi Aramco, the world’s top oil producer, has a rich history in the global energy market. Its policies influence oil prices and energy geopolitics. This acquisition follows Aramco’s previous purchase of Valvoline Inc.’s business and aligns with its expansion strategy.

Mohammed Y. Al Qahtani, Aramco Downstream President, highlighted GO’s storage capacity and growth potential, emphasizing Aramco’s commitment to expansion.

GO Pakistan

GO, a licensed oil marketing company in Pakistan operates nationwide with over 1200 retail outlets. It handles petroleum products and lubricants, boasting a vast storage network and a fleet of tank trucks for deliveries.

Aramco’s investment is expected to improve competition, service standards, and product offerings in Pakistan’s energy market. It also signifies increased foreign direct investment, driving economic growth.