Saudi Arab’s state-owned petroleum company Saudi Aramco agreed to acquire a 40% stake in Gas & Oil Pakistan Limited (GO), the oil giant said on Tuesday, marking a strategic expansion into the fuel retail market of Pakistan.
GO, a diversified downstream fuels, lubricants and convenience stores operator, is one of the largest retail and storage companies in the South Asian country.
GO, a major retail and storage player in South Asia dealing in various products like fuels, lubricants, and operating convenience stores, offers the Saudi oil giant new avenues to market its refined products and Valvoline-branded lubricants, a brand Aramco acquired in February 2023.
The deal, which is subject to customary closing conditions, including regulatory approvals, would allow Aramco to strengthen and diversify its downstream value chain and secure additional market opportunities globally.
“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,” Mohammed Y. Al Qahtani, President Aramco Downstream, said. “GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan.”
Greenfield refinery at the Gwadar Port
The development comes at a time when the Saudi oil giant is already in discussions with Pakistani authorities for establishing an oil refinery and a petrochemical complex in the country. Aramco is collaborating with four major Pakistani oil companies to set up a $10 billion Greenfield refinery at the Gwadar Port. The project, which was signed during Saudi Crown Prince Mohammed bin Salman’s Islamabad visit in 2019, aims for an integrated refinery petrochemical complex processing 300,000 barrels of crude daily.
This partnership signifies stronger economic bonds between Saudi Arabia and Pakistan, anticipating significant benefits like economic growth, energy stability, job creation, and societal development for Pakistan.
Last month Shell Pakistan inked an agreement with Saudi Arabia’s Wafi Energy to sell its local operations. This decision follows Shell Global’s announcement in June to exit Pakistan, selling 77% of its shares in the domestic business. Wafi Energy, a rapidly expanding gas station network and exclusive licensee of Shell Retail Network in Saudi Arabia, was established in September 2012, headquartered in Riyadh, with a paid-up capital of 3 million Saudi riyals.
Dhahran-based Saudi Aramco, officially the Saudi Arabian Oil Group or simply Aramco, is a global integrated energy and chemicals company. As of 2022, it is the second-largest company in the world by revenue. The company produces approximately one in every eight barrels of the world’s oil supply.
GO commenced its operation in 2015 after receiving approval from Pakistan’s Oil and Gas Regulatory Authority (OGRA) to sell petroleum products in Punjab. Presently, the company operates 1,000 retail outlets across Pakistan.
