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Saturday, July 20, 2024

Saudi Aramco Acquires Stakes in Pakistan’s Fuel Market

Saudi Aramco makes strategic entry into Pakistan's fuels retail market, acquiring a 40% stake in Gas & Oil Pakistan Ltd., signaling a significant move in its downstream expansion and international value chain.

Saudi Aramco, a global integrated energy and chemicals company, has entered into definitive agreements to acquire a 40 percent equity stake in Gas & Oil Pakistan Ltd. (GO). The strategic move, signed at Dhahran, Saudi Arabia, marks Aramco’s inaugural venture into the Pakistani fuels retail market, aligning with its downstream expansion strategy to fortify the international downstream value chain.

The planned acquisition, contingent on customary conditions and regulatory approvals, positions Aramco to secure additional outlets for its refined products and introduces new market opportunities for Valvoline-branded lubricants. This follows Aramco’s earlier acquisition of Valvoline Inc.’s global products business in February 2023.

Mohammed Y. Al Qahtani, Aramco Downstream President, emphasized the significance of the acquisition, stating, “GO has a significant storage capacity, high-quality assets, and growth potential, which will help launch the Aramco brand in Pakistan.” GO, with over 1,100 retail outlets, oil and storage terminals nationwide, and a fleet of 800 tank trucks, stands as one of Pakistan’s largest retail and storage companies.

GO’s Pioneering Move into Electric Vehicle Charging

Gas & Oil Pakistan is not only a major player in traditional fuels but also a trailblazer in embracing new energy trends. It holds the distinction of being the first Oil Marketing Company (OMC) in Pakistan to introduce electric vehicle (EV) charging stations.

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The initial EV charging station has been installed at a company-owned and operated retail outlet in Lahore. GO plans to expand this initiative, with more EV charging stations slated for installation at other retail outlets along highways and motorways across Pakistan.

In addition to the retail venture, discussions between Pakistan authorities and Saudi Aramco are underway for a state-of-the-art, deep conversion refinery in Pakistan. As the world closely watches the global energy landscape, Aramco’s multifaceted approach, encompassing retail expansion, forays into alternative energy infrastructure, and potential refinery collaboration, underscores its commitment to shaping the future of the energy sector.