Aramco, the Saudi state owned Oil and Gas giant, has decided to enter the Pakistani market. The company has signed definitive agreements to acquire a 40 per cent equity stake in Gas & Oil Pakistan Ltd (GO).
A statement released on the official twitter account of the company from Mohammed Y. Al Qahtani, Aramco Downstream President, 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 a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan.”
The transaction is subject to certain customary conditions, including regulatory approvals. Officially the worth of the transaction has not been disclosed by both sides but sources suggest that, the transaction was sealed for about $100m.
The transaction would enable Aramco to secure additional outlets for its refined products and further provide new market opportunities for Valvoline-branded lubricants, following Aramco’s acquisition of the Valvoline Inc global products business in February this year.
Earlier Aramco had shown interest in taking over Shell Pakistan’s retail business which was later acquired by Wafi Energy, another Saudi firm.