Credit By: Anadolu Ajansi
A deal has been reached for Saudi Arabian Oil Company (Aramco) to purchase a significant 40% equity position in Gas & Oil Pakistan Ltd. (GO), one of Pakistan’s giant oil and gas corporations. Aramco Executive Vice President Yasser Mufti and GO CEO Khalid Riaz signed the deal, representing Aramco’s first entry into Pakistan’s retail fuels industry.
Strengthening Downstream Value Chain
The calculated action aligns with Aramco’s overarching goal of strengthening its downstream value chain globally. Aramco hopes to increase its market share in Pakistan’s retail fuels industry by acquiring a sizeable stake in GO. Aramco’s downstream business strategy, which includes global trade, lubricants, chemicals, marketing, and refining, consists of this acquisition.
Growth Prospects for the Market
In addition to entering Pakistan’s retail petroleum market, the acquisition gives Aramco more distribution channels for its refined products. Additionally, the arrangement creates additional market prospects for lubricants bearing the Valvoline name after Aramco acquired Valvoline Inc.’s worldwide products division in February 2023.
Downstream President’s Perspective
The importance of this transaction in growing Aramco’s integrated refining, marketing, lubricants, trading, and chemicals portfolio was emphasized by Mohammed Y. Al Qahtani, head of Aramco’s downstream division. The acquisition of GO’s significant storage capacity and premium assets is anticipated to be crucial in introducing the Aramco brand in Pakistan. The decision demonstrates Aramco’s dedication to strategic growth.
About Pakistan Gas & Oil Ltd.
Gas & Oil Pakistan Ltd. (GO) operates lubricants, convenience stores, and various downstream fuels. GO is one of the biggest businesses in Pakistan, having a solid presence in the retail and storage industries. The corporation is a compelling option for Aramco’s entry into the Pakistani market due to its substantial storage capacity and expansion possibilities.
In conclusion, Aramco made a calculated strategic move into Pakistan’s fuel retail business by acquiring a 40% share in Gas & Oil Pakistan Ltd. This move allows Aramco to improve its downstream operations and investigate new market potential.
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