Aramco to acquire 40% stake in Gas & Oil Pakistan Ltd.

Aramco, a global leader in integrated energy and chemicals, has announced the signing of definitive agreements to acquire a 40% equity stake in Gas & Oil Pakistan Ltd. (GO), marking its first foray into the Pakistani fuels retail market. This strategic move aligns with Aramco’s objective to strengthen its international downstream value chain.

GO is a prominent player in Pakistan’s energy sector, operating as a diversified downstream fuels, lubricants, and convenience store operator. It stands as one of the largest retail and storage companies in the country. The transaction, which is subject to customary conditions including regulatory approvals, represents a significant expansion of Aramco’s global footprint.

Strategic implications of the acquisition

The acquisition is a pivotal step for Aramco, enabling the company to secure additional outlets for its refined products. It also opens new market opportunities for Valvoline-branded lubricants, following Aramco’s acquisition of the Valvoline Inc. global products business in February 2023.

“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 significant storage capacity, high-quality assets, and growth potential, which will help launch the Aramco brand in Pakistan,” said Mohammed Y. Al Qahtani, Aramco Downstream president.

The move into Pakistan’s market is a strategic choice, given the country’s growing energy needs and potential for market expansion. Pakistan’s retail fuel market includes several major players, both local and international. These include Pakistan State Oil (PSO), Shell Pakistan, Total Parco Pakistan Limited, and Attock Petroleum Limited, among others. In November, Shell announced that it was selling its 77.42% majority interest in Shell Pakistan Limited to Wafi Energy LLC, a wholly-owned affiliate of Asyad Holding Group, a prominent player in the Kingdom of Saudi Arabia’s fuel retail sector. 

Shell’s decision marks a pivotal shift in the country’s energy sector landscape. Shell Pakistan has been in the country for 75 years and has a substantial retail footprint and a strong lubricants business. The transaction is expected to be completed in the fourth quarter of 2024.