File photo. Karen Bleier—AFP
Saudi oil giant Aramco on Tuesday announced it has signed “definitive” agreements to acquire a 40 percent equity stake in the private Gas & Oil (GO) Pakistan Limited, which was established nearly 10 years ago.
In a statement, Aramco said the planned acquisition was its first entry into the Pakistani fuels retail market, adding it advanced the company’s strategy to strengthen its downstream value chain internationally. “This 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 2023,” it added.
“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,” said Mohammed Y. Al Qahtani, Aramco Downstream president. “GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan,” he added.
Confirming the development, GO—a diversified downstream fuels, lubricants and convenience stores operator that is one of the largest retail and storage companies in Pakistan—said the transaction was subject to certain customary conditions, including regulatory approvals.
While neither side disclosed the value of the transaction, local media reported it was believed to be around $100 million. Prior to inking the deal with GO, Aramco had shown an interest in taking over Shell Pakistan’s retail business. However, that was acquired by Wafi Energy—another Saudi firm.
The deal comes as the Special Investment Facilitation Council (SIFC)—a civil-military body formed to attract foreign direct investment—has ramped up efforts to facilitate ease of doing business through a “one window” operation to help bolster the country’s struggling economy.