December 11 2023

Aramco Expands Global Footprint with Strategic Investment in Pakistan

Fueling Innovation and Growth in the Pakistani Energy Sector

Aramco, a global leader in energy and chemicals, has recently acquired a 40% stake in Gas & Oil Pakistan Ltd (GO), marking its inaugural venture into the Pakistani fuels retail market. This strategic move, part of Aramco’s downstream expansion strategy, signifies a major step in international market penetration.

GO, a leading player in Pakistan's energy sector, operates across various domains, including fuel retail, lubricants, and convenience stores. This acquisition opens up new avenues for Aramco to distribute its refined products and expand the market reach of Valvoline-branded lubricants, following its acquisition of the Valvoline Inc. global products business earlier in February.

The agreement, which is subject to customary conditions and regulatory approvals, aligns with Aramco’s objective to bolster its global downstream value chain. Mohammed Y. Al-Qahtani, President of Aramco Downstream, remarked on the acquisition as a key component of their global strategy, emphasizing the integration of refining, marketing, lubricants, trading, and chemicals.

He further noted that GO’s substantial storage capacity and high-quality assets present a promising opportunity to introduce the Aramco brand in Pakistan, a market with significant growth potential.

This development follows the 2019 agreement between Pakistan and Saudi Arabia, which saw the countries signing investment deals worth $21 billion, including a substantial commitment from Aramco for building an oil refinery and a petrochemical complex in Pakistan. The proposed refinery aims to process up to 450,000 barrels of crude oil daily.

Aramco, known for producing about one-eighth of the world’s oil supply, continues to be at the forefront of energy innovation and development, now extending its influence into the burgeoning Pakistani market.