Saudi Aramco to Acquire 40% Stake in Pakistan’s GO Petroleum.
In a significant development, energy giant Aramco has acquired a 40% stake in Gas & Oil Pakistan Ltd. (GO), expanding its international footprint and entering the Pakistani fuels market for the first time.
This strategic move strengthens Aramco’s downstream value chain and aligns with its goal of expanding its global reach.
GO, a leading downstream fuels, lubricants, and convenience store operator in Pakistan, boasts a network of over 1,100 retail outlets serving the country’s fuel needs.
This partnership positions Aramco to leverage GO’s established presence and expertise to gain a foothold in the Pakistani market.
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The agreement is subject to regulatory approvals, but upon completion, it will mark a pivotal moment for both companies. Aramco will gain access to a new and growing market, while GO will benefit from Aramco’s vast resources and expertise.
This collaboration is expected to contribute to the development of Pakistan’s energy sector and provide Pakistani consumers with greater access to high-quality fuels and services.
“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.
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Mohammed Y. Al Qahtani, President of Aramco Downstream, expressed positive sentiment regarding the company’s recent acquisition of a 40% stake in Gas & Oil Pakistan Ltd. (GO). He stated that this strategic move aligns with Aramco’s downstream expansion strategy, fostering the growth of its global portfolio in refining, marketing, lubricants, trading, and chemicals. Highlighting GO’s strong storage capacity, high-quality assets, and significant growth potential, Al Qahtani expressed confidence in leveraging these factors to effectively launch the Aramco brand in Pakistan.
This positive outlook resonated with economic experts who lauded the development as a beneficial step for the cash-strapped South Asian country.
The acquisition is expected to contribute positively to Pakistan’s economy by providing increased access to high-quality fuels and services, potentially stimulating economic growth and creating new job opportunities.
While attracting foreign direct investment (FDI) inflows have remained a critical hurdle for Pakistan, the country witnessed a modest increase in the first four months of the current fiscal year (FY24).
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Between July and October, FDI inflows reached $525 million, marking a $35 million improvement compared to the $490 million received during the same period in the previous fiscal year (FY23).
This growth, although encouraging, underscores the persistent challenges Pakistan faces in attracting substantial FDI.
To address this issue and accelerate economic development, the government will need to implement effective policies that create a more favorable investment environment for foreign companies.
Marking its first foray into the Pakistani fuels retail sector, Aramco announced a significant acquisition of a 40% stake in Gas & Oil Pakistan Ltd. (GO). This strategic move builds upon Aramco’s recent acquisition of Valvoline Inc.’s worldwide products division in February 2023, further solidifying its downstream expansion strategy.
The GO acquisition provides Aramco with crucial access to new market opportunities for both its refined products and Valvoline-branded lubricants.
As one of Pakistan’s leading downstream fuels, lubricants, and convenience store operators, GO boasts a strong storage infrastructure and established presence within the country.
This partnership enables Aramco to leverage GO’s existing network and expertise, accelerating its entry into the Pakistani fuels market and offering consumers access to high-quality products and services.
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