Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) has entered definitive agreements to acquire a 40% shareholding in Gas & Oil Pakistan Ltd. (GO), according to a press release.

The investment marks the Saudi oil giant’s first entry into the Pakistani fuels retail market which is expected to boost its business strategy to strengthen its downstream value chain on the global scale. 

Aramco Downstream President, Mohammed Al Qahtani, said: “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.”

The stake takeover transaction is yet subject to certain customary conditions such as regulatory approvals.

Al Qahtani added: “GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan.”

The Pakistani firm is a diversified downstream fuels, lubricants, and convenience stores operator.

Meanwhile, the transaction which deal was penned on 12 December 2023 would allow Aramco to secure more outlets for its refined products and offer new market opportunities for Valvoline-branded lubricants, following the Saudi company’s acquisition of the Valvoline Inc. global products business in February 2023.

In August 2022, Aramco penned an equity purchase agreement to acquire Valvoline Global Products (VGP) for $2.65 billion.

It is worth noting that during the first nine months (9M) of 2023, the Saudi oil company achieved net profits after Zakat and tax worth SAR 354.54 billion.