Mumbai: Aramco is entering Pakistan’s downstream market by acquiring a 40 per cent equity stake in Gas & Oil Pakistan Ltd. The mega west coast refinery project, in which the Saudi oil giant is a partner, has faced a long delay.
GO Pakistan is a diversified downstream fuels, lubricants and convenience stores operator. It is one of the largest retail and storage companies in Pakistan.
The proposed acquisition is Aramco’s foray into the Pakistani fuels retail market. The company added that it will advance its strategy to strengthen the downstream value chain internationally.
Further, the transaction is expected to help Aramco to secure additional outlets for its refined products and provide new market opportunities for Valvoline-branded lubricants, following the acquisition of the Valvoline’s global products business in February 2023.
Even as Aramco has made inroads into Pakistan, its mega investments in India are yet to bear fruit despite the strong ties between India and Saudi Arabia. One such project that has been delayed is the proposed integrated refinery and petrochemicals complex at Ratnagiri in Maharashtra.
In 2018 an Indian consortium consisting of IOC, BPCL and HPCL and Saudi Aramco signed a memorandum of understanding to jointly develop and build the complex. Subsequently, it was announced that Abu Dhabi National Oil Company would join the project.
The project, with an estimated investment of over Rs 3 lakh crore, has not yet taken off due to opposition from a section of the local opposition.
