In a significant announcement regarding its expansion of international downstream operations and portfolio diversification, Saudi Aramco revealed the company’s acquisition of a 40 percent stake in Gas & Oil Pakistan.
The move signifies a strategic move to enter the fuels retail market in Pakistan. In addition, this acquisition is in line with Aramco’s broader downstream expansion strategy.
GO is a prominent player in Pakistan’s retail and storage industry, and by acquiring a stake in the company, Aramco gains fresh opportunities to promote its refined products and Valvoline-branded lubricants. Valvoline is a brand that Aramco recently acquired.
Read more: Aramco’s net income in the first quarter increased by 82 percent
Clear path ahead
Mohammed Y. Al Qahtani, Aramco Downstream President, 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. Additionally, GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan.”
Greenfield refinery
Furthermore, Aramco’s involvement in Pakistan goes beyond the aforementioned acquisition. The company is actively engaged in a partnership with four prominent Pakistani oil companies to establish a Greenfield refinery at the strategically located Gwadar Port, with an estimated investment of $10 billion. This ambitious project was agreed upon during Crown Prince Mohammed bin Salman’s visit to Islamabad in 2019. The envisioned complex aims to integrate a refinery and petrochemical facilities, with a minimum capacity to process 300,000 barrels of crude oil per day. This collaboration highlights the deepening economic ties between Saudi Arabia and Pakistan and is expected to have significant positive impacts on the Pakistani economy, including fostering growth, ensuring energy security, creating employment opportunities, and promoting social progress.
Several components
The integrated refinery petrochemical complex will encompass various essential elements, such as marine infrastructure, a petrochemical complex, storage facilities for both crude oil and refined products, refining utilities, and an extensive pipeline network. Also, this project aligns with Pakistan’s comprehensive strategy to enhance its refining capabilities and decrease reliance on imported fuels.
Furthermore, this undertaking is in line with Saudi Arabia’s Vision 2030, a comprehensive plan aimed at diversifying the country’s economy beyond oil.
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