Saudi Aramco Makes Landmark Entry into Pakistan’s Fuels Retail Market
In a groundbreaking move, the Competition Commission of Pakistan has given the green light to Saudi oil giant Aramco’s acquisition of a 40 percent stake in Gas & Oil Pakistan Ltd, marking Aramco’s official entry into Pakistan’s fuels retail market.
Aramco Secures Stake in Gas & Oil Pakistan Ltd.
The agreement for Aramco to acquire a 40 percent stake in Gas and Oil Pakistan Ltd., a licensed oil marketing company, was signed in December 2023.
Gas and Oil Pakistan Ltd. is a key player in the procurement, storage, sale, and marketing of petroleum products and lubricants, as well as one of the largest retail and storage companies in Pakistan.
Aramco: A Global Energy and Chemicals Powerhouse
Aramco is a major player in the global energy and chemicals industry, producing approximately one in every eight barrels of the world’s oil supply and leading in cutting-edge energy technologies.
CCP Approval Paves the Way for Aramco’s Market Entry
Aramco Asia Singapore Pte. Ltd., a wholly-owned subsidiary of Saudi Aramco, submitted the pre-merger application to the Competition Commission of Pakistan, which has now approved the acquisition of a 40 percent equity stake in Gas & Oil Pakistan Ltd.
The CCP stated, “This transaction marks Aramco’s first entry into Pakistan’s fuels retail market, underscoring its confidence in the country’s economic potential and commitment to its growth.”
Boosting Competition and Service Standards
The CCP emphasized that the acquisition would enhance competition, improve service standards, and offer consumers a wider range of high-quality products in the fuels retail market.
Moreover, the acquisition is expected to attract much-needed foreign direct investment in Pakistan’s energy sector, contributing to the country’s economic growth and development.
Strengthening Bilateral Ties with Saudi Arabia
The investment deals between Pakistan and Saudi Arabia, including the significant agreements with Aramco, highlight the strong trade, defense, and cultural ties between the two countries.
The recent meetings between Pakistan’s Prime Minister and Saudi officials demonstrate a mutual interest in furthering cooperation in energy projects, building new infrastructure, focusing on renewable energy, and enhancing efficiency in Pakistan’s energy ecosystem.
This collaboration reflects the commitment of both countries to boost bilateral trade and investment, with Saudi Arabia reaffirming its commitment to expedite a $5 billion investment package.