Saudi Aramco, the world’s largest oil company, has signed a deal to acquire a 25% stake in Unioil Petroleum Philippines, a major petroleum firm in the Philippines. This move is part of Aramco’s strategy to expand its retail and downstream operations in Asia.
The agreement, announced Thursday, aims to capitalize on the expected growth of the high-value fuels market in the Philippines. The acquisition is still subject to regulatory approvals and other customary closing conditions.
Aramco views the deal as a step forward in its broader strategy to grow its global retail network and expand its downstream business. “This is another key milestone in our efforts to secure more outlets for our refined products,” the company said in a statement.
Yasser Mufti, Executive Vice President of Products & Customers at Aramco, emphasized the importance of international expansion. “Our goal is to capture additional value and increase our presence in dynamic economies, working alongside strong local partners.”
This acquisition marks Aramco’s continued push into Southeast Asia, following similar retail deals in countries like Chile and Pakistan. The Philippines, with its growing economy, is a key part of Aramco’s focus on high-demand markets in Asia.
Aramco has been actively pursuing expansion in the downstream sector, particularly in markets like Asia where demand for energy products is rising. In 2023, the company entered Pakistan’s retail market by purchasing a 40% stake in Gas & Oil Pakistan Ltd, one of the country’s largest fuel and storage companies.
Earlier in 2023, Aramco also secured significant refinery and petrochemical deals in China. These partnerships not only expanded its footprint in China’s refining sector but also provided an additional outlet for 690,000 barrels per day of Saudi crude oil.
Additionally, Aramco has been increasing its collaborations with major Chinese petrochemical companies in both refining and petrochemical sectors, further strengthening its position in both China and Saudi Arabia.
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