Aramco will enter the Philippines in yet another strategic downstream deal as part of the Saudi oil giant’s efforts to expand its retail and downstream offerings in Asia.
The world’s biggest oil firm on Thursday signed definitive agreements to buy a 25% equity stake in one of the largest petroleum companies in the Philippines, Unioil Petroleum Philippines.
Aramco plans to capitalize on the expected growth of the high-value fuels market in the Philippines with the planned acquisition, which remains subject to customary closing conditions, including regulatory approvals.
The deal is “further progress in Aramco’s strategic downstream expansion and growth of its global retail network, which aims to secure additional outlets for its refined products,” the Saudi company said.
Yasser Mufti, Aramco Executive Vice President of Products & Customers, commented,
“Our international expansion aims to capture additional value and enhance our participation in vibrant economies, in collaboration with established partners.”
The planned deal in the Philippines, one of the biggest economies in Southeast Asia, follows Aramco’s previous retail acquisitions in Chile and Pakistan.
In recent years, the Saudi oil giant has been pursuing deals to expand its international downstream presence, especially in demand centers such as Asia.
Saudi Aramco continues to be on the lookout for acquisition opportunities in the downstream and LNG, Mufti said in September 2024.
In 2023, Aramco entered Pakistan’s downstream market by acquiring a 40% stake in Gas & Oil Pakistan Ltd, one of the country’s largest retail and storage companies.
Earlier in 2023, Aramco announced two major refinery and petrochemical deals in China, which not only give the world’s largest oil firm a share of the Chinese downstream market but also an additional export outlet for 690,000 bpd of Saudi crude in China.
At the same time, Aramco is boosting cooperation with Chinese petrochemicals giants in the refining and petrochemical sectors in China and Saudi Arabia.
By Tsvetana Paraskova for Oilprice.com
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