ISLAMABAD: Saudi Oil giant Aramco formally entered Pakistan’s retail market with an estimated investment of about $100 million by acquiring a 40 per cent stake in Gas & Oil Pakistan Ltd (GO) — a private entity established almost a decade ago.

GO announced in a statement on Tuesday that Aramco, one of the world’s leading integrated energy and chemicals companies, signed definitive agreements to acquire a 40pc equity stake“ in GO.

Although both sides did not disclose the transaction’s worth, insiders said the transaction was sealed for about $100m.

GO, a diversified downstream fuels, lubricants and convenience stores operator, has a large fleet of retail outlets and storage.

“The transaction is subject to certain customary conditions, including regulatory approvals”, the statement said, adding that the acquisition is Aramco’s first entry into the Pakistani fuels retail market, advancing the strategy to strengthen its downstream value chain internationally.

Aramco had earlier shown interest in taking over Shell Pakistan’s retail business which was later acquired by Wafi Energy — another Saudi firm.

The statement said the transaction would enable Aramco to secure additional outlets for its refined products and further provide new market opportunities for Valvoline-branded lubricants, following Aramco’s acquisition of the Valvoline Inc global products business in February this year.

The investment marks the beginning of Saudi investment in the country and may indicate larger investments in the sector by the global giant.

GO was established by Khalid Riaz, who has been in the oil business for almost four decades through a large fleet of oil tankers. The businessman is considered close to PMLN.

Aramco was reportedly advised in the transaction by Standard Chartered Bank on the deal.

Mohammed Y. Al Qahtani, Aramco Downstream President, said: “Our second announcement of a 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. GO has a material storage footprint, high-quality assets and growth potential, and the acquisition is expected to help launch the Aramco brand in Pakistan.”