Aramco’s Expansion in Pakistan: In 2025, Aramco significantly advanced its presence in Pakistan’s energy sector through a major retail acquisition and continued pursuit of a multibillion-dollar refinery project. This expansion aligns with Saudi Arabia’s Vision 2030 and Pakistan’s energy security goals.
40% Stake in Gas & Oil Pakistan (GO)
Acquisition Details
- In December 2023, Aramco signed a definitive agreement to acquire a 40% equity stake in Gas & Oil Pakistan Ltd. (GO).
- The transaction was finalized on May 31, 2024 after receiving regulatory clearance from the Competition Commission of Pakistan.
Read More: Aramco Opens Its First Fuel Station in Pakistan
About GO
- GO is one of Pakistan’s fastest-growing oil marketing companies.
- It operates over 1,200 fuel retail outlets, along with terminals and storage infrastructure.
- It also markets lubricants and is developing its convenience store network.
Strategic Purpose
- Aramco’s investment allows it to enter Pakistan’s downstream retail market for the first time.
- Through this stake, Aramco-branded fuels and Valvoline lubricants will now be distributed in Pakistan via GO’s network.
Investment Value
- The deal is estimated at approximately USD 100 million, as reported by regional media.
Mega Refinery Project in Balochistan (Oil City)
Project Overview
- Aramco is also exploring a USD 10–12 billion investment in a mega oil refinery project in Balochistan, either in Gwadar or Hub.
- The refinery is expected to have a capacity of 250,000–300,000 barrels per day.
Government Incentives
- Aramco is negotiating with the Pakistani government for the following:
- 20-year tax holiday
- Exemption from import duties
- Guaranteed 12–15% internal rate of return (IRR)
- These conditions are aimed at making the project financially viable and attractive to foreign investors.
Strategic Significance
- The refinery will reduce Pakistan’s reliance on imported refined fuels.
- It will support energy security, enhance industrial capacity, and create thousands of local jobs.
Read More: Saudi Aramco to Open Its First Gas Station in Pakistan
Broader Saudi Investment Framework
Economic Partnerships
- Aramco’s moves are part of a broader wave of Saudi investments in Pakistan.
- In October 2024, Saudi Arabia signed 27 Memorandums of Understanding (MOUs) with Pakistan worth USD 2 billion, covering sectors like energy, agriculture, mining, and technology.
Additional Energy Projects
- Aramco is also active in other global downstream and LNG initiatives, such as:
- Acquiring a 10% stake in China’s Hengli Petrochemical
- Signing a 20-year LNG supply deal with NextDecade in the United States
Economic and Energy Impact
For Pakistan
- Improved fuel availability and stable prices through local distribution
- Increased foreign direct investment and employment generation
- Infrastructure development in underdeveloped regions like Balochistan
For Aramco
- Strategic expansion into a high-growth South Asian market
- Brand visibility across Pakistan via GO outlets
- Diversified downstream portfolio, reducing reliance on domestic markets
Current Status and Future Outlook
| Project or Initiative | Status (as of mid-2025) | Estimated Value |
|---|---|---|
| Stake in GO Pakistan | Finalized, operational rollout ongoing | USD 100 million |
| Mega Oil Refinery (Oil City) | Under negotiation, incentives under review | USD 10–12 billion |
| Lubricant and Fuel Distribution | Product integration in GO stations started | Integrated via GO |
Conclusion
Aramco’s 2025 expansion in Pakistan is a turning point in bilateral economic relations and energy collaboration. With its investment in GO, Aramco now has a strong foothold in Pakistan’s retail fuel sector. The upcoming mega refinery, if finalized, could reshape Pakistan’s energy landscape. Together, these projects promise to strengthen both countries’ economic resilience and energy independence in the years ahead. Stay tuned with Bloom Pakistan
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