In 2025, Saudi Aramco has significantly strengthened its footprint in Pakistan’s energy sector through a landmark retail acquisition and ongoing negotiations for a multibillion-dollar oil refinery project. These moves align closely with Saudi Vision 2030 and Pakistan’s long-term energy security strategy.
Aramco Acquires 40% Stake in Gas & Oil Pakistan (GO)
Deal Details
Aramco signed a definitive agreement in December 2023 to acquire a 40% equity stake in Gas & Oil Pakistan Ltd. (GO). The transaction was officially finalized on May 31, 2024, after receiving approval from the Competition Commission of Pakistan (CCP).
About Gas & Oil Pakistan
GO is among Pakistan’s fastest-growing Oil Marketing Companies (OMCs), operating:
1,200+ fuel retail outlets nationwide
Fuel terminals and storage facilities
Lubricant marketing and a growing convenience store network
Strategic Importance
This investment marks Aramco’s first direct entry into Pakistan’s downstream retail fuel market. Through GO’s extensive network, Aramco-branded fuels and Valvoline lubricants are now being introduced across Pakistan.
Estimated deal value: ~USD 100 million
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, proposed for Gwadar or Hub (Balochistan). The planned refinery capacity is estimated at 250,000–300,000 barrels per day.
Incentives Under Discussion
To ensure viability, Aramco is negotiating:
20-year tax holiday
Import duty exemptions
Guaranteed 12–15% Internal Rate of Return (IRR)
Why It Matters
If approved, the refinery would:
Reduce Pakistan’s dependence on imported refined fuels
Strengthen national energy security
Create thousands of local jobs
Boost industrial development in Balochistan
Part of a Broader Saudi–Pakistan Investment Push
Aramco’s expansion fits into a wider Saudi investment framework. In October 2024, Saudi Arabia signed 27 MOUs worth USD 2 billion with Pakistan across energy, mining, agriculture, and technology sectors.
Globally, Aramco is also expanding downstream operations, including stakes in China’s Hengli Petrochemical and a 20-year LNG supply deal with NextDecade (USA).
Current Status (Mid-2025)
Project Status Estimated Value
40% Stake in GO Finalized, rollout ongoing USD 100 million
Mega Oil Refinery Under negotiation USD 10–12 billion
Fuel & Lubricant Distribution Active via GO outlets Integrated
Conclusion
Aramco’s expansion in Pakistan in 2025 marks a turning point in bilateral economic and energy cooperation. With a strong foothold in fuel retail through GO and the potential mega refinery on the horizon, Aramco is poised to play a transformative role in Pakistan’s energy future—strengthening supply security, attracting foreign investment, and deepening Saudi–Pakistan strategic ties.
