Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, has signed definitive agreements to acquire a 25% equity stake in Unioil Petroleum Philippines, Inc. This strategic investment marks Aramco’s re-entry into the Philippine energy sector after nearly two decades, aiming to capitalize on the anticipated growth of the country’s high-value fuels market.
Saudi Aramco: A Global Energy Leader
Founded in 1933, Saudi Aramco has evolved into the world’s largest oil producer and exporter, managing over 100 oil and gas fields in Saudi Arabia. The company operates the world’s largest single hydrocarbon network, the Master Gas System, and maintains the largest daily oil production globally. Aramco’s operations span exploration, production, refining, distribution, shipping, and marketing, solidifying its position as a global energy leader.
Unioil Petroleum Philippines: A Pioneering Force
Established in 1966, Unioil Petroleum Philippines, Inc. has been a pioneering force in the Philippine petroleum industry. The company operates a network of 165 retail stations and four storage terminals across the country. Unioil’s diversified operations include retail service stations, wholesale fuels trading, lubricants blending and distribution, specialty oils marketing, and bitumen distribution. Notably, Unioil is recognized for its commitment to environmental sustainability, being the sole provider of a complete line of Euro 5-compliant fuels in the Philippines, setting the industry benchmark for cleaner emissions.
Strategic Implications of the Acquisition
This acquisition aligns with Aramco’s strategic downstream expansion and growth of its global retail network. By partnering with Unioil, Aramco aims to introduce its high-quality products and services, including Valvoline-branded lubricants, to the Philippine market. The investment represents a significant milestone in Aramco’s international expansion efforts, following similar retail acquisitions in Chile and Pakistan.
Yasser Mufti, Aramco’s Executive Vice President of Products & Customers, stated, “This investment represents another step forward in our global strategy to expand Aramco’s retail network, and we look forward to introducing Aramco’s high-quality products and services to customers in the Philippines.”
Unioil’s Chief Executive Officer, Janice Co Roxas-Chua, expressed confidence in the partnership, noting that it will accelerate Unioil’s growth and development, further innovating and strengthening its position as a leader in the wholesale and retail fuels market.
Aramco’s strategic investment in Unioil Petroleum Philippines signifies a robust partnership poised to leverage the growing energy demand in the Philippines. This collaboration is expected to enhance the availability of high-quality fuel products and services in the country, contributing to the advancement of the Philippine energy sector.