Aramco, a global energy and chemicals giant, has entered the Philippines' retail fuel market by signing definitive agreements to acquire a 25% equity stake in Unioil Petroleum Philippines, a leading petroleum company in the nation.

The acquisition, announced on February 19, is subject to customary regulatory approvals and closing conditions. This strategic investment provides Aramco with a significant foothold in a rapidly expanding market and secures additional outlets for its refined products.

Unioil, established in 1966, has evolved into a diversified downstream fuels operator and one of the fastest-growing retail, wholesale, and storage companies in the Philippines. The company boasts a robust network of 165 retail stations located across the country, complemented by four storage terminals. This existing infrastructure provides a strong foundation for Aramco's expansion plans.

Yasser Mufti, Aramco's Executive Vice President of Products & Customers, highlighted the significance of the deal: "This investment marks another stride in our global retail network expansion strategy. We are eager to introduce Aramco's high-quality products and services to Filipino consumers. Our international growth strategy focuses on capturing additional value and strengthening our presence in dynamic economies through collaborations with established partners. We are thrilled to partner with Unioil, a key player in the rapidly growing Philippine fuels market, as we embark on this exciting new chapter."

Following the completion of the acquisition, Aramco plans to leverage Unioil's existing network to introduce its brand, competitive retail offerings, and Valvoline-branded lubricants to select retail stations across the Philippines. This strategic move will not only enhance the customer experience at Unioil stations but also provide Filipino consumers with access to Aramco’s globally recognized products and services.

This latest acquisition follows Aramco's previous successful retail ventures in Chile and Pakistan, demonstrating the company's commitment to expanding its global footprint and diversifying its revenue streams. The Philippines, with its burgeoning economy and increasing demand for high-quality fuels, represents a key market for Aramco's strategic growth ambitions. The partnership with Unioil, a well-established and respected player in the Philippine market, positions Aramco for significant success in this dynamic region. The move is expected to bring increased competition and innovation to the Philippine fuel market, ultimately benefiting consumers.

The agreement was formalized in a signing ceremony attended by key executives from both companies. Fai Aldossary, Managing Director of Aramco Asia Singapore, and Janice Co Roxas-Chua, CEO of Unioil, signed the agreement, cementing the partnership.