Aramco back in PH, to buy 25% of Unioil
MANILA, Philippines — Saudi oil giant Aramco is making its way back to Philippine shores through a planned acquisition of a 25-percent stake in Unioil Petroleum.
This move came almost 17 years after Aramco exited Petron Corp.
Aramco is known as one of the leading integrated energy and chemical companies worldwide, while Unioil is a major petroleum player in the local sector.
READ: Saudi Aramco to re-enter PH market via Unioil stake acquisition
In separate statements on Thursday, both parties disclosed that they entered into definitive agreements regarding Aramco’s purchase of a 25 percent interest in Unioil.
No target timeline has been disclosed yet, as the transaction remains subject to closing conditions and regulatory approvals.
Aramco said it wanted to invest in the country again to cash in on the “anticipated growth of the high-value fuels market in the Philippines.”
“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,” said Yasser Mufti, Aramco executive vice president of products and customers.
“Our international expansion aims to capture additional value and enhance our participation in vibrant economies, in collaboration with established partners. We are delighted to embark on the next stage of this journey with Unioil, a dynamic player in the fast-growing Philippines fuels market,” the official said.
Janice Co Roxas-Chua, chief executive of Unioil, welcomed Aramco as a new partner, saying this could further “accelerate” the group’s growth.
Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., also believed that Aramco’s presence in Unioil would “better position Unioil for expansion and competition as a major fuel retailer.”
Unioil has been in the market since 1966, with a network of 165 retail stations and four storage terminals.
Colet said Aramco’s comeback in the local market signals confidence in the Philippine economy.
“Moreover, this move could invite other global oil players who have no or limited domestic exposure to explore significant partnerships or investments in the Philippines,” he added.
