Saudi Aramco announced on Wednesday that it has reached an agreement to acquire a 25 percent stake in Unioil Petroleum Philippines, signifying its entry into the Philippine retail market.
The oil giant stated that the agreement, which is contingent upon standard closing conditions, is part of its strategy to expand its global retail network.
Saudi Aramco has a notable history with the Philippines, having previously held a 40 percent stake in Petron Corporation, a key player in the local oil industry, before divesting in 2008. After more than 15 years away from the market, the company is now looking to re-establish its presence, driven by renewed interest in investment opportunities within the energy sector.
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Yasser Mufti, Aramco executive vice president of Products & Customers, said: “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. 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.”
Broader strategy focus
Unioil Petroleum, owned by the Co family, is an independent oil company in the Philippines, operating 165 retail locations and engaging in the retail, wholesale, and storage of downstream fuels. Since the late 1990s, Unioil has been active in the Philippine oil market, following the country’s deregulation of the industry.
Saudi Aramco’s acquisition of a stake in Unioil is part of its broader strategy to expand its global retail network, aligning with the company’s goals to diversify operations and explore emerging markets, especially in the Asia-Pacific region, where energy demand is on the rise. If the deal is finalized, it could lead to further investments by Saudi Aramco in the Philippines, including ventures in renewable energy, as the company adapts to the global energy transition.
