Saudi Aramco on December 12, signed a definitive agreement to acquire 40 percent equity stake in Gas & Oil Pakistan Ltd. The transaction is subject to certain customary conditions, including regulatory approvals. The planned acquisition is Aramco’s first entry into the Pakistani fuels retail market, advancing the company’s strategy to strengthen its downstream value chain internationally. This transaction would enable Aramco to secure additional outlets for its refined products and further provide new market opportunities for Valvoline-branded lubricants, following Aramco’s acquisition of the Valvoline Inc. global products business in February 2023. Mohammed Y. Al Qahtani, Aramco Downstream President, said: “Our second planned retail acquisition this year aligns with Aramco’s downstream expansion strategy, with a clear path ahead for growing an integrated refining, marketing, lubricants, trading, and chemicals portfolio worldwide. GO has a significant storage capacity, high-quality assets, and growth potential, which will help launch the Aramco brand in Pakistan.”

Attock Refinery Limited (ATRL), a subsidiary of Attock Oil Company Limited, has shut down its crude distillation units temporarily as the company’s dispatch pattern remains depressed. “To manage high stocks of these products, we have shut down two of our crude distillation units temporarily to manage refinery operations,” the refinery shared, adding that it would now be operating at a throughput of about 60%. ATRL warned that if the situation persists it “would result in curtailment of crude intake from oilfields with adverse effect on associated gas as well”. Attock Refinery shared that it has also intimated to the Oil and Gas Regulatory Authority (OGRA) that surplus inventories of products are available to meet the market demand.

Auto assemblers continued to face a highly disturbing situation as year-on-year car sales plunged 53 per cent, trucks 48pc, buses 45pc, light commercial vehicles, pickups and vans 37pc, and two/three-wheelers recorded a 13pc drop during the first five months of FY24. However, brisk agricultural indicators significantly boosted the sales of tractors (Massey Ferguson and Fiat) by 98.19pc to 20,806 units during 5MFY24 from 10,498 in the same period last year.

A consortium of two companies from the UAE and China is interested in investing up to $500 million in the construction of two LNG projects in Pakistan, which include virtual and non-virtual projects of LNG terminals, supply and import. The investors involved in the consortium have started the process of discussion with Pakistani authorities. According to Ogra sources, the consortium comprising UAE company Bison Energy and China National Chemical & Engineering Company wants to set up a virtual LNG project at Kemari and a non-virtual LNG project at Port Qasim. The consortium also wants to set up an LNG project at Port Qasim and use its own distributor instead of Sui Southern or Northern Gas Supply Companies to deliver gas to consumers from the project. Sources said there was no government guarantee or capacity payments under consideration in the projects.

Suzuki Motor Corporation, the majority shareholder in Pak Suzuki Motor Company (PSMC), has offered to buy out the minority shareholders at a minimum price of Rs406 per share and delist the company from the Pakistan Stock Exchange (PSX), PSMC said. The Japanese automaker, which owns 73.09 percent of PSMC, the largest car manufacturer in Pakistan, has proposed to purchase 22.14576 million ordinary shares, representing 26.91 percent of the paid-up capital, held by the minority shareholders, PSMC said in a notice to the PSX. The company said that the operations of Pak Suzuki resulted in losses in 2019, 2020 and 2022. It has also resulted in a loss up to the third quarter of this financial year i.e. 2023. From 2019, dividends have not been paid to shareholders except for 2021, it said. "Therefore, the sponsors of the company believe that it is their responsibility to offer the minority shareholders a fair opportunity to exit so that they can make the best use of their investment in other profitable avenues," PSMC said. PSMC, on October 12, had said it will review and consider the majority shareholder's intent to purchase all outstanding shares of the company and delist from the PSX. A week later on October 19, the Board of Directors of PSMC decided to purchase all outstanding shares of the company and delist from the PSX.

Amid lukewarm response, the government declared as successful six parties/joint ventures for the award of as many exploration blocks as four other blocks did not attract any bids despite an extension in the deadline. The Petroleum Division on December 1, announced that a bid committee led by Director General Petroleum Concessions (DGPC) opened bids for onshore blocks for the grant of petroleum exploration rights. “Bids were received for six blocks”, said the Petroleum Division. United Energy Pakistan — a subsidiary of the United Energy Group listed on the Hong Kong stock exchange — stood out as the highest bidder for two blocks (100pc) while all four other blocks were secured by local and mostly state-run exploration and production companies. This included a joint venture of operator Pakistan Oilfields Ltd (40pc) with partners Pakistan Petroleum Ltd (PPL) and Oil & Gas Development Company Ltd (OGDCL) having 30pc shares each. Two other blocks were secured by OGDCL with 100pc shareholding while another block was jointly acquired by operator PPL with 70pc shareholding with the remaining 30pc stakes from OGDCL. Four others couldn’t get a single bid despite extension of deadline.