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Brix Lelis - The Philippine Star
February 21, 2025 | 12:00am
MANILA, Philippines — Saudi oil giant Aramco is returning to the Philippine market after nearly two decades, this time via a buyout of a 25-percent stake in the Co family-led Unioil Petroleum Philippines Inc.
In separate statements, both parties disclosed that they signed definitive agreements regarding Aramco’s strategic investment, subject to closing conditions that include regulatory approvals.
Financial details of the deal were not immediately made available.
Aramco, the state-run oil company of the world’s largest oil exporter Saudi Arabia, said the planned acquisition aims to capitalize on growth opportunities in the “high-value” fuel market in the Philippines.
“This investment represents another step forward in our global strategy to expand Aramco’s retail network,” 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,” Mufti added.
In particular, the Saudi Arabian firm plans to extend its brand, retail products and Valvoline-branded lubricants to select fuel stations across the Philippines.
“We are delighted to embark on the next stage of this journey with Unioil, a dynamic player in the fast-growing Philippine fuels market,” Mufti said.
Unioil, which has a network of over 160 retail stations and four storage terminals nationwide, said Aramco’s investment marks a major milestone in the company’s 58-year history.
“We are confident that this will equip ourselves in accelerating our growth and development, further innovate and strengthen our position as a leader in the wholesale and retail fuels market,” Unioil CEO Janice Co Roxas-Chua said.
Unioil president Kenneth Pundanera, for his part, said the deal aligns with the company’s ambition of becoming the “fuel retailer of choice.”
With the deregulation of the country’s petroleum industry in 1988, Unioil has since ventured into fuel trading, distribution and retailing, offering a complete line of Euro-5 compliant fuels to consumers.
Asked for insights, China Bank Capital Corp. managing director Juan Paolo Colet said Aramco’s entry as a strategic investor is poised to strengthen Unioil’s ability to expand and compete as a major fuel retailer.
“Aramco’s return to the local petroleum market also demonstrates optimism and conviction about the economic prospects of the country,” Colet told The STAR.
“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.
In 2008, Aramco sold its 40 percent stake in Petron Corp. to London-based investment fund manager Ashmore Group for $550 million.
