Saudi Aramco return to Philippine fuels Unioil expansion

MANILA, Philippines — Saudi oil giant Aramco has returned to the Philippines after 17 years following the closing of its strategic deal with Unioil Petroleum Philippines Inc., a move set to accelerate the latter’s expansion strategy.

Aramco, which divested its stake in Petron Corp. in 2008, now officially holds a 25-percent stake in Unioil, one of the leading fuel distributors and retailers in the Philippines.

“With Aramco’s partnership, we are confident in our ability to scale our operations, drive innovation and strengthen our leadership in the wholesale and retail fuel market,” Unioil CEO Janice Co Roxas-Chua said.

Through this tie-up, Unioil’s over 160 retail stations and four storage terminals nationwide are expected to benefit from Aramco’s extensive refining, supply and logistics network.

The deal, first announced in February, also positions Unioil to help meet the Philippines’ growing demand while fueling its growth trajectory.

“The strategic investment by Aramco is fully aligned with our ambition to be the fuel retailer of choice. It also affirms the strength of our business and the potential of the Philippine market to attract world-class partners,” Unioil president Kenneth Pundanera said.

With the deregulation of the Philippines’ petroleum industry in 1988, Unioil has since ventured into fuel trading, distribution and retailing.

Yasser Mufti, Aramco executive vice president of products and customers, said the Saudi Arabian firm’s investment in Unioil is a crucial step toward its global expansion.

“Our international expansion aims to capture additional value and enhance our participation in vibrant economies, in collaboration with established partners,” Mufti said.

In particular, Aramco intends to extend its brand, retail products and Valvoline-branded lubricants to select fuel stations across the Philippines.

Sought for insights, investment banker Juan Paolo Colet has said Aramco’s entry as a strategic investor in Unioil would strengthen the latter’s ability to compete as a major fuel retailer.

“This move could invite other global oil players who have no or limited domestic exposure to explore significant partnerships or investments in the Philippines,” Colet told The STAR.