Petroleum refineries company Aramco has signed agreements to acquire a 25% stake in Unioil Petroleum Philippines, a downstream fuels operator established in 1966.

The acquisition, pending regulatory approvals, is part of Aramco's strategy to expand its downstream operations and retail network globally.

The move aims to tap into the growing high-value fuels market in the Philippines.

Unioil is a prominent player in the Philippines' downstream sector, boasting 165 retail stations and four storage terminals.

The company is the sole provider of a complete line of Euro 5-compliant fuels in the Philippines.

Unioil started in lubricants manufacturing and distribution, before venturing into fuels trading, distribution and retailing following the deregulation of the petroleum industry in 1998.

Aramco's acquisition aligns with its previous retail expansions in Chile and Pakistan, part of its commitment to broadening its global footprint.

Upon completion, Aramco plans to introduce its brand and Valvoline-branded lubricants to select Unioil retail stations.

This expansion is part of Aramco's strategy to secure additional outlets for its refined products and enhance its competitive retail offerings.

Aramco executive vice-president of products & customers Yasser Mufti 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."

In addition to the Philippines venture, Aramco signed a Collaboration Framework Agreement with Petrovietnam in November 2024.

This agreement aims to bolster energy and petrochemical product storage, supply and trading between the two companies.

It was signed during Vietnamese Prime Minister Pham Minh Chinh's visit to Saudi Arabia for the Future Investment Initiative in Riyadh.

This collaboration sets the stage for potential joint efforts in the energy sector.

Moreover, Aramco, along with Saudi Aramco Jubail Refinery Company (SASREF) and Rongsheng Petrochemical, also signed a development framework agreement in Beijing, China.

This agreement is a significant step towards the SASREF expansion project in Jubail, Saudi Arabia, aimed at enhancing refining and petrochemical capabilities.