Unioil expansion gets boost with Aramco’s entry

Unioil Petroleum Philippines, Inc. is getting a major push for its planned expansion as Saudi Arabian Oil Co. (Aramco) secures a 25-percent stake in the local firm.

Unioil announced the closing of their deal on Friday, marking the official re-entry of Aramco into the Philippine market 17 years after it exited Petron Corp.

This came less than nine months after both parties announced Aramco’s move to secure an interest in Unioil Petroleum. The latter is a fuel distributor and retailer with about 160 stations and storage facilities.

Aramco, meanwhile, is known as one of the leading integrated energy and chemical companies worldwide. The value of the transaction was not disclosed.

Welcoming Aramco to its business, Unioil is even more bullish about its growth prospects as it “gains access to a reliable source of fuel supply to meet the Philippines’ growing demand.”

“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 fuels market,” Unioil CEO Janice Co Roxas-Chua said.

Kenneth Pundanera, Unioil president, said the partnership would enable them to “expand our reach and deliver top-tier fuel solutions to Filipino motorists.”

“It also affirms the strength of our business and the potential of the Philippine market to attract world-class partners,” Pundanera said.

Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., earlier said that Aramco’s entry in Unioil would “better position Unioil for expansion and competition as a major fuel retailer.”

Colet said Aramco’s comeback in the local market also signals confidence in the Philippine economy.

“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.