Aramco Expands Footprint in the Philippines with Unioil Partnership

Aramco's Strategic Move into the Philippine Retail Market

In a bold strategic step toward expanding its global retail footprint, Aramco, one of the world’s leading energy and chemicals companies, has signed definitive agreements to acquire a 25% stake in Unioil Petroleum Philippines. This acquisition places Aramco in a prime position to tap into the burgeoning retail fuel market in the Philippines, recognized for its rapid growth and increasing demand for high-quality fuels.

The agreement, disclosed on February 19, 2025, is contingent upon customary closing conditions, including regulatory approvals. This investment is aligned with Aramco’s strategic focus on enhancing its downstream operations and global retail presence, reflecting its commitment to secure additional markets for its refined products.

According to Yasser Mufti, Aramco's Executive Vice President of Products & Customers, this investment is a pivotal step in the firm’s overarching goal to broaden its retail network. He expressed enthusiasm about introducing Aramco's premium products and services to Filipino customers, indicating a promising future market synergy with Unioil—a company characterized by its dynamic operations in the growing Philippine fuel market.

Founded in 1966, Unioil has established itself as a significant player within the Philippine petroleum industry, boasting a diversified portfolio that includes retail, wholesale, and storage operations. With an extensive network of 165 service stations and four storage terminals across the country, Unioil is well-equipped to benefit from the strategic partnership with Aramco. This collaboration enhances the potential to deliver superior fuel options and lubricants such as the Valvoline brand, further solidifying Aramco’s presence in the region.

This acquisition follows Aramco's previous retail expansion endeavors in markets like Chile and Pakistan, highlighting the company's ongoing strategy of identifying key markets with high growth potential. As the company prepares to implement its brand and competitive retail offerings in the Philippines, it anticipates that its collaboration with Unioil will provide a robust platform for delivering quality products and services to a discerning customer base.

The shift into the Philippine market is particularly timely as the region is expected to see continued economic growth, alongside a transition towards more technologically advanced fuel solutions. Aramco aims to tap into this momentum by positioning itself strategically within the market, aiming to capture insights that will allow it to adapt quickly to evolving consumer preferences and industry trends.

Aramco’s ambition extends beyond mere market entry; the company is also focused on creating additional value through collaboration with established local partners. By strengthening its participation in dynamic economies like the Philippines, Aramco seeks to establish a sustainable framework for growth and enhance its global standing as a reputable energy and chemicals supplier.

As the partnership between Aramco and Unioil unfolds, all eyes will be on their joint efforts to make significant inroads into the Southeast Asian market, which presents a cloud of opportunities in securing the supply chain for premium fuels and chemicals. Aramco’s entry signifies not just a business expansion, but also a commitment to providing high standards and reliable products tailored to the evolving needs of the Philippine consumer market.

In conclusion, as Aramco embarks on this new chapter within the Philippine retail market, the company's dedicated strategy towards fostering partnerships and leveraging local expertise stands to pave the way for substantive contributions to the nation’s burgeoning fuel industry. With economic growth on the horizon and a competitive marketplace in view, the collaboration with Unioil may very well be just the beginning of Aramco’s expansive journey in Southeast Asia.

For more information on Aramco's strategic initiatives, visit aramco.com.