Singapore oil firm acquires 51 percent stake in Admore

KARACHI: Puma Energy, a Singapore-based midstream and downstream oil firm, acquired a majority stake in oil marketing company Admore Gas Pvt Ltd to roll out its products in the country with growing gasoline consumption.  

Puma Energy, however, didn’t reveal the amount of acquiring 51 percent interest in Admore. 

“The joint venture will bring Puma Energy branded retail sites, convenience stores and quality product range to the Pakistan market, and undertake a significant investment programme to develop best-in-class supply chain infrastructure in-country to ensure the future needs of our retail business partners and public customers can be met,” the company said in a statement.   

Oil sales in the country soared 11 percent at 10–year high of 26 million tonnes as the economy recorded a decade-high growth of 5.3 percent during the last fiscal year. 

Though Admore is a smaller company as compared to other players in the country it has witnessed a significant improvement in terms of supply, storage and corporate governance in a very short period of time since the company was acquired by Pakistan’s business conglomerate Chishti Group in 2014. Within last two years, Admore opened more than 470 retail fuel stations across the country, while its sales surged more than four times to 174,000 tonnes last year. State-run Pakistan State Oil dominates local market with a share of over 60 percent. 

“We believe partnering with Puma Energy will benefit our Admore network, connecting Pakistan to the global market and ensuring security of supply for Pakistan’s future growth,” Amir Waliuddin Chishti, chairman of Chishti Group said.

“We see many opportunities for continued investment in infrastructure and supply to our portfolio of customers.”

Puma, whose largest shareholder is Singaporean commodities trader Trafigura Group, launched in 1997 in Central America and since then it has expanded its activities to 47 countries.

Puma and Chishti Group signed the acquisition agreement on Friday. Prime Minister Shahid Khaqan Abbasi witnessed the signing ceremony. 

Abbasi, in another statement, said the country offers a sizeable consumer market for petroleum products. 

“The government is facilitating investors in the energy sector and welcomes healthy competition,” he added. “The government is facilitating investors in the energy sector and welcomes healthy competition.”

Prime Minister said construction of new pipelines to transport fuel from Karachi to northern parts of the country and the largest oil refinery in the country at Karachi are underway on fast track.

The country oil and gas sector attracted foreign investment in the past as well. In 2015, Vitol SA, the world’s biggest oil trader, acquired a stake in Hascol Petroleum Ltd and Vitol obtained another 10 percent stake in Hascol last month to bring total interest up at 25 percent.