Saudi Aramco is reportedly planning a return to the Philippine energy market after exiting its stake in Petron Corporation in 2008.
Manila Bulletin reported that Saudi Aramco is eyeing a merger and acquisition (M&A) deal with one of the country’s largest independent oil companies.
Saudi Aramco previously held a 40% stake in Petron Corporation, which it sold to the Ashmore Group in 2008 for USD 550 million.
That stake was later acquired by business tycoon Ramon Ang, who now leads Petron as the nation’s largest oil company.
The source revealed that the global oil powerhouse began its due diligence on the potential acquisition last summer, with negotiations gaining momentum over the last three months. In addition to exploring oil sector assets, Saudi Aramco is assessing opportunities to invest in the Philippines’ growing renewable energy (RE) industry.
The insider noted that while no official decisions have been made, Saudi companies are actively evaluating investment offers, including those in the RE sector.
Additionally, the industry source in the downstream oil sector suggests that Saudi Aramco’s interest may be focused on Unioil Petroleum Philippines Corporation.
Unioil established its presence in the industry following the country’s oil deregulation policy in the late 1990s.
The industry insider stressed that Saudi Aramco’s renewed interest stems from the promising energy investment opportunities currently available in the Philippines.
Saudi Aramco has been diversifying its portfolio by investing heavily in RE, hydrogen, nuclear technology, and other innovations to support the global energy transition.
In October, Energy Secretary Raphael P.M. Lotilla traveled to Saudi Arabia to strengthen energy partnerships and promote sustainable energy systems.
The trip culminated in a memorandum of understanding (MOU) between Lotilla and Saudi Energy Minister Abdulaziz bin Salman Al Saud, aimed at enhancing bilateral energy cooperation.
