Vitol Dubai Limited, a UAE-based company and one of the largest independent oil trading entities in the world, has acquired 1.26 million rights shares of Hascol Petroleum Limited against a value of Rs. 126 million (i.e. 100 per share).
The share sale and purchase deal is a part of the agreement between the two companies signed last year in February 2016, which enhanced the shareholding of the UAE-based energy group whilst lowering the stakes of the Pakistani company.
The increasing interest and investment of Vitol Dubai Limited is strategic decision considering the growing energy group which plans to expand and diversify its business portfolio in the oil sector.
Hascol Petroleum Limited generated substantial funds through divestment of its shareholding in the company that can be used for completion of its planned future projects.
The company set up its subsidiary VAS LNG in collaboration with Vitol Dubai Limited. It is the joint venture of Hascol Petroleum Ltd, with 30 percent of the shares, and UAE-based Vitol Holding. with a major 70 percent share. The subsidiary will be operational in the coming months.
A new joint venture company, Hascol Terminals Limited, has also been set up with Vitol and it is planned to have 200,000 Metric Tons of storage at Port Qasim.
Besides, Hascol also plans to set up its subsidiary for Lubricant producing unit in collaboration with FUCHS-Germany at the cost of $20 million. In this regard, the development work is underway.
At present, Hascol is operating 460 retail outlets in the four provinces of Pakistan and Jammu and Kashmir. It has become the second largest importer of petroleum products after Pakistan State Oil.
The demand of various products of oil is increasing gradually in the country mainly due to the economic growth, which will likely pace up in the years to come.
It is encouraging that a Pakistani company is not only flourishing its business across the country but has also attracted foreign investors in the oil industry.