Total and its Pakistani partner PARCO said today they had reached a deal with Chevron to buy its fuel distribution network in Pakistan.
“Total and its partner PARCO confirm that they have reached an agreement with Chevron to acquire its fuel marketing businesses of retail, commercial and industrial sales, logistics and aviation in Pakistan,” a Total spokesman told AFP.
The deal, which would more than double Total’s network of petrol stations in Pakistan, is currently pending Pakistan government approval.
PARCO is a joint venture between Pakistan’s government, which owns 60 per cent, and the United Arab Emirates, which owns 40 per cent. PARCOs key function is the marketing of petroleum products.
“This acquisition will strengthen Total’s position in Pakistan and notably in Total Parco Pakistan Ltd, a joint venture between Total SA and Pak Arab Refinery Ltd (PARCO),” the spokesman said.
Neither the value of the deal, nor the closing date, has been disclosed by the companies.
Total currently has 260 service stations in Pakistan under its partnership with PARCO. Once this deal with Chevron is complete, it will increase to nearly 800 stations, giving Total the third-largest distribution network in Pakistan after Shell and Pakistan State Oil.
Total has also recently acquired the Shell and Chevron distribution networks in Egypt and the company has stated the Middle East is a priority for expansion.