Admore Gas Pvt. Ltd, an oil marketing company has struck a deal to sell a sizable ownership stake to Puma Energy BV, according to a report by Bloomberg. The deal comes amid rising interest in Pakistan’s fast growing fuel retailers as demand for oil and gas products surges in the country. Singapore-based Puma is the world’s second largest independent downstream oil company and is controlled by European commodities trader Trafigura.
Privately-owned Admore has been expanding rapidly since CEO Nadeem Jafarey took the helm in March 2016. The company markets heating oils and lubricants, as well as conventional petrol and diesel through its network.
Admore had 471 retail fuel stations at the end of the latest quarter, and reportedly quadrupled sales to 174,000 tons last year. Mr. Jafarey is also headlining a modernized re-branding effort across the company’s retail locations to lead expansion and tap into the growing demand for oil and gas products in the country.
In April, Admore inaugurated a $3.5 million state-of-the-art oil storage terminal at Daulatpur, Sindh, with an initial capacity of 2,000 metric tons. The facility would boost expansion and streamline delivery of products to retail markets in upper Sindh and Balochistan.
Demand for gasoline products has risen sharply in energy-starved Pakistan, with industry experts calling for the need to invest heavily in fuel infrastructure. Amid the country’s dependence on foreign oil, companies are looking at increased investment in refining, storage and transportation capacity to reduce the burden of importing expensive refined petroleum products.
Puma Energy executives did not reply for comment. The company operates as a fuel marketing refining and distribution player with several global business hubs.