Dubai: Gulf Oil International, part of Hinduja Group and Dabbagh Group of Saudi Arabia, have bought Petromin, a joint venture between Saudi Aramco and Mobil Investments, for $200 million.
The buying underlines growing inflow of capital from India to the Kingdom’s energy sector.
Petromin takeover by Gulf Oil International represents a significant trend in the oil sector that not only underlines growing investment in the Saudi downstream oil industry, said the Arab News.
Petromin, the largest manufacturer of lubricants in the Kingdom, exports to over 20 countries. Prior to the takeover, it was a joint venture between Saudi Aramco (71%) and Mobil Investments (29%), an affiliate of Exxon Mobil, with an annual sale of 80,000 metric tons and an annual turnover of over $200 million.
Speaking on the occasion, Sanjay Hinduja, Chairman Gulf Oil International said “this acquisition will help Gulf Oil consolidate its presence in the growing Middle East market and will also build the platform for growth for our business in the Middle East and Africa.”
Gulf Oil International which is on an expansion spree recently acquired a lubricant plant in Jebel Ali and is also constructing a new 50,000 ton lubricant plan at Yantai in China’s Shandong province.
The Hinduja Group is a multi-billion dollar global investment and banking group with a diversified global portfolio of holdings across the manufacturing services and banking sectors.
Gulf Oil International, which is spearheading an expansion drive, recently acquired a lubricant plant in Jebel Ali and is also constructing a new 50,000 ton lubricant plant in Yantai at China’s Shandong province.