Saudi Arabia's Aramco, a global energy leader, is investing in Unioil Petroleum Philippines, Inc., bolstering the 58-year-old company's growth and solidifying its position as a leading fuel retailer.

In a statement, Unioil confirmed that Aramco, which divested its stake in Petron Corp. nearly two decades ago, will acquire a 25 percent stake in the Co family-led oil company.

Unioil did not disclose in the press statement the date the deal was finalized.

Aramco has recently made similar retail acquisitions in Chile and Pakistan and will extend its competitive offerings and products such as Valvoline-branded lubricants to the Philippines through its agreement with Unioil.

Last December, Manila Bulletin reported Aramco's intention to stage a major comeback in the Philippine energy sector, identifying Unioil as a potential investment.

"We are delighted with this new partnership with Aramco, which represents a major milestone in Unioil’s 58 years history,” said Janice Co Roxas-Chua, Unioil's chief executive officer.

"We are confident that this will equip ourselves in accelerating our growth and development, further innovate, and strengthen our position as a leader in the wholesale and retail fuels market,” she added.

The collaboration will also introduce the Aramco brand to Filipino consumers.

Yasser Mufti, Aramco’s executive vice president of products and customers, welcomed the investment, saying this would help expand their firm’s retail network back to the Philippines.

“Our international expansion aims to capture additional value and enhance our participation in vibrant economies, in collaboration with established partners,” he said in a separate statement.

"The strategic investment by Aramco is fully in line with our ambition to be the fuel retailer of choice and support our customers with top tier fuel solutions," added Unioil president Kenneth C. Pundanera.

Does this signal that the country’s economy is becoming an attractive investment hotspot, 16 years after the Saudi-based energy firm left the Philippines? Analyst and Sun Life Investment Management and Trust Corp. president Michael Enriquez believes it could be.

“There is recognition that the demand for energy and oil products in the Philippines is growing. Partnering with a local player would have better synergies than a foreign player such as Shell or Caltex,” he told Manila Bulletin.

Enriquez also noted that Saudi Aramco plans to expand its platform into the Asia-Pacific region, where it already has subsidiaries in China, Japan, Korea, Singapore, and India.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC) added that “this is a sign of confidence by foreign investors on the business and economic prospects of the Philippines.”

Apart from expansion, this stake is considered a “vote of confidence”, as per Astro Del Castillo, analyst and managing director of First Grade Finance Inc.

“Aramco’s strategic move capitalizes on growth opportunities in the Philippine market while reinforcing its global retail network. The investment will benefit both companies and local consumers as the new partnership could reshape the competitive landscape in the Philippine petroleum industry,” he added.

Founded in 1966 by the Co family, Unioil has grown from a lubricants manufacturer and distributor to a major player in the fuels market, with facilities across Luzon, Visayas, and Mindanao.

Following the deregulation of the petroleum industry in 1998, Unioil ventured into fuels trading, distribution, and retailing, consistently introducing cleaner fuel products.