Joint venture plans to invest heavily over the next six years in the Saudi fuel retail market
Saudi Aramco and Total on Thursday signed a joint venture agreement to develop a network of fuel and retail services in Saudi Arabia.
The 50:50 JV plans to invest around $1 billion over the next six years in the Saudi fuel retail market and start providing motorists with premium fuels and retail services in the Guf kingdom.
The announcement comes after UAE-based Adnoc and Enoc launched plans to expand its service stations in Saudi Arabia.
“Total is proud to be the first international oil major to invest in Saudi Arabia’s fuel retail network. This joint venture agreement is in line with our global strategy to expand in fast-growing markets worldwide.” said Momar Nguer, president marketing and services and executive committee member at Total.
“I am excited about this major milestone, which will help transform the fuel retail market in the kingdom. We look forward to working together with our long-term partner Total, and draw on their extensive experience in the fuel retail market,” said Abdulaziz Al-Judaimi, Saudi Aramco senior vice president of Downstream.
He added: “We aim to enhance the quality of services, as well as create thousands of jobs and additional investment opportunities in the kingdom.”
The two companies have also signed an agreement with the owners of Tas’helat Marketing Company and Sahel Transport Company to acquire their existing network of 270 service stations and their fuel tanker fleet.
Saudi Aramco and Total said they plan to modernise the network and build new service stations at selected locations.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.