Saudi Aramco, Total to invest $1bn in retail fuel network in Saudi Arabia
Saudi Aramco and Total have signed a joint venture (JV) agreement to develop a retail fuel network in Saudi Arabia with an investment of about $1 billion.
The 50: 50 JV plans to invest the amount over the next six years in the Saudi retail fuel market to offer motorists premium fuels and retail services.
Abdulaziz Al-Judaimi – Saudi Aramco Senior Vice President of Downstream and Chairman of the JV Board, said: “This is a major milestone which will help establish a quality retail fuel network in the Kingdom. We look forward to working together with our long-term partner Total and draw on their extensive experience in the retail fuel market.
“With this new business, we aim to enhance the quality of services, as well as create jobs and additional investment opportunities in the Kingdom. This JV aligns with Saudi Vision 2030 and supports the goals of the Infrastructure and Transportation Initiative under the Quality of Life program. This project is designed to also help optimize the total value of our hydrocarbon resources.”
Saudi Aramco, Total to invest $1bn in retail fuel network in Saudi Arabia. Photo courtesy of Saudi Arabian Oil Co.
The JV will grow its network of domestic fuel retail stations in a phased manner and is expected to own and operate hundreds of fuel stations in Saudi Arabia by 2021.
Saudi Aramco and Total have also inked an agreement to acquire Tas’helat Marketing Company (TMC) and Sahel Transport Company (STC) from their respective owners. As a result, the partners will jointly acquire the TMC and STC’s existing network of 270 service stations and their fuel tanker fleet.
Saudi Aramco and Total have plans to revamp the acquired network and build high-quality service stations at certain locations. The transactions are subject to regulatory approvals.
Momar Nguer – President of Marketing and Services and Executive Committee Member at Total, said: “Total is proud to be the first international major oil company to invest in Saudi Arabia’s fuel retail network. This joint agreement is in line with our strategy to expand in fast-growing markets worldwide. This new agreement is also reaffirming our long-term partnership with Saudi Aramco.
“Following our joint investments in SATORP refining and petrochemical complex, we are pleased to bring to the Saudi market our expertise and customer-minded approach in retail and contribute to local employment development.”