Saudi Arabia: Joint Venture Saudi Aramco, Total to Invest One Billion Dollars in Saudi Fuel Retail Market
Both the companies have entered into a 50:50 joint venture in order to develop a network of fuel and retail services in Saudi Arabia. The aim of the initiative is to offer premium fuels and retail services to motorists in the country.
Dhahran/Saudi Arabia – Saudi Aramco and Total have recently signed a Joint Venture (JV) Agreement to develop a network of fuel and retail services in Saudi Arabia. The 50:50 JV plans to invest around 1 billion dollars over the next six years in the Saudi fuel retail market and start providing motorists with premium fuels and retail services in Saudi Arabia.
Total is the first international oil major to invest in Saudi Arabia’s fuel retail network. This joint venture agreement is in line with the firm’s global strategy to expand in fast-growing markets worldwide.
Saudi Aramco aims to enhance the quality of services, as well as create thousands of jobs and additional investment opportunities in the Kingdom. This project will also help optimise the total value of its hydrocarbon resources.
The two companies have also signed an agreement with the owners of Tas’helat Marketing Company (TMC) and Sahel Transport Company (STC) to acquire TMC and STC, thereby jointly acquiring their existing network of 270 service stations and their fuel tanker fleet. Saudi Aramco and Total plan to modernise this network and build high-quality service stations at selected locations.
This operation is subject to prior approval of the competent administrative authorities.