Baku, Azerbaijan, Feb.14
By Leman Zeynalova – Trend:
Saudi Aramco of Saudi Arabia and France’s Total have signed an agreement to develop a network of retail fuel service stations in Saudi Arabia, Trend reports citing Saudi Aramco’s website.
Reportedly, the 50:50 joint venture (JV) plans to invest around $1 billion over the next 6 years in the Saudi retail fuel market to provide motorists with premium fuels and retail services in Saudi Arabia.
The JV will take a phased approach to expanding its network of domestic fuel retail stations, with a plan to reach the goal of owning and operating hundreds of stations by 2021.
Momar Nguer, President of Marketing and Services and Executive Committee Member at Total, said that 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,” said Nguer.
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 modernize this network and build high-quality service stations at selected locations. This transaction is subject to approval of regulatory authorities.
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