Saudi Aramco and Total signed a joint venture (JV) agreement to develop a network of fuel and retail services in Saudi Arabia.
The JV is based on a 50:50 partnership between both the companies, for an investment of one billion dollars over the next six years in the Saudi fuel retail market. This will provide motorists with premium fuels and retail services in Saudi Arabia.
Abdulaziz Al-Judaimi, Saudi Aramcos senior vice president of Downstream and chairman of the JV Board said that this agreement is a major milestone which will help establish a quality retail fuel network in the Kingdom.
He added: 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.
Total is proud to be the first international oil major to invest in Saudi Arabias 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.
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, he added.
The two companies have also signed an agreement with the owners of Tashelat Marketing Company (TMC) and Sahel Transport Company (STC) to acquire both the companies, thereby accessing their existing network of 270 service stations and their fuel tanker fleet.
The JV between Aramco and Total will also look at plans to modernise this network and build high-quality service stations at selected locations. This is subject to approval of regulatory authorities.
Ahmed Al-Subaey, vice president of Marketing, Sales, and Supply Planning and chairman of the Board of RetailCo., said that this venture will strive to exceed customer satisfaction, and that they wish to become Saudi Arabias choice retail by providing customers with unique experiences and premium offers.
Saudi Aramco is building on its position as the worlds oil powerhouse and international retail experience, coupled with Totals experience in this field. Our goal is to provide high-quality services that support the tourism industry in the Kingdom and reflect our countrys progress in developing the infrastructure and a reliable service industry, he added.
Al-Subaey emphasised that the decision to acquire TMC came after extensive feasibility studies of the local fuel and retail market and its promising opportunities.
