The 50:50 joint venture aims to invest about USD 1 billion in the upcoming 6 years in the fuel retail market of Saudi Arabia
Oil giants Total and Saudi Aramco have reportedly announced to have inked a joint venture deal to build a network of fuel and retail services in the Kingdom. As per trusted sources, the 50:50 joint venture aims to invest about USD 1 billion in the upcoming 6 years in the fuel retail market of Saudi Arabia.
President of Marketing and Services and the Executive Committee Member at Total, Momar Nguer reportedly commented that the company takes pride in being the first international oil major to invest in the fuel retail network of Saudi Arabia and the new joint venture deal aligns with Total’s strategy to expand in fast-growing markets globally.
The latest joint venture deal also reaffirms the long-term partnership of Total with Saudi Aramco and the company is delighted to bring customer-minded approach and expertise to the Saudi market following the joint investments in SATORP refining and petrochemical complex, Nguer further added.
Senior Vice President of Downstream at Saudi Aramco, Abdulaziz Al-Judaimi was reportedly quoted saying that the company is delighted to have joined hands with its long-term partner to create the new joint venture which would assist in transforming the fuel retail market in Saudi Arabia. Saudi Aramco will leverage the extensive experience of Total in the fuel retail market and intends to improve the quality of services, along with focusing on additional investment opportunities and creating thousands of jobs in the Kingdom, Al-Judaimi further added.
According to a report published by SaudiGazette, Total and Saudi Aramco have also inked an agreement withthe owners of Sahel Transport Company (STC) and Tas’helat Marketing Company (TMC)to purchase both the firms. Post-acquisition, Total and Saudi Aramco would ownthe existing network of 270 service stations and fuel tanker fleet of STC andTMC.
Reportedly, the joint venture agreement is subject to prior approval of the competent regulatory authorities.