Aramco, Total sign $1bn deal to build petrol stations in Saudi Arabia
Both energy giants have formed a JV that will oversee the development of fuel stations between now and 2021
Over the next six years, Saudi Aramco and French energy giant Total will invest $1bn (SAR3.75bn) to construct hundreds of petrol stations under a joint venture (JV) to maximise the kingdom’s hydrocarbon economy.
Each company owns a 50% stake in the new venture, which aims to provide Saudi motorists with better service stations between now and 2021.
Aramco and Total also announced the acquisition of Tas’helat Marketing Company and Sahel Transport Company, and will secure 270 service stations and a fuel tanker fleet as a result of the deal, which is pending regulatory approval.
The JV will adopt a phased approach to the construction of new stations, due to be built in “selected locations”. The chairman of the new company’s board of directors, Abdulaziz Al-Judaimi, described the agreement as a “major milestone” in efforts to develop a high-quality fuel network.
Al-Judaimi, also Saudi Aramco’s senior vice president of downstream, said Total had extensive experience in managing petrol stations, adding: “With this new business, we aim to enhance the quality of services, as well as create jobs and additional investment opportunities in the kingdom.”
Al-Judaimi will be joined at the JV by Mohammed Al-Gahtani, who has been named chief executive officer of the Aramco-Total venture.
Saudi Aramco already has extensive experience of operating petrol stations locally and internationally. Through its affiliated companies, the state-owned company runs more than 11,000 fuel stations in China, Japan, South Korea, and the US.