Abu Dhabi: Adnoc Distribution, the retail arm of Abu Dhabi National Oil Company (Adnoc), is poised enter the Saudi Arabian market with a major plan that will see a number of petrol pumps across the country.
Adnoc Distribution signed a Memorandum of Understanding (MoU) in Riyadh this week with Saudi-based Al Olaibi Company to extend its services in the country.
Jamal Al Zareef, general manager of Adnoc Distribution, told Gulf News that the MoU will enable the company to sell and distribute its advanced products and services in one of the biggest markets in the region.
"We will operate state-of-the-art Adnoc Distribution petrol stations in the growing Saudi market," said Al Zareef.
"This move comes with the company's expansion plans to develop, increase its services' quality, and extend its stations to new local and regional locations," he added.
The move comes at a time when Saudi Arabia plans to open up the country's economy to attract increasing foreign direct investment (FDI) as well as more tourists into the country.
Adnoc's entry into the Saudi Arabian market will help to serve a growing cross-border tourism industry that is flourishing across the region.
"We have completed the electronic linkage of Adnoc's smart pre-paid cards to be valid in Kuwait, Qatar, Oman and we prepare to extend the smart cards services in Saudi Arabia as well," Al Zareef said. Rashid Al Olaibi, Director General of Al Oliabi Company, who signed the MoU with Al Zareef, said that the company has many stations and strategic locations in the Kingdom.
"We have strong relationships with the government authorities and a wide experience in retailing and distributing oil and petrochemicals products in the Saudi market," said Al Olaibi.
He added that the company has many contracts with Aramco to supply petrol, diesel, petrochemicals and lubricants produced by Aramco and other international or regional companies.
Adnoc Distribution, with its Saudi partner, will build a network of stations on the country's main roads, and on the international highway that links the GCC countries with Europe and regional countries.
Al Olaibi Company has a fleet of 300 heavy trucks for distribution of fuel and petrochemicals. The company's annual sales exceeded one billion litres of fuel, lubricants, and petrochemicals in 2005. It has branches in Riyadh, Madinna, Dammam and Qussaim.