Dubai: Saudi Aramco and French energy giant Total have agreed to set up a network of fuel and retail services in the Gulf kingdom, it has been announced.
The two major players in the petroleum industry signed a joint venture agreement on Thursday that will see an investment of around $1 billion in Saudi Arabia.
“The 50:50 JV plans to invest around $1 billion over the next six years in Saudi fuel retail market and start providing motorists with premium fuel and retail services in Saudi Arabia,” a statement reads.
“Total is proud to be the first international oil major to invest in Saudi Arabia’s 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 for marketing and services and executive committee member at Total.
The two companies have also signed an agreement to acquire Tas’helat Marketing Company (TMC) and Sahel Transport Company (STC), thereby jointly acquiring their existing network of 270 service stations and their fuel tanker fleet.
Saudi Aramco and Total plan to modernise this network and build high-quality service stations at selected locations.