Total forms JV with Saudi Aramco to invest $1bn in new gas station network

The two companies have already agreed to acquire two local retailers and hundreds of gas stations in Saudi Arabia.

Saudi Aramco and Total today signed a joint venture agreement to develop a network of fuel and retail services in Saudi Arabia.

The 50/50 JV plans to invest around USD1 billion over the next 6 years in the Saudi fuel retail market and start providing motorists with premium fuels and retail services in Saudi Arabia.

“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 Marketing and Services and Executive Committee Member at Total.

As one of the first moves, the JV has signed an agreement to acquire local retailers Tas’helat Marketing Company (TMC) and Sahel Transport Company (STC), including their network of 270 service stations and their fuel tanker fleet. Saudi Aramco and Total plan to modernize this network and build modern service stations at selected locations.

“I am excited about this major milestone, which will help transform the fuel retail market in the Kingdom. We look forward to working together with our long-term partner Total, and draw on their extensive experience in the fuel retail market,” said Abdulaziz Al-Judaimi, Saudi Aramco Senior Vice President of Downstream.

In January of this year, Saudi Aramco announced the creating of a new retailing arm, RetailCo in the Gulf Kingdom. It is not clear if all the sites acquired by the JV will be branded as RetailCo.