Saudi Arabia: Aramco, Total launch first two stations

In an initial step of their $1 billion joint venture the companies are capitalizing on the real estate and infrastructure boom in the region.

Saudi Aramco and French oil firm TotalEnergies launched their retail network as part of a $1 billion joint venture. Both companies opened the first two service stations, in the capital Riyadh and Saihat, as part of the plan to expand the network across the region.

"With our longstanding partner TotalEnergies, we are creating a premium network that will enhance the experience of Saudi Arabia’s motorists and travelers. As the Kingdom scales up tourism projects, we can expect domestic travel to increase, along with demand for hospitality and travel services," said Amin Nasser, Chief Executive of Aramco.

It's the initial step in their 2019 deal to offer drivers their fuel and services. The 50:50 agreement was set to capitalize on the real estate and infrastructure boom of Saudi Arabia amidst its reopening for tourism and foreign investment.

“The opening of these two first stations is another step forward in reaffirming our long-standing partnership with Aramco, following our joint investments in SATORP since 2008," Patrick Pouyanné, Chairman and CEO of TotalEnergies, commented.

The news comes two years after the announcement from Emirates National Oil Co. (ENOC) of an investment of roughly 2.2 billion dirhams. The Dubai government owned company has agreed to buy 20 sites in Saudi Arabia in order to support its network expansion alongside the United Arab Emirates to meet both its fuel demands.