Jointly announced by Total and Aramco, the French and Saudi oil companies will soon join forces to develop a network of service stations in Saudi Arabia. With a shared investment of nearly $1 billion over six years, this will be a 50-50 joint venture.
Total, in the conquest of the Saudi kingdom
The future joint venture will have to proceed in stages. With a Saudi fuel distribution market that is still not very concentrated and largely in the hands of independent companies such as Sahel, which has 270 service stations in the country, the Total-Aramco merger aims to initially acquire the local distributors; and rename the former points of sale with the joint venture’s brands.
By joining forces with Total, Aramco is taking a first step in distribution and demonstrating its desire to diversify its business by developing its core business, namely refining, petrochemicals and exploration and production.