DUBAI - Saudi Aramco 2222.SE and French oil company TotalEnergies have opened the first two service stations as part of a planned $1 billion fuel retail network across the kingdom.
The two companies in 2019 established a 50:50 joint venture to provide motorists with premium fuels and services, as Saudi Arabia sees a real estate and infrastructure boom as it opens up to tourism and foreign investment.
"We are creating a premium network that will enhance the experience of Saudi Arabia’s motorists and travellers," Amin Nasser, chief executive of Aramco, was quoted saying in a statement on Monday.
"As the Kingdom scales up tourism projects, we can expect domestic travel to increase, along with demand for hospitality and travel services," Nasser added.
The initial two service stations are in the capital Riyadh and in Saihat, in the east of the kingdom.
A unit of Abu Dhabi National Oil Co., ADNOC Distribution, earlier this year agreed to buy 20 service stations in Saudi Arabia.
Emirates National Oil Co. (ENOC), an entity owned by the Dubai government, in 2019 said it plans to invest close to 2.2 billion dirhams ($8 billion) to expand its network in the UAE and Saudi Arabia to meet growing fuel demand in the two countries.?
($1 = 0.2723 UAE dirham)
(Reporting by Hadeel Al Sayegh; Editing by David Holmes) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))