Aramco creates fuel retail subsidiary to expand downstream businesses

Aramco is now focusing on a range of downstream projects.

Saudi Aramco said on Wednesday it was establishing a domestic fuel-retailing subsidiary as part of the national oil company's drive to expand into downstream businesses.

The new firm, Saudi Aramco Retail Co, will create a network of filling stations within Saudi Arabia to sell automotive fuels, Aramco said without giving details of the size, cost or time-frame for the network.

In April, Aramco said it had signed a memorandum of understanding with French firm Total to evaluate the feasibility of jointly buying a retail service station network in Saudi Arabia.

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But Wednesday’s statement did not mention Total or the possibility of buying existing stations. The new Saudi network will complement a global retail network which Aramco already operates through joint ventures, the company said.

Aramco is now focusing on a range of downstream projects, including the purchase of a major stake in petrochemical producer Saudi Basic Industries, which could boost its value and attractiveness to international investors, ultimately allowing the IPO to go ahead.

Last Update: Wednesday, 20 May 2020 KSA 09:54 - GMT 06:54