Saudi Aramco has disclosed plans to enter the Kingdom’s retail market by setting up gas stations fully owned by the company.
“We had already begun implementing this project by the end of last year,” said the company’s annual report without giving an exact date for launching the service.
The move comes as part of the Saudi oil giant’s strategy to become an integrated energy company that enters into more business ventures, including petrochemicals and the sales of refined products.
A team set up for this purpose is reportedly weighing several strategic options to expand the company’s operations. Aramco has already received approval for establishing a fully owned company for retail services.
The new company is licensed to build, operate and maintain service stations in selected areas. The company will not only run gas stations but also supermarkets and other services. Aramco has indicated that it could hand services other than fuel supply to potential partners who could add value to the company and its trademark.
Two international companies — Shell and Mobil — left the Kingdom’s retail market after suffering losses, said Ahmed Al-Falih, deputy chairman of the National Committee for Gas Stations.
He said one of the two had paid SR80 million for nine stations. “Gas stations face problems in acquiring licensing and manpower,” he said.
Foreign investors in the sector are required to have 10 years’ experience in management, operation and maintenance. “About 90 percent of station owners are small investors,” Al-Falih said.
Saudi Aramco to set up gas stations
Saudi Aramco to set up gas stations
Saudi foreign ministry condemns demolition of UNRWA buildings in Jerusalem by Israel
- Israeli bulldozers demolished structures inside Sheikh Jarrah compound on Tuesday
- Kingdom expresses support for beleaguered UN agency in statement
RIYADH: The Saudi Ministry of Foreign Affairs condemned the demolition of buildings belonging to the UN Relief and Works Agency for Palestine Refugees by Israeli occupation forces in the Sheikh Jarrah neighborhood of occupied Jerusalem.
The ministry rejected Israeli violations of international law and held the international community responsible for addressing the Israeli policy of “crimes against international relief organizations,” the Saudi Press Agency reported.
It added: “Saudi Arabia expresses its support for UNRWA in its humanitarian mission to provide relief to the brotherly Palestinian people, and calls on the international community to protect relief organizations, their workers and their facilities.”
On Tuesday, Israeli bulldozers demolished structures inside UNRWA’s compound in the Sheikh Jarrah neighborhood of Jerusalem after storming the area and sealing off the surrounding streets, according to Wafa news agency.
