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Aramco is looking to enter the fuel retail sector in Southeast Asia and Africa as it looks to tap countries with fast-growing economies, it told Al Eqtisadiah yesterday. The markets are part of the company’s current operations and its expansion strategy in the future, it said.
The oil giant has been eyeing the fuel retail market for sometime: It set up its subsidiary Saudi Aramco Retail (RetailCo) in 2018 under its strategy to bolster its downstream value globally. Locally, it launched in 2021 with French oil giant TotalEnergies a joint retail network under a 50-50 JV that plans to invest USD 1 bn through 2025. The Aramco-TotalEnergies JV aims to expand fuel retail offering here, acquiring an existing network of 270 service stations from local Tas’helat Marketing Company and Sahel Transport Company.
And some moves overseas: Aramco completed earlier this month its acquisition of a 100% equity stake in Chile’s fuel distributor Esmax Distribución, marking its entry into fuel retailing in South America. The move came months after Aramco made its first move into Pakistan’s retail fuel market after signing a binding agreement in December to acquire a 40% stake in oil marketing company Gas & Oil Pakistan (Go).
ALSO FROM ARAMCO- The state oil giant plans to raise natural gas output by 60% by 2030, Reuters reported yesterday, citing statements by Aramco’s Executive VP for Strategy and Corporate Development Ashraf Al Ghazzawi at an energy summit. His statements came weeks after Aramco shelved investment plans in new production capacity on the back of an increasing emphasis on cleaner energy.
