Aramco, Total said to eye Saudi fuel stations such as Tas’helat

LONDON: Saudi Arabian Oil Co and Total SA are weighing jointly buying businesses such as Tas’helat Marketing Co to gain access to networks of retail fuel stations in the Gulf kingdom, according to a source.

The state-owned company, known as Aramco, and the French oil giant are also looking at a range of options from consolidating some service stations to potentially starting the business from scratch, the source said.

French lender Credit Agricole SA and local investment bank Saudi Fransi Capital are advising the firms on their plans, which are still in the early stages, the source said.

No final decisions have been taken and the group may decide against acquiring Tas’helat, which operates fuel stations under the Sahel brand, or any other business, the source said. Representatives for Total and Credit Agricole declined to comment. Spokesmen for Aramco and Saudi Fransi didn’t respond to requests for comment.

Aramco and Total this month entered into a preliminary accord to study the joint purchase of a retail service station network in Saudi Arabia, and another worth US$9bil for the potential expansion of a refinery and petrochemicals complex in Jubail, according to a statement on April 10.

A division of Aramco, known as Saudi Aramco Retail Co, may enter into a joint venture with the French company to operate the business following a takeover, the source said.

Aramco, which is planning what could be the world’s largest initial public offering, is scouting for acquisitions as it seeks to become an integrated energy company with operations spanning the full spectrum of activities in the industry. The company asked banks to pitch for roles to help identify natural gas assets globally, sources said this month.

Other large energy majors are looking to divest distribution assets and focus more on core exploration activities. Abu Dhabi National Oil Co, another Middle East stateowned explorer, raised 3.1 billion dirhams (US$844mil) from the sale of a stake in its fuel retail unit this year. — Bloomberg