Total and Saudi Aramco to create thousands of jobs in $1bn gas station plan

Saudi Aramco and Total on Thursday agreed to invest $1 billion in the Kingdom’s retail fuel market in a move that is expected to create thousands of new jobs. (File/AFP)
Updated 14 February 2019
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Total and Saudi Aramco to create thousands of jobs in $1bn gas station plan

  • The investment will be made over a six-year period
  • The two companies have also signed an agreement with the owners of Tas’helat Marketing Company (TMC) and Sahel Transport Company (STC) to acquire TMC and STC

LONDON: Saudi Aramco and Total on Thursday agreed to invest $1 billion in the Kingdom’s retail fuel market in a move that is expected to create thousands of new jobs.
The investment will be made over a six-year period, the pair said in a joint statement.
“Total is proud to be the first international oil major to invest in Saudi Arabia’s fuel retail network. This joint venture agreement is in line with our global strategy to expand in fast-growing markets worldwide.” said Momar Nguer, executive committee member at Total, “This new agreement is also reaffirming our long-term partnership with Saudi Aramco.”
The two companies have also signed an agreement with the owners of Tas’helat Marketing Company (TMC) and Sahel Transport Company (STC) to acquire TMC and STC.
It means that the Aramco-Total joint venture will take control of an existing network of 270 service stations together with their tanker fleet.
“We aim to enhance the quality of services, as well as create thousands of jobs and additional investment opportunities in the Kingdom, said Abdulaziz Al-Judaimi, Saudi Aramco senior vice president of downstream.”
“This project will also help optimize the total value of our hydrocarbon resources.”
Total CEO Patrick Pouyanne teased Thursday’s announcement last month during a panel at the World Economic Forum in Davos.


RBS says Saudi bank merger boosts its core capital

Updated 16 June 2019
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RBS says Saudi bank merger boosts its core capital

  • RBS had a 15.3% interest in Alawwal bank
  • The changes would boost the banks CET1 core capital ratio by 60 basis points

Royal Bank of Scotland (RBS) said on Sunday the completion of a merger between Alawwal bank and Saudi British Bank would lead to RBS shedding $5.9 billion of risk weighted assets and boost its core capital.
RBS, through Dutch subsidiary NatWest Markets N.V., was part of a consortium including NLFI and Banco Santander S.A. that held an aggregate 40% equity stake in Alawwal bank, the British bank said in a statement. RBS also had an interest equivalent to a 15.3% stake in Alawwal bank.
RBS said that as a result of the merger completion, it would recognise an income gain on disposal of the Alawwal bank stake for shares received in Saudi British Bank of almost $503 million and a reduction in risk weighted assets of nearly $5 billion.
RBS also said the deal would extinguish legacy liabilities of almost $377.
The changes would increase the bank's CET1 core capital ratio by 60 basis points, it said.
The merger will also help RBS to focus on its target markets, RBS chief executive Ross McEwan said in a statement.
RBS, which was rescued in 2008 with a nearly $57 billion capital injection by the British government, has been shrinking its overseas operations since the financial crisis to focus on its UK lending operations.