VLEEY Valeo SE (PK)

By Patrick Costello

France's Total SA (FP.FR) said Thursday that it signed a joint-venture agreement with Saudi Aramco to develop a network of fuel and retail services in Saudi Arabia, making the French group the first international oil major to invest in the country's fuel retail network.

The two companies plan to invest roughly $1 billion in the Saudi fuel retail market over the next six years under the 50-50 joint venture, the French oil company said.

Total said the agreement is part of its overall strategy "to expand in fast-growing markets worldwide."

Total and Saudi Aramco have also signed an agreement to acquire the Tas'helat Marketing Company and the Sahel Transport Company, including their existing network of 270 service stations and fuel-tanker fleet. Total and Saudi Aramco plan to modernize the network and build additional service stations at select locations, the French company said.

The operation remains subject to approval from the relevant administrative authorities, Total said.

Write to Patrick Costello at patrick.costello@dowjones.com.

(END) Dow Jones Newswires

February 14, 2019 06:36 ET (11:36 GMT)

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