Saudi Arabian Oil Co. said on Wednesday that it is establishing Saudi Aramco Retail Co. to enable growth in the downstream sector. The kingdom's fossil fuel monopoly said it bundled fuel and nonfuel activities in a subsidiary with the intention to enable "sustainable and profitable" operations. It cited the "changing dynamics" in the market sector.
"Integrating fully across the hydrocarbon value chain is key to capturing maximum value from our resources. We are very excited with the establishment of RetailCo. It will leverage synergies in our business model and position us to actively participate in the customer-facing segment of the downstream value chain," said Abdulaziz al-Judaimi, senior vice president for downstream in the holding, which is better known as Saudi Aramco.
The firm has "a phased approach" in the expansion of filling stations in the country, the announcement reveals and adds it would work on "consumer focus culture." Aramco is officially planned for a stock market debut within just over two years, but the initial public offering has been postponed several times.
