Saudi Arabia will have 20 Adnoc-branded service stations across the kingdom, kicking off the oil company's expansion beyond the UAE's borders, where the subsidised price of petrol holds back profitability for operators.
The first phase of the 15-year franchise agreement with Saudi-based Al Olaibi Group includes the operation of service stations at key locations in Riyadh, Mecca and Medina under the trademark and brand name Adnoc Distribution Global Company (ADGC), a statement from ADGC said yesterday.
The deal expands on Adnoc’s role agreed two years ago to provide technical and engineering consultancy services to Al Olaibi, which already distributes and transports petroleum products in the kingdom. Adnoc will now also provide retail, training, marketing and customer services expertise.
“Saudi Arabia is one of the most significant and strategic markets in the region. This agreement also marks a positive step in our efforts to strengthen cooperation among our companies working in the area of petroleum product distribution and service station management in Saudi Arabia,” said Abdulla Salem Al Dhaheri, the chairman of ADCG.
Mr Al Dhaheri said last year that Saudi wanted to upgrade its service stations, with 15 licences for 15 different operators up for grabs.
As well as an expansion across the Emirates, Adnoc has also been looking at opportunities in Iraq, Libya and North Africa because of demand.
Since the price of petrol is subsidised in the UAE, operators are working to generate better profit margins from other businesses, such as retail and food and beverage.
However, the returns from these areas do not fully compensate for the losses on the sale of fuel.
While petrol prices in Saudi Arabia are lower than in the UAE – 16 cents a litre compared to 47 cents according to globalpetrolprices.com data this week – the subsidy is absorbed by the national oil company Saudi Aramco.
The UAE's Enoc expanded into the kingdom in 2012 after closing service stations in the Northern Emirates to reduce losses.
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Virtuzone GCC Sixes
Date and venue Friday and Saturday, ICC Academy, Dubai Sports City
Time Matches start at 9am
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A Blighty Ducks, Darjeeling Colts, Darjeeling Social, Dubai Wombats; B Darjeeling Veterans, Kuwait Casuals, Loose Cannons, Savannah Lions; C Awali Taverners, Darjeeling, Dromedary, Darjeeling Good Eggs
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Mubalada World Tennis Championship 2018 schedule
Thursday December 27
Men's quarter-finals
Kevin Anderson v Hyeon Chung 4pm
Dominic Thiem v Karen Khachanov 6pm
Women's exhibition
Serena Williams v Venus Williams 8pm
Friday December 28
5th place play-off 3pm
Men's semi-finals
Rafael Nadal v Anderson/Chung 5pm
Novak Djokovic v Thiem/Khachanov 7pm
Saturday December 29
3rd place play-off 5pm
Men's final 7pm
India Test squad
Kohli (c), Dhawan, Rahul, Vijay, Pujara, Rahane (vc), Karun, Karthik (wk), Rishabh Pant (wk), Ashwin, Jadeja, Kuldeep, Pandya, Ishant, Shami, Umesh, Bumrah, Thakur
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Tottenham Hotspur 0 Everton 1 (Calvert-Lewin 55')
Man of the Match Allan (Everton)
