Adnoc has unveiled its plans to open 20 Adnoc service stations in Saudi Arabia. The company has entered a 15 year agreement with Al Olaibi Group covering operation of service stations at strategic locations in the KSA region including Mecca, Medina and Riyadh. The company will work under ADGC (Adnoc Distribution Global Company) brand. Adnoc has already been providing engineering and technical consultancy for two years. This new agreement will help expand its work portfolio into areas of Marketing, Retail, Training and Customer Service.
Chairman ADGC Mr. Abdulla Salem Al Dhaheri unveiled the motive behind this agreement, highlighting importance of expansion into KSA for the company’s future profitability, saying, “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,”
Mr. Al Dhaheri revealed capitalizing on the opportunity available to upgrade service stations. The company also plans to increase its market reach even further by expanding into other countries including Iraq, Libya, and North Africa. The company will have lower profit margins on petrol in KSA because of subsidized prices. However, the company is aiming to strengthen its business by earning higher margins on items like Retail, Food and Beverages.