"Shell" signs an agreement to open fuel stations in Saudi Arabia

Shell International has signed an agreement with the Saudi (Asyad Holding) group, to open fuel stations bearing its own brand in the Kingdom.

A statement by the Saudi Ministry of Energy indicated that the first Shell-branded fuel stations are expected to open in the last quarter of this year in the city of Riyadh.

Developing service centers and fuel stations

The Ministry of Energy said that this agreement comes within the framework of the efforts of the Permanent Executive Committee for Service Centers and Gas Stations, headed by the Ministry of Energy and membership of a number of relevant ministries, to develop the service centers and gas stations sector, through the entry of major international companies to participate in this sector by developing high development transformation policies, programs and plans. Efficiency contributes to achieving the goals of the Kingdom's Vision 2030.

The Ministry stated that it signed a cooperation agreement with the Public Authority for Small and Medium Enterprises this year, in order to enable investors to obtain commercial franchise rights from qualified establishments with the aim of improving the level of competition, and achieving the Ministry's objectives to ensure the security and reliability of supplies and improve the structure of the sector.​

Saudi Public Investment Fund

On the other hand, “Bloomberg” agency reported, quoting informed sources, that the Saudi Public Investment Fund is emerging as a major competitor to acquire a 10% stake worth $2.5 billion in Vale SA’s operations in the copper and nickel mining sector.

The PIF is in advanced discussions with the Brazilian mining company about a deal to buy about 10 percent in the base metals unit, according to the people, who asked not to be identified while discussing undisclosed information. They said the stake could be valued at about $2.5 billion.

Two sources said the sovereign fund was preparing to take on competitors including Japanese trading house Mitsui & Co and the Qatar Investment Authority. The people said it could take at least several weeks to reach a formal agreement.

The Public Investment Fund may conclude the deal through a joint venture it established in January with Saudi Arabia's Ma'aden.

Diversifying the Kingdom's economy

The joint venture, set up to acquire minority stakes in the iron ore, copper, nickel and lithium businesses, is part of the kingdom's efforts to diversify its economy away from oil and secure access to strategic minerals. The sources indicated that negotiations are ongoing and may end without a deal, or another buyer may appear.

"Vale" company

Spokespersons for the Public Investment Fund and Maaden did not immediately provide comment or some could not be reached. Representatives for Mitsui and the Qatar Investment Authority declined to comment.

Last year, Vale hired consultants to assess options for the company's operations, amid rising demand for metals such as copper and nickel that are key to the global push for cleaner forms of energy. Vale operates nickel and copper mines in countries such as Brazil, Canada and Indonesia.