Saudi Aramco is in negotiations with the Turkish Defense Industry Mutual Fund (OYAK) regarding a stake in its fuel distributor, Güzelenerji. Reports indicate the stake could range from 30% to 49%. The negotiations have not yet resulted in a final agreement, and specific terms are still under discussion.

Güzelenerji is currently the fourth largest fuel distributor in Turkey, operating over 1,000 gas stations (some reports say 1,055), with a diesel market share of approximately 8.54% and a gasoline market share of about 7.47%, giving it a combined market share between 8% and 9%. The company operates three retail brands: TotalEnergies, M Oil, and Türk Petrol, and has oil storage and liquefied petroleum gas facilities in six locations: Gebze, Aliağa, Marmara Ereğlisi, Ankara, Yarımca, and Samsun, with a total capacity of 550,000 cubic meters. It also has a lubricating oil production plant in Izmir.

Uğur Doğan, head of OYAK's energy business, confirmed the existence of negotiations in May this year but emphasized that a complete sale or transfer of the company is not an option; the goal is to introduce a strategic shareholder rather than liquidate. OYAK's general manager, Murat Yalçıntaş, further stated on September 22 that the results of the transaction are expected to be known by the end of this year or early next year. Previously, reports indicated that Saudi Aramco executives had inspected Güzelenerji's main oil storage facilities in Turkey as part of their due diligence.

This is not Saudi Aramco's first attempt to enter the Turkish downstream fuel retail market. In 2017, Saudi Aramco participated in the bidding for Petrol Ofisi, which was sold by OMV Group, but ultimately lost to Dutch energy trader Vitol, who made a higher bid. If the current negotiations with OYAK are successful, it will mark Saudi Aramco's significant re-entry into the Turkish gas station network after nearly a decade; once the deal is completed, some gas stations currently branded as TotalEnergies may be rebranded under the Saudi Aramco name.

This transaction is part of OYAK's broader internationalization strategy. OYAK aims to transform from a pure fuel distributor into an international energy group with refining and production capabilities by 2030, considering building new refineries in Turkey and not ruling out acquiring existing capacities overseas. Meanwhile, more subsidiaries under OYAK are preparing to list on the Istanbul Stock Exchange. On a bilateral level, energy cooperation between Saudi Arabia and Turkey has noticeably intensified recently, with both parties signing a joint solar investment agreement worth approximately $2 billion in February this year.

From a financial perspective, Saudi Aramco, as the buyer, aims to secure refined oil sales exports through its stake in the downstream retail network, diversifying its revenue structure that has relied solely on crude oil exports. Additionally, leveraging Güzelenerji's existing storage and transportation assets allows for a quicker entry into the Turkish retail market, avoiding the time costs associated with building a gas station network from scratch. OYAK, as the seller and partner, seeks to exchange part of its equity for capital and technological collaboration, providing financial leverage for its expansion into refining. If the deal goes through, TotalEnergies' brand retail network in Turkey will be directly impacted, as its existing gas stations may be replaced with Saudi Aramco branding, shifting the retail power dynamics.

The transaction still requires approval from the Turkish Competition Authority's antitrust review, which is a key prerequisite for the final completion of the deal.

Source: Public Information