Dubai-based Emirates National Oil Company (Enoc) has formed a joint venture with fellow Dubai group Tristar Transport to establish a petroleum and chemicals logistics business in Saudi Arabia.

The companies plan to invest an initial SR30m ($8m) to operate a small fleet of vehicles, then expand this fleet to 500 vehicles by 2017.

The joint venture will also operate a warehousing facility for the storage of oil and chemicals, and a tank-cleaning facility.

The Enoc-Tristar joint venture will locate its offices in Jubail on Saudi Arabia’s eastern Gulf coast.

Enoc earlier signed a joint venture agreement with Saudi Arabian petroleum retailer Aldrees Petroleum & Transport Services Company to set up services stations at different locations across the kingdom.