Emirates National Oil Company

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Emirates National Oil Company (ENOC)
شركة بترول الإمارات الوطنية
State-owned enterprise
Industry Energy: Oil and gas
Founded 1993
Headquarters Dubai, UAE
Area served
Worldwide
Key people
Hamdan bin Rashid Al Maktoum
(Chairman)
Ahmed Humaid Al Tayer
(Vice Chairman)
Saif Al Falasi
(Group CEO)
Products
Revenue US$14,6 billion[1] (2015)
Total assets US$18,2 billion[1] (2015)
Owner Investment Corporation of Dubai
Number of employees
9,000[2] (2016)
Website www.enoc.com

ENOC Group (Emirates National Oil Company) is an integrated international oil and gas player operating across the energy sector value chain. As a wholly owned entity of the Government of Dubai, ENOC owns and operates assets in the fields of exploration and production, supply and operations, refining, terminals, fuel retail, aviation fuel and petroleum products for commercial and industrial use. The Group’s general business operations include automotive services, non-fuel foodservice retail and fabrication services.[3]

Operating in over 60 markets, the Group employed a workforce of 9,000 employees as of 2016.[4][2]

History[edit]

1993 to 1999[edit]

ENOC was established at the end of 1993 by the Dubai government to promote joint venture petroleum projects inside and outside Dubai. ENOC and Caltex announced in January 1997 that they had set up a joint company, Emirates Petroleum Products Company (EPPCO) Lubricants, to produce and market engine oil and lubricants in the UAE.[5]

Technipetrol, the Italian subsidiary of France's Technip, was engaged by ENOC to build ENOC's refinery in Jebel Ali. ENOC awarded it a $137 million contract in June 1997 and a $46 million contract in January 1998. The condensate refinery was opened in 1999 with a refining capacity of 120,000 b/d of aviation fuel, diesel, naphtha and fuel.[5] Jebel Ali is the second-largest refinery in the UAE.[6]

2000 to 2010[edit]

Early in 2000, ENOC revealed that it intended to move into the domestic petroleum retail market, setting up 30 gasoline stations in Dubai and other emirates.[5] It took over the Dubai Natural Gas Company (DUGAS) in an effort by the government of Dubai to consolidate its oil and gas production and distribution services.[7] ENOC's trading arm was set up in 2001 to help Dubai meet its fuel needs and minimize the cost of subsidies.[8]

ENOC was the first oil company in the UAE to introduce lower-sulphur diesel at its service stations in 2007.[9]

An $850 million investment in 2010 lifted the capacity of the Jebel Ali refinery to 120,000 barrels per day from 70,000 bpd.[2] In the same year, ENOC signed an agreement with Galana Oil Kenya to enter the Kenyan market.[10]

2011 to 2017[edit]

ENOC acquired the remaining 46% of Dragon Oil for £3.7 billion in June 2015.[11] The main asset of Dragon Oil is the offshore Cheleken field in Turkmenistan that produces about 100,000 barrels of oil per day (bpd).[12] With the purchase of Dragon Oil, the upstream output of ENOC doubled.[2] ENOC also expanded its financing base with a $1.5bn syndicated bank loan.[8]

In March 2016, ENOC announced the construction of the underground 16 km jet fuel pipeline expansion linking its storage space terminal in Jebel Ali with Al Maktoum International Airport.[13] In June, the company secured a $230 million loan from Industrial and Commercial Bank of China to finance its expansion.[14] In September, ENOC tapped French engineering firm Technip to lead a self-financed $1bn expansion of its Jebel Ali plant to increase its refining capacity by 50 per cent, or 70,000 barrels per day, to a total of 210,000 bpd.[15][16] In 2016, the company sold 245 million barrels, with a five-year rolling average growth of 9 percent.[17]

In April 2017, ENOC awarded Rotary Engineering of Fujairah a contract to build 12 storage tanks as part of the refinery expansion project. The additions will be able to store 450,000 cubic metres of jet fuel, naphtha and petrol blends.[18] While the company's long-term aim is upstream expansion, its main short-term focus remains on domestic growth. This includes the Jebel Ali refinery expansion project and a 50 per cent expansion of its retail chain to 170 petrol outlets and a move into Saudi Arabia.[12]

Operations[edit]

The ENOC Group operates two business arms: energy operations and general services. Its energy business comprises Exploration and Production, Supply Trading and Processing, Terminals, Fuel Retail, Aviation, and Products. Its subsidiary enterprises include convenience store franchises, added value propositions, automotive and fabrication services.[19]

The group is made of more than 30 subsidiaries, most of them in the UAE, but also in Saudi Arabia, Djibouti, Tanzania, Morocco, United Kingdom, Singapore, Turkmenistan and Malaysia.[1] One of those subsidiaries, Horizon Terminals Limited (HTL), was created to consolidate the existing terminalling investments of ENOC and expand the business globally. Horizon Terminals has locations in UAE, Saudi Arabia, Singapore, Korea, Djibouti and Morocco.[20] As of August 2016, ENOC had a total of 9,000 employees, of whom 146 were employed directly at the refinery, and about 2,000 worked at the main Dragon Oil facility in Turkmenistan.[2]

ENOC produces about 100,000 barrels of crude per day from the Turkmenistan oilfield and owns and operates the 140,000 bpd Jebel Ali refinery as well as more than 115 service stations throughout the UAE. The company claims volume sales of 245 million barrels oil equivalent in 2016. While about 45 million to 50 million barrels of sales were accounted for by its physical operations, the bulk of its sales volume – nearly 200 million barrels of oil equivalent – was accounted for by its trading arm, which operates out of offices in Dubai, Singapore and London, and trades derivatives, such as "paper barrels" and oil futures, as well as physical oil.[8] ENOC is a shareholder in the Fujairah bunkering tank farm.[5]

The Jebel Ali refinery processes condensate and produces fuels for the local market as well as naphtha, a petrochemicals feedstock sold in Asia.[2] ENOC blends fuel additives in its storage tanks to provide the gasoline it sells in Dubai and neighboring countries.[21]

ENOC has the largest lubricant blending plant in the Middle East with a production capacity of 250,000 MT/annum.[22] The lubricant products of ENOC hold the Emirates Authority for Standardization and Metrology's (ESMA) Emirates Quality Mark (EQM).[23]

ENOC opened the UAE's first solar-powered service station.[24] It also created UAE’s first ever smart gas station, with an array of LED screens displaying information for drivers.[25] The company is investing in charging stations for electric cars.[26]

Because of fuel subsidies, stations in the UAE have historically relied on retail sales at stores and food outlets to generate most of their revenue. As of 2016, ENOC operated more than 200 convenience stores in Dubai, Abu Dhabi, Sharjah, Ras al-Khaimah, Fujairah and Umm al-Quwain.[27]

Corporate affairs[edit]

ENOC is owned by the Investment Corporation of Dubai, the emirate’s sovereign wealth fund, and does not report full financial results publicly.[8] The chairman of ENOC is Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance.[12]

Financial data in US$ millions[1]
Year-end 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenue 4,930 7,468 9,964 11,715 8,574 10,211 13,311 15,641 18,604 20,924 14,690
Assets 2,744 3,625 5,118 6,247 7,006 7,997 9,567 13,700 18,042 20,254 18,248

Other activities[edit]

The company hosted the first edition of Middle East Retail & Downstream Conference, a gathering of fuel retail operators in the region, in May 2017.[28]

ENOC is a main sponsor of the educational programs of the Emirates Environmental Group.[29]

External links[edit]

References[edit]

  1. ^ a b c d "ENOC: Annual Update 2015" (PDF). ENOC. 
  2. ^ a b c d e f "Enoc readies contract for major Jebel Ali plant expansion". The National. August 16, 2016. 
  3. ^ The Report: Dubai 2008. Oxford Business Group. 2008. p. 123. ISBN 978-1-902339-05-4. 
  4. ^ "ENOC achieves firm downstream growth in 2016". Arabian Oil and Gas. May 11, 2017. 
  5. ^ a b c d United Arab Emirates: A New Perspective. Trident Press. 2001. pp. 238, 266. ISBN 1-900724-47-2. 
  6. ^ Wang, Henry K. H. (2017). Energy Markets in Emerging Economies. Routledge. p. 238. ISBN 978-1-315-54204-1. 
  7. ^ The Economy of Dubai. Oxford University Press. 2016. ISBN 978-0-19-875838-9. 
  8. ^ a b c d "Enoc's trading arm drives record oil sales volumes". The National. February 6, 2017. 
  9. ^ The Report: Ras Al Khaimah 2008. Oxford Business Group. 2008. p. 61. 
  10. ^ "Dubai's ENOC enters Kenyan market with Galana". Arabian Business. 1 July 2010. 
  11. ^ "Dragon Oil shares are on fire after Emirates National Oil Company's bid success". Evening Standard. 15 June 2015. Retrieved 7 January 2015. 
  12. ^ a b c "Enoc to expand with exploration and production unit". The National. May 25, 2017. 
  13. ^ "Enoc to begin construction of Project Falcon extension". Emirates 24/7. March 17, 2016. 
  14. ^ "Dubai's Enoc secures Dh844m loan from Chinese bank for expansion". Emirates 24/7. June 14, 2016. 
  15. ^ "UAE's ENOC to self-fund refinery expansion - CFO". Reuters. October 20, 2016. 
  16. ^ "Technip wins ENOC refinery expansion contract". Construction Week Online. September 20, 2016. 
  17. ^ "Dubai's ENOC posts record petroleum sales volume in 2016". Arabian Business. 10 February 2017. 
  18. ^ "Dubai's Enoc awards contract in Jebel Ali refinery expansion". The National. April 10, 2017. 
  19. ^ "Our businesses: overview". ENOC. 
  20. ^ "Profile". Horizon Terminals. 
  21. ^ "Dubai refiner Enoc will expand Fujairah fuel storage". Arabian Business. 5 January 2011. 
  22. ^ "UAE- Enoc's downstream business sees growth". MENAFN. 2017-10-05. 
  23. ^ "ENOC's lubricants receive Emirates Quality Mark from ESMA". Arabian Oil and Gas. June 5, 2017. 
  24. ^ "Enoc opens emirate's first solar powered service station". Arabian Business. 27 April 2017. 
  25. ^ "Enoc in smart gas station technology tieup". GDN Online. 
  26. ^ "In oil-rich UAE, fuel retailer is turning to electric car chargers". Gulf News. May 4, 2017. 
  27. ^ "Enoc to open more Zoom stores across the UAE". The National. August 22, 2016. 
  28. ^ "ENOC's inaugural Middle East Retail & Downstream Conference throws spotlight on sustainability and innovation in the region". Albawaba Business. May 21, 2017. 
  29. ^ "ENOC and the Emirates Environmental Group (EEG) conclude educational series to promote environmental awareness". Albawaba Business. January 25, 2017.