Emirates National Oil Company launches bunkering subsidiary

This joint venture between ENOC, which holds 51% of the equity, the Fujairah Government, which has a 25% stake holding, and Kuwait's Independent Petroleum Group (IPG) with the remaining 24%, the new subsidiary has a share capital of Dhs5 million. It will provide offshore and in-port marine products supply in Fujairah.

"With one of the world's highest volumes of ships requiring bunkering and an average monthly volume demand in excess of 800,000 tons Fujairah is an obvious choice as a base for this new bunkering operator, "explained Hussain Sultan, ENOC Group Chief Executive and Board Member.

"The potential of the market is evidenced by the fact that currently more than 12 million metric tons of bunker fuel are presently being delivered offshore the UAE. We plan to enter the Dubai bunker market within the next six months."

ENOC Bunkering (Fujairah) LLC will provide a range of bunkering and cargo services including transportation, trans-shipment, storage, blending and marine fuel oil sales through its main office in Fujairah and ENOC branch offices worldwide.

"The local market will be supplied using a 63,000 DWT (dead weight tonne) transportation and storage vessel and two 7,000 DWT bunker supply tankers," explained Hussain Sultan. "An additional bunker supply tanker will be added to this fleet within the next quarter. These vessels will be chartered from another ENOC subsidiary, Dubai Shipping Company LLC, and will put ENOC Bunkering (Fujairah) LLC well ahead of the competition by offering the sector the youngest fleet in the region."

ENOC Bunkering (Fujairah) LLC currently has a delivery capacity of 150,000 metric tonnes per month by utilising Vopak ENOC Fujairah Limited's storage facilities.

"Business synergies among Group subsidiaries greatly enhance our competitiveness," added Sultan. "ENOC Bunkering (Fujairah) LLC will also benefit from the safety, health and environmental management structure and policies of the Group and clients can be assured of the quality commitment which is a hallmark of ENOC."

ENOC Bunkering (Fujairah) LLC is targeting a turnover of US $165 million in its first year of operation rising to US $360 million within three years.

"Though the competition is tough, we believe we can quickly make our mark by providing state-of-the-art equipment, group shipping and bunkering expertise and the environmental support back-up of ENOC.

"We will also contract with an oil spill clean-up operation to ensure the rapid implementation of emergency procedures in the event of an environmental incident," added Sultan. "Our commitment to protect the coastline of this and other emirates, is rock solid."

Fujairah's investment in the new subsidiary has been channelled through the recently-created Fujairah Energy Projects LLC, a joint venture with ENOC. The company, which has a paid-up capital of Dhs20 million was established to invest in Fujairah's energy sector.

"ENOC Bunkering (Fujairah) LLC is the first project to emerge from this newly-created investment company, more will follow," said Sultan. "This is further evidence of our commitment to Fujairah and our determination to expand its industrial base."