Dubai – MENA Herald: Emirates National Oil Company (ENOC) announced its local and global growth strategy at the Group’s 2016 Annual Performance Meeting.
His Excellency Saif Al Falasi, ENOC’s Group Chief Executive Officer, explained that the company’s strong integrated business model will enable it to withstand the challenges associated with the ongoing oil price volatility.
Despite the difficult macroeconomic situation, ENOC revenues increased by 45 per cent over the last five years, reflecting strong operational and sales performance, and increased efficiencies in supply chain management in domestic and overseas markets such as North Africa and the Far East.
In 2015, the volume of sales of crude oil and petroleum products reached a historic high surpassing 220 million barrels, reflecting an increase of 16% over the previous year.
“Over the last 30 years, ENOC developed an expertise that has helped it grow within this great nation and beyond. Our team is capable of understanding the unique needs of the local and regional market, as well as staying resilient during challenging economic cycles,” said Al Falasi.
“As we evolve, we will capitalise on our experience and continue to uphold the values associated with being an employer of choice and a responsible corporate citizen to fortify our position as an international oil and gas player. Our strategy is focused on diversifying our revenue streams by investing in operations that are well positioned to generate sustainable growth. We intend to achieve this by strategically positioning ourselves and our portfolio and by attracting and retaining the right talent.”
Al Falasi explained that while the Dubai-headquartered company continues to be a national champion for the UAE and an integral part of Dubai’s success story, the group is studying opportunities to expand its international operations to deliver on its mandate to supply energy to the United Arab Emirates.
“While the ongoing oil price instability is undoubtedly challenging, the flipside is that this environment is particularly fertile for acquisitions, as certain companies look to exit certain industry sectors and markets,” said Al Falasi.
In terms of domestic expansion, ENOC is set to implement an ambitious plan for its service stations: the retail arm is targeting a 40 per cent growth for its service station network by 2020, which includes ongoing renovations of major locations and the construction of an additional 54 new venues in Dubai. Moreover, the company is planning a significant expansion of the Jebel Ali condensate refinery to accommodate rising domestic fuel demand and increasingly stringent product specifications.
Al Falasi said: “The Ministry of Energy’s decision to align gasoline and diesel prices with market prices enabled us to move forward with our expansion plans and continue investing in technologies that enhance customer service and experience. We will also meet the growing public demand for more service stations in line with the expected population growth in the UAE over the next five years.”
Last year marked a key milestone in ENOC’s history with the completion of key projects strategically designed to enable the outstanding growth of Dubai’s aviation industry and enhance the Emirate’s energy security. Project Falcon, a 58km jet fuel pipeline from Jebel Ali to Dubai International Airport, will contribute 55 percent of the ultimate fuel demand of Dubai International Airport. The Dragon Oil acquisition transformed the company into a fully integrated oil and gas business and gave Dubai ownership of assets capable of producing over 100,000 barrels per day of oil. These achievements are aligned with the Group’s strategic direction to meet the energy needs of the UAE, expand its operations and invest in the infrastructure required to facilitate Dubai’s growth.
“With Dragon Oil, we are now a vertically integrated oil & gas company that is well positioned to strengthen our nation’s energy security,” continued Al Falasi. “With this acquisition, we hope to partner, compete, and grow together with the world’s leading international oil and gas players, as well as regional national oil companies.”