Dubai-based Emirates National Oil Company (ENOC) announced that sales of petroleum products reached 245 million barrels in 2016, up 9 per cent despite the challenging macroeconomic environment.
The announcement was made during the group’s board meeting on February 2, 2017.
As part of its five-year strategy, ENOC is focussing on expanding its refinery and service station network, building terminals storage capacity, and increasing its market share in the marketing of diesel, jet fuel and liquefied petroleum gas (LPG), it said in a statement.
This includes a $1bn expansion of its Jebel Ali refinery which will increase capacity by 50 per cent to reach 210,000 barrels per day, and the construction of Project Falcon’s 19km jet fuel pipeline extension to Al Maktoum Airport by end of 2018.
ENOC is also looking to grow its retail network within Dubai, offering non-fuel and other supplementary services. This includes ongoing renovation of major service stations and the construction of 54 new stations by 2020.
Meanwhile, the recent acquisition of Dragon Oil has also added an upstream segment to its operations, said ENOC. Dragon Oil, which primarily produces oil from Turkmenistan’s Cheleken field, also has exploration assets in Tunisia, Iraq, Afghanistan, Egypt, and Algeria.
Overall, the Dubai government-owned company aims to support domestic energy demand in alignment with Dubai Plan 2021 and in preparation for Expo 2020, the statement added.
Saeed Al Tayer, ENOC’s vice chairman, said: “As the UAE economy grows, the demand for energy is expected to grow gradually. Therefore, it is crucial that national oil companies focus on investing in projects that contribute to the UAE’s global energy leadership and commitment to green and sustainable growth while ensuring its energy security.”
ENOC’s group CEO Saif Humaid Al Falasi added: “Increasing demand coupled with a low oil price indicates the need for strategic responses centred on value-chain integration, ensuring capital discipline and maximising operational efficiency.
“While we enjoy strong cash liquidity and a healthy capital structure, we will continue to focus on diversifying our revenue streams by investing in operations that are well positioned to generate sustainable growth. We intend to achieve this through an integrated development model which draws on synergies between our upstream and downstream business segments.”