February 6, 2017
Dubai, United Arab Emirates: Emirates National Oil Company (ENOC) announced a record volume of sales of petroleum products of 245 million barrels, reflecting a 5-year rolling average growth of 9 percent, despite the challenging macroeconomic situation.
The announcement was made during the Group's board meeting, which took place on February 2nd, 2017, to discuss 2016 performance, including Dragon Oil, and finalise 2017 plans and budgets in alignment with the Group's strategic direction.
As part of the five-year strategy, ENOC will focus its efforts and investments on fulfilling Dubai's energy needs through the expansion of 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).
Addressing the board, His Excellency 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."
His Excellency Saif Humaid Al Falasi, Group CEO of ENOC, added: "ENOC's pioneering and entrepreneurial attitude is more important than ever to ensure Dubai's energy needs are met at a time of significant change. 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."
With the addition of Dragon Oil, as an upstream segment to its operations, ENOC now has strong competencies across the entire energy value chain providing an upstream asset for the emirate of Dubai, underlining its credentials in bolstering the nation's energy security.
Over the next five years, the Group will focus on expanding capacities to support domestic energy demand in alignment with Dubai Plan 2021 and in preparation for EXPO 2020. This includes a 50% capacity increase of ENOC's Jebel Ali refinery to reach 210,000 barrels per day, as well as the construction of Project Falcon's 19km jet fuel pipeline extension to Al Maktoum Airport by end of 2018.
A key component of the Group's strategic direction is to expand the retail network within Dubai to deliver an array of offerings including non-fuel and other supplementary services. This includes ongoing renovation of major service stations in Dubai and the construction of 54 new stations by 2020.