Dubai’s Emirates National Oil Company (ENOC) has seen a record volume of sales of petroleum products of 245 million barrels in 2016 despite challenging market conditions.
The oil major says it has achieved a five-year rolling average growth of 9 per cent and it will focus on expanding capacities in the coming years.
As part of its strategy 2016-2021, launched in August last year, ENOC will focus its efforts and investments on fulfilling Dubai’s energy needs through the expansion of its refinery and service station network as well as building terminals storage capacity, it said in a statement sent out to the media.
The oil firm also aims to increase its market share in the marketing of diesel, jet fuel and liquefied petroleum gas (LPG).
“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,” Saeed Al Tayer, Vice Chairman of ENOC Group.
Saif Humaid Al Falasi, Group CEO of ENOC Group, said that there was a need for strategic response in times of increasing demand coupled with a low oil price.
He added the plans and strategy for 2017 will be 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,” Al Falasi said.
The Dubai government-owned group said that over the next five years, it will focus on expanding capacities to the emirate’s Dubai Plan 2021, launched in 2014, and Expo 2020.
The ongoing expansion measures include a 50 per cent capacity increase of ENOC’s Jebel Ali refinery 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.
The company has also plans to expand its retail network within Dubai by adding 54 new stations by 2020.
In addition, ENOC has also been focusing recently on its fully-owned upstream subsidiary Dragon Oil.
In January, the group reshuffled its board by appointing Sheikh Hamdan bin Rashid, Deputy Ruler of Dubai, Minister of Finance and Chairman of ENOC Group, at the helm of Dragon Oil. Earlier in the month, Al Falasi was named as the CEO of the company, which has exploration assets in Afghanistan, Algeria, Egypt, Iraq, the Philippines and Tunisia.