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ENOC to Suspend Acquisitions in 2010


Dubai, United Arab Emirates : 26 February 2010

Emirates National Oil Co (ENOC), Dubai’s government controlled refiner will not consider acquiring any assets during current to concentrate on existing businesses, a senior executive said on Thursday.

ENOC, a downstream-focused company in possession of the emirate’s sovereign wealth fund Investment Corporation Dubai, manages oil tankers, fuel terminals and service stations in the Gulf.

Petri Pentti, chief financial officer of the company said that it was premature at the moment to confirm that there would be no acquisitions at all, but he realized that now is the time to concentrate on existing refineries. He further informed that the company possessed 6.5 billion dollars worth of assets on 31 December, 2009.

Petri Pentti said that during the current year the top most priority will be upgrading existing refineries and vertical integration of the business and for consolidation purpose, there would be no new acquisition. ENOC is increasing capacity of Jebel Ali refinery from 70,000 barrels per day at present to approximately 120,000 barrels per day after finishing 850 million dollar renovation in December and putting new units in working conditions.

He said that the new units will begin production in May. The project’s original budget was about $500 million, but just like numerous other energy projects throughout the world, Jebel Ali also went through cost inflation because oil peaked to a record high to about 150 dollar per barrel in 2008. Out of four refineries in the UAE, Jebel Ali is the smallest. The biggest one is the Ruwais plant operated by the refining unit of the Abu Dhabi National Oil Co (ADNOC) with a production capacity of 415,000 barrels per day.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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