Energy

The Ministry of Energy’s strategic plan for the energy sector for the period 2008 to 2010 incorporates 16 key initiatives, including a proposal for a nation-wide regulatory framework for the water and electricity sector, a study to update the state of strategic oil reserves, and a study concerning ways to develop water and electricity sources through encouraging private investment.

Ministry of Energy’s strategic plan focuses on sustainability

The plan also includes developing a comprehensive database on the United Arab Emirates’ oil, mineral, water and power resources, and preparing geological and geophysical maps for an area of around 26,715 sq miles.
The ministry’s plan focuses on protecting the country’s financial and natural resources while safeguarding consumers’ rights and investors’ interests. Mohammad bin Dha’en Al Hameli, Minister of Energy, says “The United Arab Emirates’ rapid progress necessitates meticulous planning to ensure that fast-paced social and economic developments are effectively sustained.” He adds, “The Ministry of Energy is working with other producing nations to reduce volatility and maintain stability in world oil markets. On the domestic front, there is rising need for water and electricity, and it is the duty of our Ministry to provide the four northern emirates with the electricity and water they will need in the future. This requires substantial investments in power generation and desalination projects.”

Looking to the future, the Ministry will also focus on renewable-energy research initiatives, according to Al Hameli. He says, “The ministry is vigorously pursuing efforts to gather relevant information and statistics to support research programs. We are keen on promoting alternative energy resources as an essential prerequisite for sustainable development.” In addition, the Ministry of Energy announced in November 2007 that it has completed the first phase of a feasibility study concerning building a nuclear power plant in the Gulf region that would be operational by 2025. The study was done jointly by the Gulf Cooperation Council and the International Atomic Energy Agency.

In mid-November this year, following a meeting of the Organization of Petroleum Exporting Countries (OPEC), H.H. Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates, reiterated the United Arab Emirates’ commitment to continue supplying the international oil market while also promoting increased research into alternative energy sources. He said, “We call for developing clean, safe and reasonably priced alternative sources of energy to ease the burden on producing countries. We, in the United Arab Emirates, are committed to supplying the world oil market to drive human development.”

Regarding investment opportunities for Americans in the United Arab Emirates’ energy sector, Minister Al Hameli says that many current projects require foreign partners, and the free-trade agreement between the United States and the United Arab Emirates will bring even more investment opportunities, especially as Abu Dhabi’s energy sector continues to become more open to foreign investment.

Emarat

“We are promoting our brand beyond Dubai.”

Emarat, established by the Government of the United Arab Emirates in 1981 to market and distribute petroleum products, has steadily expanded over the years and now offers a wide range of high-quality products and services. Ranked one of the biggest suppliers of petroleum products in the local market, Emarat serves thousands of customers each year and has a 51 percent market share.

Emarat distributes petroleum products, manufactures and sells lubricants, distributes natural gas, bottles and distributes liquid petroleum gas (LPG), and provides aviation refueling services. The company now has a network of more than 180 service stations throughout Dubai and the northern Emirates, through which it provides a range of products and services. Emarat aims to move toward supplying compressed natural gas (CNG) to public transport and commercial fleets. Emarat’s vision is “to be the best petroleum corporation in the Middle East region for customer service, employee commitment and return to shareholders.”

First to offer unleaded fuel and strong community player

Emarat is certified to ISO 14001 and ISO 9001. In fact, the award-winning company was the first petroleum player in the Middle East to offer unleaded fuel (in 1992), reflecting its strong commitment to environmental protection. Looking beyond the local market, Emarat launched its first overseas project in 2003 – the Emarat-Misr venture in Egypt.

Well known for its commitment to support community-service projects, Emarat has been sponsoring the Dubai Summer Surprises festival each year right from the inaugural year in 1998.

Reliabe international partner

Emarat has proved to be a very reliable partner to international companies. Through the MELUBCO Lubricant Plant, located in Jebel Ali Freezone which is jointly owned by Emarat, BP and Exxon-Mobil, world-class lubricants are supplied to regional and international markets. Emarat recently set up a gasoline blending terminal in Jebel Ali in cooperation with BP and Trafigura, a major project that will enable Emarat to obtain blended gasoline at lower costs as well as allow the company to offer tank leasing services.

Rashid H. Al Shamsi, General Manager, who has been with the company for 25 years explains, “At Emarat, we have always aligned our vision with the development of the country.” He says that the company is currently experiencing 7 percent annual growth in its fuel and retail sales, and an impressive 10 percent annual growth in its non-fuel-related ventures. He adds, “We have leveraged our reputation and the quality of our services by promoting our brand beyond Dubai.”

Emarat is continuing to expand its network to cope with rising demand for motor fuel and has brought world-class retail services to the local market. Al Shamsi points out, “We have been able to introduce retailing concepts which you cannot find elsewhere, even in the United States. In this way, we are helping to achieve H.H. Sheikh Mohammed’s vision to make the United Arab Emirates a global center for excellence.”

Sectors with strong growth potential

Emarat welcomes new international partnerships. Al Shamsi points out, “We already have good relations with international oil companies, including Shell, BP, and Exxon/Mobil, who are our partners. While further cooperation on the retailing side is limited because of the extensive network we have already established, the sectors where we can imagine further collaboration include oil storage, terminal services, shipping, ocean-tanker transport, refining, specialty lubricant manufacturing, specialty chemical-additive manufacturing, desalinization projects and renewable energies.” He adds that thanks to a resolution passed in October this year by the government of the United Arab Emirates, the private sector can now invest in power and desalinization projects, creating even more opportunities for local investment.

As for the future, Emarat aims to continue to adapt to market changes, to move into new areas, to seek out productive international partnerships and to support the ongoing development of the local economy. “We are building more quality-oriented service stations to keep pace with new developments in the nation, and we are using new technologies at these stations to satisfy our customers,” Al Shamsi says.

Al Shamsi urges American investors to seek out opportunities in the United Arab Emirates. He says, “Because of its long-term stability, liberalized economy and a welcoming approach to foreign investors, the United Arab Emirates is a haven for investment and business, and we will continue to see sustained growth here.”

Emirates National Oil Company

“We can create a great deal of added value.”

Emirates National Oil Company (ENOC), established as the Government of Dubai’s oil and gas company, has steadily expanded its operations to become a key player in a number of sectors and a strategic force behind the ongoing development of Dubai and the United Arab Emirates. Saeed Khoory, Group Chief Executive of ENOC, explains, “Our terminal activities are growing and we are also expanding our upstream, shipping, and refining activities to become a truly global company. We want to grow in each sector of the business.”

ENOC is particularly focusing to grow its upstream activities, which are currently based in the Caspian Sea. The company aims to set up operations in other areas and is also focusing on establishing more international partnerships. “We want to work with international companies that we can add value to and that can add value to us,” Khoory points out. He praises U.S. companies and their advanced technologies, and notes that ENOC already has a productive partnership with Chevron.

One current project for ENOC is to boost its refinery capacity in order to produce all the fuel it needs for its more than 160 service stations by 2009. Khoory explains, “Once we start working the refinery at its full capacity, we will be able to supply our own service stations and thus reduce both our costs and the losses we incur because of rising crude-oil prices.”

Long-term expansion and diversification

ENOC has also enhanced its service offerings and has developed long-term strategies that include further expansion beyond the oil and gas sector. “I believe that growth in the energy sector in the local market is limited, so we are planning to branch out internationally,” Khoory explains, adding, “This is a great opportunity to take H.H. Sheikh Mohammed’s vision to the outside world. Our vision is to go to Asia and Africa, where there is great room for growth in refining, distribution, aviation, lubricants, upstream, and other fields.”

ENOC’s vision is to serve as the world’s reliable, responsible Energy Partner of Choice. The company’s mission is to continue to be innovative, market-responsive and quality-driven while also achieving best-in-class management and financial performance. ENOC aims to continue to demonstrate a commitment to the highest possible standards, including environmental standards, and to serve as an excellent corporate citizen by supporting projects that benefit society.

For American companies looking for a dynamic energy-sector partner, ENOC has positioned itself as an attractive choice. To potential international partners, Khoury says, “Dubai is the global hub for the energy sector, and doing business with Dubai partners like ENOC will open up a lot of business opportunities, not only in the United Arab Emirates but in the whole region, from Africa to India to Singapore. Working together, we can create a great deal of added value.”