Enoc makes Saudi foray

DUBAI — Emirates National Oil Company, better known as Enoc, on Tuesday announced its first foray into the regional market by signing a Dh400 million joint venture deal to enter the lucrative Saudi market.



By Muzaffar Rizvi

Published: Wed 29 Aug 2012, 10:21 PM

Last updated: Tue 7 Apr 2015, 2:34 PM

Dubai-based leading petroleum dealer signed a 50:50 partnership with Aldrees Petroleum & Transport Services Company to set up 40 service stations across Saudi Arabia by 2015. In first phase, four service stations will be established with an initial Dh45 million investment by next year.

Burhan Al Hashemi, managing director of Enoc Retail, the specialised retail business of Enoc, and Engineer Abdulelah Saad Aldrees, chief executive officer of Aldrees, signed the agreement in Dubai yesterday.

“The first service station with all Enoc Retail brands will be operational by first quarter of 2013,” Burhan Al Hashemi told Khaleej Times on the sidelines of a Press conference.

He said Enoc Retail is looking to expand its retail operations in the region after the Saudi venture. “We are examining two other regional markets,” he said, adding that the feasibility studies are at very initial stage.

“Our partnership with Aldrees marks a true milestone in the operations of Enoc Retail. This is a perfect example of two organisations drawing on their strengths to offer value to customers,” Al Hashemi said. In reply to a question about the design of new service stations and logo of new joint venture company, he said some changes are expected at a later stage.

Under the deal, the service stations will feature all the specialised and popular brands operated by Enoc including Zoom, Pronto, Super Lube and Super Wash. The new stations will create several new jobs for Saudi nationals during the first phase of the project, which is expected to complete by 2015. The expansion in second phase will depend on the market demand.

“Enoc is focused on expanding its business presence regionally and internationally, and Saudi Arabia is a strategic market that offers perfect market synergies for our growth,” Saeed Abdullah Khoory, Enoc’s chief executive officer, said in a statement.

Enoc Retail will offer its full breadth of expertise in retailing to Aldrees in developing the service stations. In addition to showcasing a choice of fuel retailing products, the stations will also have other lifestyle choices such as restaurants, fresh food and coffee, and convenient automotive services. A number of environment-friendly products and services that are offered by Enoc, such as waterless car wash and green lubricants, will also be made available at the stations in the kingdom.

“With a network of more than 450 service stations in the kingdom, Aldrees is an industry leader in petroleum retailing in Saudi Arabia. In line with our commitment to add value to our stakeholders, we are continuously exploring expansion opportunities that bring clear differentials to the market,” Abdulelah Saad Aldrees said.

Aldrees is one of largest Saudi petroleum retail and commodity hauling companies with a network of more than 450 petrol filling stations. The company has a fleet of 1,032 tractor heads with 1,376 cargo carriers ranging from chemical/lubricant tankers, trailers, bulkers to flat beds.

Saad Aldrees said his company serves a majority of the transport market and supplies fuel to key accounts in both private and government sectors. “We are confident that the joint venture will create a new history in petroleum retailing in the GCC region.”

In reply to a question, he said the joint venture service stations will be first developed in the Eastern Province and later in the central region and western part of the kingdom. “We have identified the locations for first four stations, which are expected to be functional by next year.”

To a question, he said Aldrees also plans to upgrade the existing service stations in the kingdom and the company may follow the same business model to improve the services.

“Enoc has a tremendous breadth of retailing experience that is a perfect fit for our core strengths. The new stations will also be of immense value to travellers, especially during the Hajj season,” he said.


More news from Local Business