UAE: ENOC eyes expansion after fuel deregulation
ENOC had hired a five-person team in June 2015 to work on mergers and acquisitions as it sought to expand beyond Dubai
Dubai-based Emirates National Oil Company (ENOC) is planning a regional expansion strategy following the UAE's deregulation of fuel prices, the company announced on Wednesday, 29 July, 2015.
The move, announced on Wednesday, 29 July, 2015, is expected to lift financial pressure on the company.
Banking sources told Reuters in February 2015 that ENOC had hired a five-person team to work on mergers and acquisitions as it sought to expand beyond Dubai.
ENOC has "struggled" financially in recent years since it was obliged by the UAE rules to sell gasoline at a "fraction of international market rates", Arabian Business reported.
The UAE's decision to deregulate fuel prices is expected to ease pressure on the company.
ENOC is owned by Dubai's government, and operates service stations, fuel terminals and oil tankers as well as a refinery.
The company said in a statement that it would now look at accelerating plans to enter "new geographies regionally".
"With the Ministry of Energy having deregulated oil prices, this decision will now enable us to move forward with our expansion plans," ENOC said, without elaborating.
The company secured a $1.5bn, nine-year loan from 21 banks in June 2015 to support its growth.