ADNOC reveals UAE, Saudi expansion plans for 2018
At least 13 ADNOC service stations are expected to open this year, including four in the previously untapped markets of Dubai and Saudi Arabia
ADNOC Distribution has revealed that it will be undertaking expansion activities in 2018, including the opening of at least 13 service stations.
According to the company, a number of these stations will be located in previously untapped markets like Dubai and Saudi Arabia.
Three stations are in the pipeline for Dubai, and nine for Abu Dhabi, Ajman, and Fujairah. At least one station will open in Saudi Arabia, to be operated under a franchise agreement, UAE state news agency, WAM, reported.
ADNOC further revealed that its 2018 plans also include the completion of extensions to three existing stations in Abu Dhabi.
Saeed Mubarak Al Rashdi, acting chief executive officer (CEO) of ADNOC Distribution, commented: "Improving service, choice, and convenience for our customers is our top priority for 2018, as we transform ADNOC Distribution into a more commercially minded and performance-driven company.
“This year, we will deliver new stations quicker and at a lower cost while enhancing our customers’ experience and maintaining 100% focus on health and safety."
Meanwhile, the company’s deputy CEO, John Carey, said: "Our station plans for 2018 are good for customers and shareholders. Our customers will gain greater choice and convenience, including in Dubai for the first time. For shareholders, we are on track with commitments we made about station openings and capital expenditure (CAPEX) in the lead up to ADNOC Distribution’s successful IPO last month."
"In the first quarter alone, four new stations and three major extensions will open in Abu Dhabi and Ajman, including sites on highways like the Sheikh Mohammed bin Rashid Al Maktoum Road, which links Dubai with Abu Dhabi city."
CAPEX on a per site basis has reportedly been reduced for the year, with CAPEX on some still-to-be-built stations cut by as much as 40%.
This reduction, according to ADNOC, was achieved through a “rigorous approach to value engineering”.