Emirates National Oil Company (Enoc) said yesterday it has created a dedicated exploration and production (E&P) unit as part of its previously stated aim to look for opportunities to expand its overseas upstream assets portfolio.
The Dubai-based national energy company has been developing a strategy to become a more expansionary integrated oil and gas company since the liberalisation of fuel pricing in the UAE and its full acquisition of Dragon Oil, its main oil-producing asset, two years ago.
This year, Enoc hired Ali Rashid Al Jarwan, who had been chief executive of Adma-Opco, one of Abu Dhabi National Oil Company’s main offshore operating companies, to head its Dragon Oil unit.
“By acquiring Dragon Oil, and its subsequent integration, Enoc has provided an upstream asset for the emirate of Dubai, underlining our commitment in strengthening the nation’s energy security,” said Saeed Al Tayer, Enoc’s vice-chairman, in a statement announcing the new unit. “Our long-term goal is to grow our international operations to expand our reach and upstream expertise.”
Enoc, which is owned by the Dubai Government and whose chairman is Sheikh Hamdan bin Rashid, Deputy Ruler of Dubai and Minister of Finance, bought out minority shareholders in Dragon Oil at the end of 2015. Its main asset is the offshore Cheleken field in Turkmenistan that produces about 100,000 barrels of oil per day (bpd).
Mr Al Tayer said he and the Enoc board recently met the chairman of Turkmenistan’s national oil company, Turkmennebit, and senior Turkmenistan government officials to discuss opportunities to expand collaboration.
Enoc officials say the company is in the exploratory phase and not near any financing decision but that its mergers and acquisition team is looking initially in areas where the company already has interests, which as well as Turkmenistan includes North Africa – Egypt, Tunisia and Algeria – Iraq and Afghanistan.
Mr Al Tayer said that while the long-term aim is upstream expansion, the company’s main short-term focus remains on domestic growth. This includes a US$1 billion project to increase capacity at its Jebel Ali refinery by 50 per cent, with a new condensate processing train raising daily crude oil processing capacity to 210,000 bpd from a current 140,000 bpd, plus other new units.
It also includes a 50 per cent expansion of its retail chain to nearly 170 petrol outlets and a move into Saudi Arabia.
amcauley@thenational.ae
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