Enoc quits Fujairah bunkering business
Singapore, July 8, 2010
Dubai-based Emirates National Oil Co (Enoc) has ceased bunkering operations at the Al Fujairah Port in the UAE in the face of rising competition from other ports in the region, less than two years after restarting the business.
'We have stopped operations since July 1,' Khalid Hadi, Enoc's group brand and marketing manager told Reuters on Thursday, without elaborating on the reasons.
Traders said the state oil company is estimated to have lost around $20 million from their bunkering operations in Fujairah and had been doing monthly volumes of about 200,000 tonnes prior to their exit.
The state oil company pulled out of Al Fujairah, the world's second-largest bunkering port after Singapore, as it was not as cost-competitive as its rivals, traders said.
'Enoc doesn't own its own barges, so it couldn't compete with players that do,' said a Dubai-based bunker trader.
Some players have been exiting or downsizing their operations in Fujairah because of competition from other ports in the region, he added.
Enoc had earlier stopped supplying bunker fuel in Fujairah in May 2008 after splitting with its joint-venture partner, Kuwait's Independent Petroleum Group (IPG), which maintained the logistics operations of the business, before restarting it eight months later in January 2009. – Reuters