Emirates National Oil Company Limited (ENOC) L.L.C. is a leading integrated global oil and gas company. Based in Dubai, the group serves thousands of customers across 60 different markets. As the demand for energy increases, the company will continue to supply these markets.
The ENOC group has an impressive business portfolio. The company provides a varied set of services, including oil trade, terminalling & storage, bunkering, liquefied petroleum gas, aviation fuel marketing, lubricants blending, marketing, informational technology and refining. The list has grown over the years, and there is still room for change, but ENOC have maintained their core principles across all of their services since 1993. Examining these principles is the first step towards understanding the nature of the business.
ENOC formed in the early nineties under the direction of the Government of Dubai. They had a vision to become a highly profitable and socially responsible gas company. To achieve this, they worked on the principle that employees, communities and the environment should be at the heart of their work, so they created initiatives that rewarded and incentivized responsible energy arrangements. The company made significant contributions to economic diversification and sustainable development in Dubai, and won several international awards for quality, environmental sustainability and service standards. Now, they are meeting their vision through a series of new projects and arrangements. ENOC’s latest work includes the first ‘Green Service Station’ in the Middle East region, a branded retail network and subsidiary work on compressed natural gases. These projects are particularly important given the increased demand for sustainable, natural green fuel. They support the ‘Green Economy for Sustainable Development’ (GESD) vision outlined by the governing bodies of the UAE. The GESD vision is about the UAE becoming one of the world leaders in renewable energy, as well as a centre for the export and re-export of green products and technologies. The GESD focuses on creating sustainable environments to support long-term economic growth: a vision held in common with ENOC.
With these standards in place, ENOC can respond to the UAE’s rising energy demand in their own careful way. The company’s CEO, His Excellency Saif Humaid Al Falasi said that the UAE’s energy demand is growing at about 9 per cent a year. He said that ENOC will continuously meet these needs, despite the sharp increase in the Emirate’s own energy consumption. The first step is to increase oil capacity with an upgrade to the energy processing systems. Fortunately, this step is already underway, since there is a new project at the EPCL processing facility. The main package of the project will add a new condensate processing train to the existing facility. This will upgrade ENOC’s daily oil capacity to 210,000 barrels per day, up from its existing figure of 140,000. Additional processing units will also be added to the site. The new units include new LPG/naphta hydrotreaters, an isomerisation unit, kerosene hydrotreater, and a diesel hydrotreater. The inclusion of the units ensures that the refinery’s fuel products, which includes gasoline, jet fuel and diesel, are capable of meeting expanding domestic fuel demand as well as export demands. The EPCL expansion has not affected the ISO 9001:2015/ ISO 17025:2005 certified laboratory, which is excellent news. For context, the laboratory is the only accredited organisation in the Middle East that is capable of carrying out critical tests for gasoline and jet fuel products. Since the testing process is so critical in ENOC’s business model, it was paramount that the laboratory was unaffected by the expansion. The new units will continue to take heed of the UAE’s drive for clean energy, so, the expanded EPCL facility will manufacture products for the local market under stringent Euro 5 standards.
It is clear that ENOC are changing their processes and processing facilities to maximise the production of their prized energy source- the oil. The oil is the major product ENOC’s current product range, which comprises of lubricants and industrial products, manufactured and distributed by two ENOC divisions; ENOC Lubricants Marketing and ENOC Industrial Products Marketing (EIPM).
ENOC Lubricants markets a diverse portfolio of lubricants and greases, which are designed for applications in many sectors. The main consumers of ENOC lubricants lie in the automotive, industrial, marine, heavy duty diesel engine and commercial sectors. The lubricants have a global presence, being sold, shipped and used in 60 countries across the Middle East, Africa, South East Asia, CIS and the Indian Subcontinent.
As well as lubricants, ENOC makes oil-based products (known as ‘fueling solutions’) for dispensing units. According to information on ENOC’s website, the products are tailor made, despite being created for a global market. The site says:
“ECIP provides tailor-made fueling solutions, investing in and building more than 200 commercial fuelling stations across the UAE and catering to special requirements such as differing types of tanks and dispensers as well as automation systems.”
“EBI supplies fuel to all kinds of marine vessels such as offshore supply boats, container liners, tankers, Navy and Coastguard ships, using a network of transport options including road tanker trucks and pipeline.”
The oil is a huge part of the business, but it does not cover everything: the company must also collaborate with suppliers in order to sell their oil and profit from their products. ENOC find their suppliers using a tender system. Once they have found suppliers and distributors, they work with them on a long-term basis. The company choose their suppliers based upon their ability to deliver on time. However, they also make arrangements with suppliers on account of the quality of their service or product. This means ENOC will take the conduct of their partners in to account when they consider working with them. The company uses a central supply chain system but subsidiaries and owned companies deal with their own supply chain. All arrangements made help ENOC to move and sell their oil. This benefits the company, and, it facilitates Dubai’s continued expansion of aviation, infrastructure and hospitality sectors: a win for everyone.
ENOC’s success with their unit expansions and their global sales cannot be talked about without mentioning the executive board. The board has driven the company towards its goals. According to the company website, ENOC said: “Our board is the highest-level authority within the group and our board members are our corporate stewards, overseeing all management aspects.”
“The board makes all major leadership decisions for ENOC, these include choosing management individuals, setting the strategic direction for the company, establishing policies, setting the ethical tone for the organisation and monitoring the outcomes. The board reviews and approves ENOC’s strategic planning, financial performance and reporting, organisational structure, risk management and oversees policies, control framework, and compliance.”
“All of the board’s activities are conducted for the express purpose of preserving and enhancing the underlying value of the company.”
Importantly, the board is made up of of many experienced business leaders, each with diverse skill-sets and competencies. The board has established three committees that report directly to them: the Audit Committee (AC), Investment and Tender Committee (ITC) and the Nomination and Remuneration Committee (NRC). Working together, this team helps shape the future of Dubai’s diversified, modern green economy.