Page 16 - DMEA Week 37

DMEA FUELS DMEA

Trafigura seeks position in

Somaliland fuel supply

SOMALILAND COMMODITIES giant Trafigura is looking to The trader plans to import jet fuel and LPG
establish a position in fuel supply in Somaliland. into Somaliland in the future to serve local and
Somaliland is looking to In a statement last week, the company said it regional customers. It will also upgrade the Ber-
transform Berbera into had delivered a first batch of low-sulphur gasoil bera oil terminal, improving and expanding its
a strategic hub. to the country’s Berbera oil terminal. The deliv- storage capacity. It also intends to increase the
ery was made as part of a storage deal signed port’s draft to enable larger vessels to be received.
with the Somaliland Ministry of Trade, Industry This will allow traders to import refined prod-
and Tourism. ucts more economically, and increase their
“The agreement gives Trafigura access to the access to re-export markets.
existing terminal for storage of refined petro- Somaliland’s government is looking to trans-
leum products in order to supply the local market form Berbera into a strategic hub, to handle
in a strategically important region,” Trafigura’s regional demand for fuels that is growing each
head of energy trading in Africa, James Josling, year.
said in a statement. “We are working alongside “We’re delighted to be working with a leading
the government to reduce sulphur limits in the independent, international company like Tra-
local fuel specifications, to give the opportunity figura to improve the quality and reliability of
for Somaliland to align product specifications refined petroleum product supply into the coun-
with regional market standards such as Ethiopia try,” Somaliland’s Minister of trade, Mohamoud
and Djibouti, which will promote cross-border Hassan Saad, said. “By working with Trafigura
trade while improving air quality in line with there will be interested transparency, high stand-
Trafigura’s wider ESG agenda and commitment ards, and increased competitiveness across the
to Africa.” supply chain.” ™

ADNOC sells 10% stake in fuel

distributor for $1bn

UAE STATE-OWNED Abu Dhabi National Oil strong balance sheet, holding AED2.4bn in cash
Company (ADNOC) has placed an additional and cash equivalents and AED2.8bn in unuti-
ADNOC Distribution is 10% equity stake in its retail fuel services arm lised revolving credit facilities. ADNOC Distri-
a leading fuel distributor Abu Dhabi National Oil Company for Distri- bution’s dividend policy is set to increase 7.5% in
in the UAE. bution (ADNOC Distribution) valued at $1bn 2020 to AED2.57bn following a 62% jump in its
to institutional clients. With this placement, the 2019 dividend to AED2.39bn.
company’s free float and liquidity on the Abu Citigroup Global Markets Limited and First
Dhabi Securities Exchange will increase to 20% Abu Dhabi Bank PJSC acted as joint bookrun-
of its total shares. ners on the transaction. Moelis & Company
The placement was priced at AED2.95 acted as an independent financial advisor to
($0.8) per share, which is 18% above the 2017 ADNOC. ™
IPO price of AED2.5 per share and represents
a 5% discount on the company’s three-month
volume-weighted average price. The company
remained silent on the identity of the institu-
tional buyers, sufficing to mention that there
was significant investor demand for ADNOC
Distribution stock.
ADNOC Distribution is a leading fuel dis-
tributor and convenience store operator in the
United Arab Emirates, operating 406 retail fuel
service stations in the UAE and two retail fuel
service stations in Saudi Arabia. It maintains a

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