Emirates National Oil Company (Enoc) has received a US$500 million, three-year credit facility from seven international and regional banks to help expand its local operations, the Dubai-based national energy company said on Wednesday.
"Over the next five years, the group will focus on expanding capacities to support domestic energy demand in alignment with Dubai Plan 2021 and in preparation for Expo 2020," said Saif Al Falasi, the Enoc chief executive.
This includes a 50 per cent capacity increase at the company’s Jebel Ali refinery to reach 210,000 barrels per day (bpd) from its current 140,000 bpd. The project, expected to be completed by the end of 2019, will cost more than US$1 billion.
The other project to benefit from this credit facility will be Project Falcon's 16-kilometre jet fuel pipeline extension to Al Maktoum International Airport. After completion, the pipeline will be able to meet 60 per cent of the jet fuel needs for Al Maktoum and Dubai International airports.
The revolving credit facility, which typically has a higher interest rate than standard loans, will be funded by Emirates NBD, ABN Amro, DBS Bank, Gulf International Bank, Citi, Standard Chartered and BBK. Although the loan terms were not disclosed, this type of facility allows Enoc to pay a commitment fee to use funds when needed.
Mr Al Falasi added: “Despite the challenging macroeconomic situation, we have achieved record sales reflecting a five-year rolling average growth of 11 per cent. Receiving a credit facility from leading lending institutions is an expression of confidence through our strong financial and business performance over the years.”
While Enoc’s five-year strategy looks to enhance its downstream and local market offerings, the long-term vision will flip into the upstream sector. Earlier this year, the hydrocarbon company created an exploration and production unit to help expand its overseas upstream assets.
