Adnoc in talks to acquire service stations in Dubai

Abu Dhabi-based Adnoc Distribution is in talks to take over an undefined number of service stations in Dubai, Emirates 24|7 can reveal.

"Adnoc Distribution is currently in various stages of negotiation with relevant authorities on acquiring an undefined number of service stations in the emirate of Dubai,” the company told this website in an emailed statement.

“Adnoc Distribution’s strategy is in line with its commitment to provide world-class services and products to customers and keep pace with the growing demand emerging out of the rapid economic developments in the UAE,” it added.

The statement did not mention any name, but market sources said the company was to take over Emirates General Petroleum Corporation (Emarat) service stations in Dubai and rebrand it to Adnoc from early 2015.

In September 2013, Adnoc Distribution signed an agreement with Emarat for the takeover of 75 service stations within 24 months of signing the agreement.

The agreement mandates Adnoc Distribution to acquire 75 service stations in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, as well as a fuel depot at Port Khalid in Sharjah.

These stations are geographically located as follows: 31 in Sharjah, 16 in Ras Al Khaimah, 12 in Fujairah, 10 in Ajman, and six stations in the emirate of Umm Al Quwain.

In August, Adnoc Distribution said it had completed acquisition of 34 Emarat service stations and a fuel depot at Port Khaled in Sharjah.

In June, figures released by Bloomberg revealed that a gallon of petrol costs $1.77 (Dh6.5) in the UAE, which is sixth most economical in the world.

In the UAE, petrol retail price for 95 octane is Dh1.72 per litre while for 98 octane it is Dh1.83. Petrol prices in the UAE are capped, except diesel prices across the country.

Read: Petrol prices in the UAE are among world’s lowest

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