Costco joins fuel war in Australia Qatar Petroleum ... - ErpecNews
Costco joins fuel war in Australia Qatar Petroleum ... - ErpecNews
Costco joins fuel war in Australia Qatar Petroleum ... - ErpecNews
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an <strong>in</strong>ternational retail petroleum news digest<br />
<strong>Costco</strong> <strong>jo<strong>in</strong>s</strong> <strong>fuel</strong> <strong>war</strong> <strong>in</strong> <strong>Australia</strong><br />
International discount giant <strong>Costco</strong> is scour<strong>in</strong>g<br />
Melbourne for its first cut-price service station<br />
<strong>in</strong> read<strong>in</strong>ess for a <strong>fuel</strong> <strong>war</strong>. The US <strong>war</strong>ehouse<br />
cha<strong>in</strong> has identified sites <strong>in</strong> the southern and<br />
northern suburbs. It hopes to have its first <strong>fuel</strong><br />
pumps flow<strong>in</strong>g with<strong>in</strong> a few years. A new <strong>Costco</strong><br />
www.erpecnews.com<br />
retail outlet will be built alongside the service<br />
station. <strong>Costco</strong>’s entry <strong>in</strong> the <strong>fuel</strong> market will<br />
<strong>in</strong>tensify competition between the other two<br />
big players, Coles and Woolworths. <strong>Costco</strong> is<br />
await<strong>in</strong>g State Government approval, expected<br />
<strong>in</strong> February, to roll out its first petrol outlet<br />
north of Brisbane. <strong>Costco</strong> <strong>Australia</strong> Manag<strong>in</strong>g<br />
Director Patrick Noone said the <strong>Costco</strong> <strong>in</strong>itiative<br />
“will be competition, competition, competition.<br />
That’s the name of the game – we would like to<br />
have several stores <strong>in</strong> the Melbourne market”,<br />
he said. Putt<strong>in</strong>g pressure on the majors to do<br />
a better deal will <strong>in</strong>crease competition.<br />
<strong>Qatar</strong> <strong>Petroleum</strong> wants stake <strong>in</strong> Petronet LNG<br />
<strong>Qatar</strong> <strong>Petroleum</strong> has expressed <strong>in</strong>terest <strong>in</strong><br />
buy<strong>in</strong>g a 5.2 percent stake <strong>in</strong> Petronet LNG<br />
Ltd, a potentially conflict of <strong>in</strong>terest proposition<br />
as it will give the gas supplier a vantage<br />
position as India’s largest <strong>fuel</strong> importer.<br />
<strong>Qatar</strong> <strong>Petroleum</strong>, the Persian Gulf country’s<br />
state-run energy firm, has majority stakes <strong>in</strong><br />
RasGas and <strong>Qatar</strong>Gas that along with other<br />
liquefied natural gas (LNG) suppliers <strong>in</strong> the<br />
world compete to sell <strong>fuel</strong> to India. If <strong>Qatar</strong><br />
<strong>Petroleum</strong> (QP) picks up 5.2 percent stake as<br />
well as a board position <strong>in</strong> Petronet, it will give<br />
the company an undue advantage over other<br />
suppliers as it will be privy to price and other<br />
negotiations, sources <strong>in</strong> Petronet’s company<br />
said. This will possibly be the first <strong>in</strong>stance<br />
of a LNG supplier pick<strong>in</strong>g up a stake <strong>in</strong> an<br />
import<strong>in</strong>g firm.<br />
Zambia talk<strong>in</strong>g to Gunvor and Trafigura<br />
Zambia has opened talks with foreign firms<br />
Gunvor and Trafigura regard<strong>in</strong>g a two-year<br />
supply of oil and ref<strong>in</strong>ed <strong>fuel</strong> start<strong>in</strong>g this year,<br />
a senior government official has said. Energy<br />
secretary George Zulu said the gov ern ment<br />
was talk<strong>in</strong>g to Geneva-based Gunvor over the<br />
supply of 1.4-million tons of oil and Trafigura<br />
on the supply of diesel and petrol. Ten foreign<br />
companies, <strong>in</strong>clud<strong>in</strong>g Glencore Energy UK,<br />
tendered to supply <strong>fuel</strong> to Zambia which had<br />
<strong>in</strong>vited tenders after the expiry of a contract<br />
with Glencore.<br />
Issue No 23 | January/February 2013<br />
AsiA, Middle eAst & AfricA edition<br />
Petronas energy<br />
efficient stations<br />
To ma<strong>in</strong>ta<strong>in</strong> themselves as the local<br />
market leader <strong>in</strong> the oil and gas <strong>in</strong>dustry,<br />
Petronas Dagangan Berhad (PDB) has<br />
launched two new energy-efficient “tw<strong>in</strong><br />
<strong>fuel</strong> stations”. This new breed of station<br />
offer customers the convenience of a rest<br />
stop for their travell<strong>in</strong>g needs with different<br />
services and experiences. There<br />
are four energy-efficient characteristics<br />
which separate these two stations from<br />
the regular, specifically, hav<strong>in</strong>g solar<br />
photovoltaic panel, light-emitt<strong>in</strong>g diode<br />
(LED) lights, ra<strong>in</strong> water harvest<strong>in</strong>g and<br />
nitrogen tyre-<strong>in</strong>flator. The solar photovoltaic<br />
panel has the capacity to generate around<br />
200 KW of electricity per hour. This power<br />
source is equivalent to the energy needed<br />
to supply 90 households a year. With this<br />
<strong>in</strong>novative move, the stations can reduce<br />
greenhouse emissions by approximately<br />
138 tons of carbon dioxide annually. The<br />
two station’s light<strong>in</strong>g <strong>in</strong>stallation reduces<br />
electricity expenditure while provid<strong>in</strong>g<br />
better light<strong>in</strong>g illum<strong>in</strong>ation to the area.<br />
Also, the LED lights are regulated by an<br />
energy management system which controls<br />
and manages the air-condition<strong>in</strong>g<br />
temperature at the station to provide a<br />
comfortable environment for customers.<br />
As part of Petronas’ water conservation<br />
efforts, the ra<strong>in</strong> water harvest<strong>in</strong>g system<br />
was built to prevent water be<strong>in</strong>g wasted.<br />
Approximately 82 500 litres is recycled!<br />
erpecnews is published by McLean Communications Ltd. <strong>in</strong> conjunction with PetrolPlaza – www.erpecnews.com
2<br />
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totAL unveils its new visual identity<br />
Total Jordan has unveiled the new visual<br />
identity of its service-station network. ToTAL<br />
say that the ‘T-Air’ image is another sign of<br />
the cont<strong>in</strong>uous dynamism and <strong>in</strong>novation <strong>in</strong><br />
ToTAL Group. Total Jordan will gradually<br />
roll out the new design <strong>in</strong> 2013 and 2014 at<br />
all of its service stations as part of its aim to<br />
strengthen its network’s identity with a more<br />
latest news, events, jobs onl<strong>in</strong>e – www.PetrolPlaza.com<br />
contemporary image and more energy efficient<br />
<strong>in</strong>stallations. As of today, Total Jordan operates<br />
24 service stations employ<strong>in</strong>g about 500<br />
people. The recent a<strong>war</strong>d of an oil Market<strong>in</strong>g<br />
Company License will allow Total Jordan<br />
to cement its position <strong>in</strong> the country and<br />
significantly enlarge its presence to be more<br />
accessible to every Jordanian.<br />
tanzania – local tender for bulk <strong>fuel</strong><br />
For the first time s<strong>in</strong>ce the <strong>in</strong>troduction of the<br />
Bulk Procurement System (BPS) of purchas<strong>in</strong>g<br />
<strong>fuel</strong>, a local company has participated <strong>in</strong><br />
the tender<strong>in</strong>g process and emerged as the<br />
w<strong>in</strong>ner. Gapco Tanzania Ltd is the first local<br />
company to apply and w<strong>in</strong> the tender. It will<br />
supply 282 870 metric-tonnes of oil products<br />
for delivery <strong>in</strong> February this year. “We made<br />
the best offer with the support of our parent<br />
company, Reliance Industries”, Gapco’s<br />
Bus<strong>in</strong>ess Development Manager Natarajan<br />
Anand expla<strong>in</strong>ed. The Indian conglomerate<br />
company, Reliance Industries, acquired the<br />
petroleum market<strong>in</strong>g operations of Gapco <strong>in</strong><br />
2007. Gapco also offered the most competitive<br />
weighted average DAP Premier per Metrictonnes<br />
which is worth $ 52.55.<br />
esso plans 100 stations <strong>in</strong> three years<br />
Esso Thailand has outl<strong>in</strong>ed plans to grow its<br />
<strong>fuel</strong> retail network by 100 <strong>fuel</strong> service stations<br />
with<strong>in</strong> the next three years. The company plans<br />
to have a network of 570 sites operational by<br />
2015. Esso Thailand’s Director and Retail<br />
Sales Manager Yodpong Sutatham noted that<br />
the company had renovated 200 of its <strong>fuel</strong><br />
service stations over the past two years with<br />
another 100 to be renovated <strong>in</strong> 2013. Esso<br />
has allocated an <strong>in</strong>vestment budget of 1 billion<br />
baht for bus<strong>in</strong>ess expansion this year, up<br />
from about 600 million baht spent <strong>in</strong> 2012.<br />
Ptt offer e20 gasohol at 1 000 stations<br />
PTT will expand to 1 000 the number of <strong>fuel</strong><br />
stations pump<strong>in</strong>g E20 gasohol, from 600 currently,<br />
after the removal of 91-octane petrol<br />
from the market this year. The company’s E20<br />
gasohol campaign that started <strong>in</strong> August last<br />
year had doubled the sales of this <strong>fuel</strong>, which<br />
is 20 percent ethanol, to 24 million litres<br />
per day. Dur<strong>in</strong>g this year PTT wil convert<br />
its 91-octane pumps to distribute 95-octane<br />
petrol and E20 gasohol, with more focus on<br />
the latter. The company plans to pump E20<br />
at 400 more stations than the current level,<br />
for a total of 1 000 stations nationwide. It<br />
has also drawn up a comprehensive plan to<br />
promote E85 gasohol.<br />
Pertam<strong>in</strong>a plans downstream <strong>in</strong>vestment<br />
Indonesian state oil firm Pertam<strong>in</strong>a plans<br />
to <strong>in</strong>vest $ 6.77 billion <strong>in</strong> its upstream and<br />
downstream arms as it seeks to boost production<br />
and strengthen the country’s energy<br />
<strong>in</strong>frastructure. The <strong>in</strong>vestment has been<br />
confirmed <strong>in</strong> the company’s 2013 budget and<br />
work plan follow<strong>in</strong>g a meet<strong>in</strong>g of the general<br />
shareholders. “our <strong>in</strong>vestment strategy this<br />
year will be focused on major projects that will<br />
smooth the progress of Pertam<strong>in</strong>a to becom<strong>in</strong>g<br />
a world-class energy company”, remarked Karen<br />
News – MIDDLe eAst, AFrICA & AsIA<br />
Agustiawan, Pertam<strong>in</strong>a’s President Director.<br />
46 percent of the <strong>in</strong>vestment, $ 3.1 billion,<br />
has been allocated to the upstream bus<strong>in</strong>ess,<br />
where the company plans to <strong>in</strong>crease crude<br />
output to 244 000 barrel per day. Pertam<strong>in</strong>a<br />
will <strong>in</strong>vest $ 638 million and $ 546 million <strong>in</strong><br />
its ref<strong>in</strong><strong>in</strong>g and market<strong>in</strong>g bus<strong>in</strong>ess respectively.<br />
Lubricant sales have been targeted as a key<br />
source of growth: the company plans to sell<br />
680 000 kilolitres of lubricant products this<br />
year, up from 617 000 kilolitres <strong>in</strong> 2012.<br />
3
News – MIDDLe eAst, AFrICA & AsIA<br />
4<br />
Indian ref<strong>in</strong>ers contribute<br />
to growth – IeA<br />
India’s ref<strong>in</strong>ers were some of the biggest<br />
contributors to global ref<strong>in</strong><strong>in</strong>g growth dur<strong>in</strong>g<br />
2012, accord<strong>in</strong>g to the International<br />
Energy Agency (IEA). In its latest figures,<br />
the energy watchdog reported that India<br />
4.5 million barrel per day of crude oil <strong>in</strong><br />
october, 680 000 barrel per day higher<br />
than a year earlier. In the year to october<br />
2012, crude runs are up 260 000 barrel per<br />
day on 2011, account<strong>in</strong>g for almost half<br />
of global crude throughput growth <strong>in</strong> the<br />
same period. In 2013, another 400 000<br />
barrel per day of capacity could be added<br />
if Indian oil Corporation’s 300 000 barrel<br />
per day Paradip and Nagarjuna’s 120 000<br />
barrel per day Cuddalore ref<strong>in</strong>eries are<br />
completed on schedule. However, the IEA<br />
noted that further <strong>in</strong>vestments planned for<br />
the medium term are gett<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly<br />
hard to justify, as India’s state ref<strong>in</strong>ers<br />
have to supply the domestic market at<br />
subsidised prices.<br />
bPC Corporation<br />
f<strong>in</strong>alises contracts<br />
Bangladesh <strong>Petroleum</strong> Corporation (BPC)<br />
said that it f<strong>in</strong>alised contracts with eight<br />
foreign companies to import oil products<br />
for the first half of this calendar year<br />
at mostly higher premiums than <strong>in</strong> the<br />
current contracts. BPC is the country’s<br />
only oil importer and distributor. The<br />
government ‘generously’ subsidises the<br />
BPC that sells <strong>fuel</strong>-oil to the local market<br />
at lower prices than the import rates. The<br />
total subsidy for the year to June 2012<br />
was Taka 460 billion ($ 6 billion), which<br />
is above double the orig<strong>in</strong>al estimate of<br />
Taka 200 billion and up from Taka 195<br />
billion <strong>in</strong> 2011.<br />
Fuel subsidy bill<br />
ris<strong>in</strong>g <strong>in</strong> <strong>in</strong> egypt<br />
Egyptian General <strong>Petroleum</strong> (EGPC)<br />
Chairman Hani Dahi <strong>war</strong>ned that costs<br />
of <strong>fuel</strong> subsidies is grow<strong>in</strong>g and may reach<br />
30.9 billion Egyptian pounds ($ 4.79 billion)<br />
for the first quarter of the calendar<br />
year. Dahi said that Egypt have spent<br />
30 billion pounds each quarter subsidis<strong>in</strong>g<br />
<strong>fuel</strong> s<strong>in</strong>ce the current fiscal year began<br />
1st July. 20 percent of the country’s public<br />
expenditure is absorbed by <strong>fuel</strong> subsidy.<br />
“Spend<strong>in</strong>g on <strong>fuel</strong> subsidies <strong>in</strong> the third<br />
quarter will rise between 2 percent to<br />
3 percent”, said Dahi. Egypt is currently<br />
work<strong>in</strong>g to f<strong>in</strong>alise an IMF loan for $ 4.8 billion,<br />
while EGPC owes foreign partners<br />
a total of $ 4.5 billion.<br />
Unioil to expand retail network<br />
Small <strong>fuel</strong> company Unioil Philipp<strong>in</strong>es <strong>Petroleum</strong><br />
Inc. is look<strong>in</strong>g at <strong>in</strong>vest<strong>in</strong>g a m<strong>in</strong>imum<br />
of 200 million Phillip<strong>in</strong>e pesos as it plans to<br />
further expand its retail network. Unioil say<br />
they plan to put up 10 to 12 service stations<br />
this year and between 10–12 stations annually<br />
over the next three years. They expect a 15<br />
percent growth <strong>in</strong> sales volume <strong>in</strong> 2013 driven<br />
by their planned expansion. The company is<br />
LAtest News, eveNts, Jobs oNLINe – www.PetroLPLAzA.CoM<br />
focused only on build<strong>in</strong>g company-owned<br />
stations however they are not clos<strong>in</strong>g their<br />
doors to dealer-owned stations. Recently<br />
Unioil launched its “Go Green Future Campaign”,<br />
which promotes Euro Diesel IV <strong>fuel</strong><br />
available <strong>in</strong> all of its service stations. They<br />
are sourc<strong>in</strong>g Euro Diesel IV stocks from<br />
S<strong>in</strong>gapore and is more than two years ahead<br />
of the 2016 mandate.<br />
engen – largest <strong>fuel</strong> supplier <strong>in</strong> Kenya<br />
In what is expected to dim<strong>in</strong>ish the practice<br />
of oil price fix<strong>in</strong>g <strong>in</strong> Kenya, Engen, has signed<br />
a strategic partnership with the Kenya Inde -<br />
pen dent <strong>Petroleum</strong> Dealers Association<br />
(KIPEDA). Under the deal, Engen is expected<br />
to supply (as the sole supplier of the group)<br />
<strong>fuel</strong>, lubricants and technical support on <strong>fuel</strong><br />
station operation, to <strong>in</strong>dependent dealers that<br />
have no l<strong>in</strong>ks to mult<strong>in</strong>ational oil majors.<br />
KIPEDA went <strong>in</strong>to strategic partnership with<br />
Engen, which the group felt could help it<br />
leverage the strength of its members to their<br />
collective benefit. Independent <strong>in</strong>digenous<br />
Kenyan dealers operate more than 500 sites<br />
currently – mak<strong>in</strong>g up half of the Kenyan<br />
retail <strong>fuel</strong> sector. The deal with Engen is<br />
expected to overcome erratic <strong>fuel</strong> and lubricants<br />
supply, uneconomic price marg<strong>in</strong>s and<br />
lack of access to quality products.<br />
Nigeria to build 30 new <strong>fuel</strong> stations<br />
The Nigerian National <strong>Petroleum</strong> Corpora -<br />
tion (NNPC) plans to build new petrol stations<br />
for about 4 billion naira this year even<br />
as it said that the Federal Government lost<br />
241.93 billion naira to crude theft between<br />
2006 and last year. The highest 98.03 billion<br />
naira theft was recorded <strong>in</strong> 2011. The nation<br />
lost another 105 billion nairas to pipel<strong>in</strong>e<br />
vandalisation <strong>in</strong> Niger Delta. These figures<br />
were conta<strong>in</strong>ed <strong>in</strong> the NNPC’s 2012 budget<br />
performance and its proposed 2013 budget<br />
which it submitted to the National Assembly<br />
Jo<strong>in</strong>t Committees on <strong>Petroleum</strong> Resources<br />
(Upstream/Downstream/Gas).<br />
Ch<strong>in</strong>ese firm to build $ 7.5 billion ref<strong>in</strong>ery<br />
S<strong>in</strong>o Arab Energy (SAE), a Ch<strong>in</strong>ese firm,<br />
has concluded plans to build a ref<strong>in</strong>ery at<br />
Akabuyo, <strong>in</strong> the Local Government Area of<br />
Cross River State, Nigeria <strong>in</strong> partnership with<br />
a local firm, osabo Ref<strong>in</strong><strong>in</strong>g and Petrochemical<br />
Industry Limited. The ref<strong>in</strong>ery, which is<br />
expected to process 107 000 barrel per day of<br />
crude, has been valued at $ 7.5 billion. Hon<br />
Etim Effiong okon, a member of osabo’s<br />
management team, said that the process<br />
for the procurement of requisite licenses<br />
to establish and operate the ref<strong>in</strong>ery had<br />
commenced. He promised that Akwa Esuk<br />
Eyamba, the community where the ref<strong>in</strong>ery<br />
will be located, had donated 500 hectares<br />
of land for the facility. The ref<strong>in</strong>ery is set for<br />
completion with<strong>in</strong> five years, with construction<br />
beg<strong>in</strong>n<strong>in</strong>g <strong>in</strong> 2014.<br />
Israel backs alternative <strong>fuel</strong>s to petroleum<br />
Israel’s Government has backed the development<br />
of compressed natural gas, methanol<br />
mixes and other <strong>fuel</strong> alternatives, not<strong>in</strong>g that<br />
non-petroleum <strong>fuel</strong>s will reduce the country’s<br />
dependence on oil. 2013 to 2025 will become<br />
a transition period for Israel’s transportation<br />
sector to non-petroleum alternative energy<br />
sources. A team led by National Economic<br />
Council Chairman Professor Eugene Kandel<br />
was formed <strong>in</strong> 2010 to formulate national policy<br />
on reduc<strong>in</strong>g petroleum dependence and calls for<br />
1.5 billion shekel state <strong>in</strong>vestment <strong>in</strong> alternative<br />
<strong>fuel</strong>s over the next decade. The plan is to<br />
reduce the weight of petroleum as an energy<br />
source for transportation by 30 percent <strong>in</strong> 2020<br />
and 60 percent <strong>in</strong> 2025. The proposal also<br />
mandates that the government must establish<br />
a comprehensive action plan for alternative <strong>fuel</strong><br />
<strong>in</strong>tegration, while simplify<strong>in</strong>g bureaucratic and<br />
regulatory processes that will promote technological<br />
developments as well as <strong>in</strong>frastructure<br />
growth for alternative transportation.
latest news, events, jobs onl<strong>in</strong>e – www.PetrolPlaza.com<br />
5
6<br />
News – MIDDLe eAst, AFrICA & AsIA<br />
engen goes ‘Green’<br />
<strong>in</strong> sub saharan Africa<br />
Engen has completed its green<strong>in</strong>g pilot at<br />
three African retail service sites, mak<strong>in</strong>g<br />
multiple energy- and water-sav<strong>in</strong>g alterations.<br />
It now believes it has identified the<br />
most effective and efficient susta<strong>in</strong>ability<br />
<strong>in</strong>terventions for its purposes, ones that can<br />
decrease its carbon footpr<strong>in</strong>t and operat<strong>in</strong>g<br />
costs when rolled out more broadly. In<br />
subsequent projects, the group will focus<br />
on green<strong>in</strong>g more of its retail sites <strong>in</strong> its 19<br />
territories across sub-Saharan Africa and the<br />
Indian ocean Islands and, after that, turn<br />
to its depots and offices across the group.<br />
Petronas completes<br />
acquisitions<br />
Petronas Dagangan Bhd (PDB) has announced<br />
the completion of its acquisition<br />
of Petronas Vietnam Co Ltd (PVL) and<br />
Thang Long LPG Co Ltd (TLLCL) <strong>in</strong><br />
Vietnam <strong>in</strong> accordance with the terms of<br />
the share sale and purchase agreements<br />
dated 1st June 2012. In a statement from<br />
Kuala Lumpur <strong>in</strong> Malaysia, Petronas noted<br />
that both PVL and TLLCL will be held<br />
by PDB follow<strong>in</strong>g the completion of the<br />
acquisition, via its newly <strong>in</strong>corporated and<br />
wholly-owned <strong>in</strong>vestment hold<strong>in</strong>g company,<br />
PDB (Netherlands) BV. “Follow<strong>in</strong>g this,<br />
PDB has completed the acquisition of all<br />
the six downstream companies <strong>in</strong> South<br />
East Asia”, said the Statement. As part of<br />
the company’s expansion strategy <strong>in</strong> South<br />
East Asia, PDB will undertake targeted<br />
<strong>in</strong>vestments to propel future growth for<br />
these newly acquired companies.<br />
Puma energy buys<br />
major <strong>in</strong>dependent<br />
In <strong>Australia</strong> Puma Energy plans to w<strong>in</strong><br />
local market share after buy<strong>in</strong>g up over<br />
120 <strong>fuel</strong> service stations hav<strong>in</strong>g bought<br />
Neumann <strong>Petroleum</strong>.<br />
Nepal allows private firms to import<br />
Nepal’s government is consider<strong>in</strong>g allow<strong>in</strong>g<br />
private companies to import crude oil<br />
products which would resolve chronic <strong>fuel</strong><br />
shortages and end the state’s monopoly on a<br />
trade worth about $ 1 billion a year, a trade<br />
m<strong>in</strong>istry official has said. Nepal buys all its<br />
<strong>fuel</strong> from abroad and state-run Nepal oil<br />
Corporation (NoC) is currently the sole<br />
importer of the 21 000 barrels per day of<br />
crude oil products the country needs. NoC,<br />
however, is plagued by <strong>in</strong>sufficient storage<br />
capacity, a poor transport network and difficulties<br />
<strong>in</strong> pay<strong>in</strong>g its sole supplier, Indian<br />
oil Corp, creat<strong>in</strong>g frequent <strong>fuel</strong> shortages<br />
and long queues at <strong>fuel</strong> stations. “We want<br />
to open up the <strong>fuel</strong> bus<strong>in</strong>ess to the private<br />
sector. Private firms will be able to import,<br />
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store and distribute <strong>fuel</strong>, oil and lubricants<br />
just like the NoC does”, said Lal Mani Joshi,<br />
the most Senior Bureaucrat at the M<strong>in</strong>istry<br />
of Commerce and Supplies and chairman of<br />
NoC’s board. A proposal to allow imports<br />
by the private sector has been submitted to<br />
the cab<strong>in</strong>et, Joshi said, add<strong>in</strong>g that it was not<br />
immediately clear when it would be approved.<br />
Nigeria imports <strong>fuel</strong> from the Niger<br />
The operations Controller at the Department<br />
of <strong>Petroleum</strong> Resources (DPR), Alhaji Syyadi<br />
Suleiman Abubakar, has said that Nigeria<br />
now imports diesel and petrol from Niger<br />
Republic, as his department closed 10 fill<strong>in</strong>g<br />
stations over an allegation of sell<strong>in</strong>g the product<br />
above the official retail price. Abubakar<br />
is look<strong>in</strong>g to ensure that long queues at <strong>fuel</strong><br />
stations disappear. Accord<strong>in</strong>g to him, the<br />
government has no f<strong>in</strong>ancial commitment<br />
on importation of diesel and gas from Niger<br />
Republic as the two products had already<br />
been deregulated. He also confirmed that<br />
about 80 percent of <strong>fuel</strong> stations were not<br />
gett<strong>in</strong>g petroleum products from the depot,<br />
due to scarcity.<br />
Conoil adds 60 <strong>fuel</strong> stations this year<br />
oil marketer, Conoil Plc, will <strong>in</strong> 2013 establish<br />
60 new retail outlets spread across Nigeria as<br />
part of its major strategic expansion programme.<br />
The expansion programme will<br />
foresee a 4.8 bil lion naira <strong>in</strong>vestment and<br />
it is aimed at grow<strong>in</strong>g the company’s sales<br />
and revenue by over 65 percent, accord<strong>in</strong>g<br />
to a statement. It is projected that the new<br />
stations will complement the company’s<br />
plan for massive importation of ref<strong>in</strong>ed<br />
petroleum products this year. The retail<br />
outlets, Conoil added, would offer robust<br />
and automated network, which would leverage<br />
on technology to deliver the assurance<br />
of quality products and improve service<br />
efficiency at the forecourts. The expansion<br />
project represents the second phase of the<br />
company’s comprehensive four-year plan<br />
which started two years ago.
eNI expand<strong>in</strong>g <strong>in</strong>to vietnam<br />
Italian energy company ENI announced it<br />
signed a memorandum of understand<strong>in</strong>g<br />
to explore potential bus<strong>in</strong>ess opportunities<br />
with state owned PetroVietnam. ENI<br />
Chief Executive officer Paolo Scaroni met<br />
with PetroVietnam President Do Van Hau<br />
<strong>in</strong> Rome for the sign<strong>in</strong>g of the MoU. The<br />
MoU gives PetroVietnam the chance to<br />
MFG adds 10 stations to network<br />
Top 50 Indies forecourt operator, Motor<br />
Fuel Group (MFG) has grown its network<br />
to 58 stations with the acquisition of 10<br />
stations from Shell. Jeremy Clarke, MFG’s<br />
Manag<strong>in</strong>g Director said: “This acquisition<br />
adds some high volume stations to our<br />
network. They all fit <strong>in</strong>to our model by<br />
offer<strong>in</strong>g customers a great forecourt and<br />
shop offer.” He cont<strong>in</strong>ued: “All of these<br />
expand its <strong>in</strong>ternational footpr<strong>in</strong>t while<br />
allow<strong>in</strong>g ENI to enter <strong>in</strong>to developments<br />
<strong>in</strong> Vietnam. The CIA World Fact Book<br />
estimates that Vietnam <strong>in</strong> 2011 produced<br />
318 000 barrels of oil and 300 billion cubic<br />
feet of gas per day. Scaroni added that the<br />
Vietnam company would ga<strong>in</strong> from tra<strong>in</strong><strong>in</strong>g<br />
opportunities from his company.<br />
new stations are now BP branded and<br />
after a shop refit they will be offer<strong>in</strong>g the<br />
extensive and competitive range of Costcutter<br />
products. “It’s good to end our first<br />
year of trad<strong>in</strong>g with some positive news.<br />
We will cont<strong>in</strong>ue to look at opportunities<br />
for growth dur<strong>in</strong>g 2013 while ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g<br />
our on-go<strong>in</strong>g <strong>in</strong>vestment on our forecourts<br />
and <strong>in</strong> our shops.”<br />
NIs opens <strong>in</strong> balkans under GAzProM Neft<br />
NIS (Naftna Industrija Srbije), a subsidiary<br />
of Gazprom Neft, opened its first <strong>fuel</strong><br />
station under the GAZPRoM brand <strong>in</strong><br />
Belgrade. A large-scale project to launch a<br />
new premium retail cha<strong>in</strong> of GAZPRoM<br />
<strong>fuel</strong> stations will <strong>in</strong> the future be extended<br />
to other countries <strong>in</strong> the Balkans. The<br />
retail development under the new brand is<br />
planned <strong>in</strong> Serbia, Bulgaria, Romania and<br />
Bosnia and Herzegov<strong>in</strong>a with the stations <strong>in</strong><br />
Bulgaria and Romania open<strong>in</strong>g shortly. By<br />
the end of 2013, the GAZPRoM network<br />
turkey – an expensive <strong>fuel</strong> hotspot<br />
Turkey is one of the world’s most expensive<br />
<strong>fuel</strong> hotspots despite the reductions <strong>in</strong> tax,<br />
F<strong>in</strong>ance M<strong>in</strong>ister Mehmet Şimşek has<br />
said. The high prices are determ<strong>in</strong>ed by<br />
free market conditions as direct or <strong>in</strong>direct<br />
state <strong>in</strong>tervention has been capped off. He<br />
said the state’s regulations like formation<br />
of ref<strong>in</strong>ery prices with an <strong>in</strong>dex, or sett<strong>in</strong>g<br />
will consist of approximately 100 <strong>fuel</strong> stations.<br />
NIS will manage GAZPRoM petrol<br />
stations <strong>in</strong> the Balkans.<br />
an upper limit for the shares of distributors<br />
and carriers, have been elim<strong>in</strong>ated <strong>in</strong><br />
addition to decreases <strong>in</strong> taxes. “Although<br />
<strong>fuel</strong> prices have <strong>in</strong>creased for years, the tax<br />
burden hasn’t, on the contrary it decreased<br />
for the last 10 years.” Most recently, the<br />
F<strong>in</strong>ance M<strong>in</strong>istry raised taxes on <strong>fuel</strong> oil,<br />
diesel <strong>fuel</strong> and LPG.<br />
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News – eUroPe<br />
repsol compla<strong>in</strong>t upheld<br />
by world bank<br />
The World Bank’s arbitration body has<br />
begun <strong>in</strong>vestigations after accept<strong>in</strong>g a compla<strong>in</strong>t<br />
from Repsol regard<strong>in</strong>g Argent<strong>in</strong>a’s<br />
expropriation of its controll<strong>in</strong>g stake <strong>in</strong><br />
energy company YPF. Repsol’s compla<strong>in</strong>t<br />
– which follows the seizure of the company<br />
<strong>in</strong> May – could be one of the largest claims<br />
aga<strong>in</strong>st the country. Repsol has valued its<br />
51 percent stake <strong>in</strong> YPF at $ 10 billion.<br />
However, Argent<strong>in</strong>e officials have <strong>in</strong>dicated<br />
that they are not prepared to pay this, while<br />
the country’s Plann<strong>in</strong>g M<strong>in</strong>istry has formed<br />
a committee to determ<strong>in</strong>e the value for<br />
compensation purposes. Repsol and the<br />
Argent<strong>in</strong>e Government must each name an<br />
arbitrator to sit on a three-member panel<br />
that will oversee the case. The third member<br />
of the panel must be agreed by both sides.<br />
spa<strong>in</strong> and Ireland<br />
sign agreement<br />
Spa<strong>in</strong> and Ireland have both signed an<br />
agreement to ma<strong>in</strong>ta<strong>in</strong> oil reserves for<br />
‘petroleum emergencies’. Both countries<br />
have decided to jo<strong>in</strong> a European standard<br />
which states that countries must ma<strong>in</strong>ta<strong>in</strong><br />
m<strong>in</strong>imum reserves of crude. It also<br />
states how to handle such reserves and<br />
that periodic reports must be submitted<br />
to the European Commission on those<br />
levels. Both countries are also obliged to<br />
punish any company that do not comply<br />
with their obligations provided for <strong>in</strong> the<br />
legal framework. This agreement facilitates<br />
the free movement and treatment of oil<br />
between the two countries.<br />
HKs & bP agree new<br />
supply deal<br />
UK Independent retailer HKS has agreed<br />
to extend its long partnership with BP,<br />
sign<strong>in</strong>g a new supply deal with the oil<br />
major. The new deal will run for five years.<br />
7
News – MIDDLe eAst, AFrICA & AsIA<br />
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LUKoIL to expand network <strong>in</strong> turkey<br />
oAo LUKoIL of Russia is <strong>in</strong> exclusive talks<br />
with Full, a Turkish discount <strong>fuel</strong> retailer, to<br />
operate its <strong>fuel</strong> stations for 10 years, accord<strong>in</strong>g<br />
to Full CEo Timuc<strong>in</strong> Tali. Tali has said<br />
that currently Full’s stations are closed for<br />
LUKoIL <strong>in</strong>spections. Global energy compa-<br />
nies are seek<strong>in</strong>g expansion <strong>in</strong> Turkey where<br />
economic growth is forecast at 3.5 percent<br />
this year and about twice the pace of the most<br />
advanced economies to 2017. LUKoIL operates<br />
<strong>in</strong> the country through its Eurasia Petrol<br />
unit, which has more than 600 <strong>fuel</strong> stations<br />
across the country. The nation is <strong>in</strong>creas<strong>in</strong>gly<br />
becom<strong>in</strong>g an “energy hub” connect<strong>in</strong>g Europe<br />
with Asia, accord<strong>in</strong>g to the company’s website.<br />
LUKoIL is discuss<strong>in</strong>g f<strong>in</strong>ancial details of the<br />
deal with Full, which is owned by AR Sirketler<br />
Grubu’s Arista Hold<strong>in</strong>g. Under the agreement,<br />
LUKoIL Eurasia Petrol would rebrand Full’s<br />
54 stations under its own name.<br />
PKN orLeN and statoil sign agreement<br />
Polski Koncern Naftowy oRLEN S.A. have<br />
announced that the Management Board<br />
of AB oRLEN Lietuva signed a one-year<br />
agreement with Statoil Fuel & Retail Lietuva,<br />
UAB. The agreement was signed for the sale<br />
of gasol<strong>in</strong>e and diesel by oRLEN Lietuva to<br />
Statoil Fuel & Retail Lietuva for the period<br />
between 1st January 2013 and 31st December<br />
2013. The estimated net value of the agreement<br />
amounts to US $ 330 million. Agreements<br />
signed between PKN oRLEN and PKN<br />
oRLEN subsidiaries and companies from the<br />
Statoil Fuel & Retail group from February 2012<br />
to January 2013 amounted to approximately<br />
US $ 792 million. PKN oRLEN owns 100<br />
percent shares of oRLEN Lietuva.<br />
Trafigura supply<strong>in</strong>g <strong>fuel</strong> to Enemalta<br />
The <strong>fuel</strong> contract was a<strong>war</strong>ded to Trafigura <strong>in</strong><br />
December 2012 for the provision of between<br />
160 000 metric tonnes to 176 000 metric<br />
tonnes divided <strong>in</strong>to eight partial shipments<br />
with a contract period from the fourth week<br />
of January to the fourth week of June 2013.<br />
Trafigura provided not only the cheapest offer<br />
but fulfilled the criteria requested by the<br />
<strong>in</strong>vitation to tender relat<strong>in</strong>g to quality and<br />
quantity of the product, delivery periods, and<br />
other requirements such as <strong>in</strong>surance cover,<br />
jurisdiction of contract, and payment terms.<br />
repsol and Fiat jo<strong>in</strong> forces <strong>in</strong> LPG venture<br />
Fiat and Repsol have agreed to promote the sale<br />
of vehicles <strong>fuel</strong>ed with autogas (LPG automotive)<br />
and encourage the use of this alternative<br />
<strong>fuel</strong> <strong>in</strong> Spa<strong>in</strong>. Repsol leads Autogas distribution<br />
<strong>in</strong> the domestic market while the Italian brand<br />
offers the widest range of vehicles powered by<br />
LPG, a segment <strong>in</strong> which ranks first <strong>in</strong> sales <strong>in</strong><br />
Europe. The agreement was signed by the CEo<br />
of Fiat Group <strong>in</strong> Spa<strong>in</strong>,Luca Napolitano and<br />
the CEo of Repsol LPG, José Manuel Gallego.<br />
shell takes over Neste network <strong>in</strong> Poland<br />
Anglo-Dutch <strong>fuel</strong> giant Shell signed an<br />
agreement with Neste oil for the purchase<br />
of Neste’s <strong>fuel</strong> stations <strong>in</strong> Poland for EUR<br />
80 million, Neste oil has said at its website.<br />
The transaction is to be f<strong>in</strong>alized <strong>in</strong> the first<br />
half of 2013. Neste has 105 fill<strong>in</strong>g stations <strong>in</strong><br />
Poland & Neste Polska generated 250 million<br />
euros sales <strong>in</strong> 2011. Fuel groups PKN orlen<br />
and Lotos were also <strong>in</strong>terested <strong>in</strong> purchas<strong>in</strong>g Neste’s Polish <strong>fuel</strong> cha<strong>in</strong>.<br />
oMv sells market<strong>in</strong>g subsidiary <strong>in</strong> Croatia<br />
oMV Hrvatska is a 100 percent-owned<br />
subsidi ary of oMV Ref<strong>in</strong><strong>in</strong>g & Market<strong>in</strong>g<br />
GmbH em -ploy <strong>in</strong>g 63 staff members at its<br />
head office <strong>in</strong> Zagreb, has 62 fill<strong>in</strong>g stations<br />
and a market share of around 13 percent <strong>in</strong><br />
Croatia. Follow<strong>in</strong>g the completion of this<br />
transaction, which is subject to approval<br />
by competition authorities, oMV will have<br />
no further ref<strong>in</strong><strong>in</strong>g and market<strong>in</strong>g activities<br />
<strong>in</strong> Croatia.<br />
latest news, events, jobs onl<strong>in</strong>e – www.PetrolPlaza.com<br />
News – eUroPe<br />
9
News – eUroPe<br />
10<br />
bP says oil will rema<strong>in</strong> k<strong>in</strong>g to 2030<br />
British oil giant BP expects unconventional<br />
sources of crude and other <strong>fuel</strong>s to supply a<br />
larger amount of the world’s energy needs<br />
over the next 20 years and oil will rema<strong>in</strong><br />
the primary <strong>fuel</strong> for transportation. As far as<br />
overall energy consumption, BP believes oil<br />
will decl<strong>in</strong>e over the next two decades, while<br />
gas and coal will rise. The company made the<br />
predictions as it released its updated 2030<br />
energy outlook. It is the third year <strong>in</strong> which<br />
the company has released the expectations<br />
publicly. “This outlook is a projection, not a<br />
proposition”, Chief Executive Bob Dudley<br />
declared dur<strong>in</strong>g a presentation from London<br />
that was carried over the Internet. BP, Royal<br />
Dutch Shell and Exxon Mobil are among the<br />
companies that each year publish outlooks<br />
that forecast the future of the energy sector.<br />
The goal: To figure out what the world will<br />
look like <strong>in</strong> the future so they can make the<br />
most profitable exploration and production<br />
decisions today. By releas<strong>in</strong>g their conclusions<br />
publicly, these companies also spark<br />
an annual conversation about the world’s<br />
energy needs.<br />
BP’s updated projections <strong>in</strong>clude: Energy<br />
demand is expected to be 36 percent higher<br />
<strong>in</strong> 2030 than 2011, with almost all the<br />
growth com<strong>in</strong>g from emerg<strong>in</strong>g economies.<br />
Grow<strong>in</strong>g production from unconventional<br />
sources of oil – tight oil, oil sands and<br />
bio<strong>fuel</strong>s – is expected to provide all of the<br />
net growth <strong>in</strong> global oil supply to 2020<br />
and over 70 percent of growth to 2030. By<br />
2030, <strong>in</strong>creas<strong>in</strong>g production and moderat-<br />
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<strong>in</strong>g demand will result <strong>in</strong> the U.S. be<strong>in</strong>g<br />
99 percent self-sufficient <strong>in</strong> net energy; <strong>in</strong><br />
2005 it was only 70 percent. The U.S. will<br />
rema<strong>in</strong> a small net importer of oil, although<br />
net imports will decl<strong>in</strong>e by about 70 percent.<br />
Major emerg<strong>in</strong>g economies such as Ch<strong>in</strong>a<br />
and India will become <strong>in</strong>creas<strong>in</strong>gly reliant<br />
on energy imports. These shifts will have<br />
major impacts on trade balances. Russia will<br />
rema<strong>in</strong> the world’s largest energy exporter,<br />
with <strong>in</strong>creases <strong>in</strong> exports of all fossil <strong>fuel</strong>s.<br />
By 2030, Saudi Arabia will be the world’s<br />
largest oil exporter, although the trajectory<br />
over time will be impacted by the likelihood<br />
of oPEC production cuts. “Fears of oil<br />
runn<strong>in</strong>g out, to which we never subscribed,<br />
appear <strong>in</strong>creas<strong>in</strong>gly groundless”, Dudley<br />
said. At London-based BP, a 10-member<br />
team works year round on the company’s<br />
energy projections, which <strong>in</strong>clude assumptions<br />
on changes <strong>in</strong> policy, technology and<br />
the economy. Internal and external experts<br />
are consulted, public and private data and<br />
reports are reviewed and exist<strong>in</strong>g regulations<br />
and how they may change <strong>in</strong> the future are<br />
considered.<br />
More focus on It Managers at erpec 13<br />
With technology on a typical <strong>fuel</strong> station<br />
becom<strong>in</strong>g ever more sophisticated and<br />
with dispenser manufacturers focus<strong>in</strong>g as<br />
much time on sell<strong>in</strong>g soft<strong>war</strong>e systems as<br />
they are sell<strong>in</strong>g pumps, the IT Manager <strong>in</strong><br />
oil company retail operations, is becom<strong>in</strong>g<br />
one of the most important members of the<br />
eng<strong>in</strong>eer<strong>in</strong>g team.<br />
At a recent <strong>in</strong>dustry trade fair, VP Global<br />
Strategic Accounts and Global Market<strong>in</strong>g<br />
at Wayne, Brad Schumacher, po<strong>in</strong>ted out<br />
that IT executives now play a major role <strong>in</strong><br />
the development of effective retail soft<strong>war</strong>e<br />
solutions on the forecourt. He added that<br />
at major <strong>in</strong>dustry gather<strong>in</strong>gs it is becom<strong>in</strong>g<br />
more and more important for IT personnel<br />
to be <strong>in</strong> attendance alongside technical and<br />
procurement executives, a po<strong>in</strong>t not lost by<br />
Nick Needs, organiser of erpec, who has<br />
extended <strong>in</strong>vitations for next year’s event to<br />
<strong>in</strong>clude IT departments from all the major<br />
oil companies.<br />
Comment<strong>in</strong>g on this he said: “We have<br />
had some good response to this <strong>in</strong>itiative<br />
from a number of oil companies attend<strong>in</strong>g<br />
and have been delighted to receive our first<br />
registrations from IT related people, <strong>in</strong> this<br />
<strong>in</strong>stance com<strong>in</strong>g from the MoL Group <strong>in</strong><br />
Hungary, nom<strong>in</strong>at<strong>in</strong>g its Head of Global<br />
Industrial IT Solutions Development and<br />
its Thematic Leader of Global Retail / Card<br />
Application Development, as part of its five<br />
man delegation team”.<br />
Places are still available at erpec 13 for oil<br />
companies, major retailers and <strong>in</strong>ternational<br />
suppliers of retail petroleum equipment. Tak<strong>in</strong>g<br />
place <strong>in</strong> Nice, France from 16 – 18 April 2013.<br />
More details can be found at www.erpec.com
Family firm has big growth plan<br />
Maxol is stepp<strong>in</strong>g up expansion <strong>in</strong> post-boom<br />
Ireland – pick<strong>in</strong>g potential sites carefully and<br />
provid<strong>in</strong>g much-needed jobs to these localities.<br />
It’s fair to say that Maxol does not fit<br />
the stereotypical image of ‘big oil’. Some 90<br />
years after it was founded by the McMullan<br />
family, the bus<strong>in</strong>ess is still a far cry from the<br />
‘Dallas’ image and its Chief Executive, Tom<br />
Noonan, is about as far away from JR Ew<strong>in</strong>g<br />
as you can get. Maxol has been someth<strong>in</strong>g of<br />
an anomaly <strong>in</strong> Irish <strong>in</strong>dustry <strong>in</strong> recent years.<br />
While it seemed for a while that every bus<strong>in</strong>ess<br />
was expand<strong>in</strong>g rapidly and was report<strong>in</strong>g<br />
turbocharged profits, Maxol was potter<strong>in</strong>g<br />
along at a steady pace, but was hardly sett<strong>in</strong>g<br />
the world on fire. Cut to today and many of<br />
those turbocharged profits have disappeared<br />
as quickly as they appeared, but Maxol is still<br />
carry<strong>in</strong>g on as it always has. Under Noonan,<br />
there are now about 225 Maxol service stations<br />
around the island. With turnover of close<br />
to 650 million euros a year, the bus<strong>in</strong>ess is<br />
grow<strong>in</strong>g steadily but is now plann<strong>in</strong>g a huge<br />
expansion.<br />
bP and rosneft plan tNK <strong>in</strong>tegration<br />
The news followed talks between BP Chief<br />
Bob Dudley and Rosneft president Igor Sech<strong>in</strong><br />
<strong>in</strong> Moscow who met for only the second time<br />
s<strong>in</strong>ce late october, when the pair agreed a<br />
$ 27 billion (£ 17 billion) deal that would see<br />
BP sell its half of the venture. BP has taken<br />
a near-20pc stake <strong>in</strong> Rosneft as part of the<br />
deal and has told its shareholders it believes it<br />
can help to drive synergies and boost returns.<br />
Rosneft has also agreed to buy the other half<br />
of TNK-BP from BP’s oligarch partners, the<br />
Low quality <strong>fuel</strong> <strong>in</strong> bulgaria shr<strong>in</strong>ks<br />
The share of low quality <strong>fuel</strong> on the Bulgarian<br />
market has decreased five-fold over the past<br />
four years, accord<strong>in</strong>g to Petar Kostad<strong>in</strong>ov<br />
from the State Agency for Metrology and<br />
Technical Surveillance (SAMTS). Kostad<strong>in</strong>ov<br />
expla<strong>in</strong>ed that the share of poor quality <strong>fuel</strong><br />
on the Bulgarian market amounted to slightly<br />
over 3 percent <strong>in</strong> 2012. The SAMTS Chief<br />
Secretary, as cited by Darik radio, made clear<br />
that offenders used a range of components to<br />
dilute <strong>fuel</strong>, thereby lower<strong>in</strong>g its quality. Kostad<strong>in</strong>ov<br />
specified that the share of low quality<br />
Alfa-Access-Renova consortium, with both<br />
deals expected to complete <strong>in</strong> the first half<br />
of this year. Mr Sech<strong>in</strong> will chair the steer<strong>in</strong>g<br />
committee co-ord<strong>in</strong>at<strong>in</strong>g the <strong>in</strong>tegration of<br />
TNK-BP’s assets. In a statement, BP and Rosneft<br />
said they had “confirmed their commitment<br />
to efficient <strong>in</strong>tegration of the companies and<br />
agreed that the process is a unique opportunity<br />
to br<strong>in</strong>g many of the world’s best bus<strong>in</strong>ess<br />
and technical practices <strong>in</strong>to the comb<strong>in</strong>ed<br />
company <strong>in</strong> a short time frame”.<br />
<strong>fuel</strong> had only registered slight decreases by<br />
2009. He noted that it had taken other EU<br />
member states 4–5 years to curb the share of<br />
substandard <strong>fuel</strong> after the imposition of strict<br />
control, while the process <strong>in</strong> Bulgaria had<br />
necessitated 6–7 years. The expert argued<br />
that the share of 3.4 percent of poor quality<br />
<strong>fuel</strong> <strong>in</strong> 2013 placed Bulgaria at a good level<br />
around the EU average. He underscored that<br />
Bulgaria had reached a good score <strong>in</strong> curb<strong>in</strong>g<br />
sales of poor quality <strong>fuel</strong> on the tenth year<br />
after impos<strong>in</strong>g str<strong>in</strong>gent control.<br />
latest news, events, jobs onl<strong>in</strong>e – www.PetrolPlaza.com<br />
News – eUroPe<br />
PKN takes writedown<br />
on Unipetrol<br />
PKN orlen has written down the value<br />
of its Czech ref<strong>in</strong><strong>in</strong>g arm Unipetrol, a<br />
move that pushed the company <strong>in</strong>to a<br />
quarterly loss of US $ 227 million. PKN<br />
has a 63 percent share <strong>in</strong> Unipetrol and<br />
recorded a US $ 236 million impairment on<br />
the hold<strong>in</strong>g. Unipetrol’s Head of Investor<br />
Relations, Michal Stupavsky, said Uni -<br />
petrol may be sell<strong>in</strong>g assets <strong>in</strong> the near<br />
future, <strong>in</strong>clud<strong>in</strong>g the Paramo unit, which<br />
ended process<strong>in</strong>g of crude last year. “The<br />
sale is very likely <strong>in</strong> the foreseeable future”,<br />
he said, decl<strong>in</strong><strong>in</strong>g to comment on a possible<br />
buyer for the bus<strong>in</strong>ess.<br />
totAL ref<strong>in</strong>ery to<br />
restructure<br />
ToTAL’s L<strong>in</strong>dsey oil Ref<strong>in</strong>ery <strong>in</strong> the UK is<br />
set to become a separate company as part<br />
of a restructur<strong>in</strong>g process to create 24 new<br />
jobs at the site. ToTAL LoR will become<br />
a separate company from Spr<strong>in</strong>g 2013,<br />
assum<strong>in</strong>g day-to-day control of ToTAL’s<br />
ref<strong>in</strong><strong>in</strong>g bus<strong>in</strong>ess, storage term<strong>in</strong>als and<br />
logistics <strong>in</strong>frastructure <strong>in</strong> Brita<strong>in</strong>. ToTAL<br />
has <strong>in</strong>vested more than £ 600 million <strong>in</strong><br />
the 220 000 barrel per day plant <strong>in</strong> recent<br />
years. The site returned to profit <strong>in</strong> autumn<br />
of 2012. The <strong>in</strong>dependent company will<br />
<strong>in</strong>corporate L<strong>in</strong>dsey’s 1 000 strong team of<br />
employees and contractors, along with the<br />
employees and management operations at<br />
term<strong>in</strong>als across the UK.<br />
11
News – eUroPe<br />
12<br />
French <strong>fuel</strong> consumption<br />
decreases <strong>in</strong> 2012<br />
Accord<strong>in</strong>g to the latest figures from the<br />
Professional Committee of oil (PDCC),<br />
deliveries of <strong>fuel</strong> on the French market<br />
totalled 3.91 million cubic meters <strong>in</strong><br />
December 2012 (-2 percent compared to<br />
December 2011). This decrease resulted<br />
from a decrease of 11.4 percent deliveries<br />
super<strong>fuel</strong>s SP and a decrease of 5 percent<br />
of deliveries. The general decl<strong>in</strong>e seems<br />
to result from both improved energy<br />
performance of vehicles and consumer<br />
rejection of high price <strong>fuel</strong>.<br />
Fuel giant PKN orlen<br />
pushes up prices<br />
Polish oil ref<strong>in</strong>er and petrol retailer PKN<br />
orlen has raised its wholesale prices of<br />
unleaded petrol and diesel. Accord<strong>in</strong>g to<br />
a statement released by the company <strong>in</strong><br />
Plock, Central Poland, wholesale prices for<br />
its Superplus 98 and diesel <strong>fuel</strong> will rise.<br />
Fuel stations will adjust the ultimate retail<br />
price, with costs unlikely to go beyond<br />
an <strong>in</strong>crease of 0.002 euro per litre. The<br />
current rise marks the eighth hike <strong>in</strong> <strong>fuel</strong><br />
prices <strong>in</strong> a year. PKN orlen, which also<br />
operates <strong>in</strong> the Czech Republic, Germany<br />
and across the Baltic states, is among the<br />
largest oil companies <strong>in</strong> Europe.<br />
shaws <strong>Petroleum</strong><br />
agrees sale<br />
Shaws <strong>Petroleum</strong> UK is to be swallowed<br />
up by Midlands Co-operative Society<br />
after the company’s Manag<strong>in</strong>g Director,<br />
Paul Sykes, agreed to sell his company<br />
for an undisclosed amount. Sykes, who<br />
has led the company for 35 years, saw<br />
his company record a £ 30.5 million<br />
profit last year, £ 22.2 million of which<br />
came from <strong>fuel</strong> sales. The company has<br />
five <strong>fuel</strong> service stations actively trad<strong>in</strong>g<br />
at present.<br />
topaz <strong>in</strong>vests to<br />
secure jobs<br />
Topaz Energy, Ireland’s largest <strong>fuel</strong> and<br />
convenience retailer, has <strong>in</strong>vested €1.35 million<br />
euro <strong>in</strong> five <strong>fuel</strong> service stations to<br />
secure 82 jobs, prevent<strong>in</strong>g the closure of<br />
the sites, br<strong>in</strong>g<strong>in</strong>g the company’s workforce<br />
up to over 1 600 people. Topaz has<br />
cont<strong>in</strong>ued to grow its bus<strong>in</strong>ess despite<br />
challeng<strong>in</strong>g local market conditions. The<br />
company’s turnover has reached 3 billion<br />
euro, with 1.8 million euro transactions<br />
tak<strong>in</strong>g place every month across a network<br />
of 328 <strong>fuel</strong> service stations.<br />
DCC w<strong>in</strong>s approval for acquisition<br />
DCC PLC has announced that the UK office<br />
of Fair Trad<strong>in</strong>g (oFT) has formally cleared the<br />
company’s acquisition of BP’s LPG bus<strong>in</strong>ess<br />
<strong>in</strong> Brita<strong>in</strong>. The acquisition was completed <strong>in</strong><br />
late September 2012. DCC had undertaken<br />
LAtest News, eveNts, Jobs oNLINe – www.PetroLPLAzA.CoM<br />
to hold the BP LPG bus<strong>in</strong>ess separately from<br />
its Flogas brand pend<strong>in</strong>g approval. Follow<strong>in</strong>g<br />
the oFT’s decision to approve the transaction,<br />
DCC said, it is now free to <strong>in</strong>tegrate BP’s LPG<br />
distribution bus<strong>in</strong>ess with Flogas.<br />
Phillips 66 announces new dealer services<br />
In the UK Phillips 66 has <strong>in</strong>troduced two new<br />
<strong>in</strong>itiatives aimed at <strong>in</strong>creas<strong>in</strong>g the profitability<br />
of dealers under their Jet brand. The firm is<br />
partner<strong>in</strong>g with lead<strong>in</strong>g equipment suppliers<br />
Tokheim and Istobal to add the new services.<br />
Tokheim is fulfill<strong>in</strong>g a dispenser ma<strong>in</strong>tenance<br />
contract, respond<strong>in</strong>g to research carried out<br />
by Phillips 66 <strong>in</strong>to the pump ma<strong>in</strong>tenance<br />
requirements of a cross-section of its Jet<br />
dealers. Istobal, meanwhile, if offer<strong>in</strong>g a free<br />
health check for the car washes, jet washes,<br />
air mach<strong>in</strong>es and vacuums at Jet sites. “We<br />
pride ourselves on cont<strong>in</strong>ually meet<strong>in</strong>g and<br />
listen<strong>in</strong>g to our dealers. At the heart of any<br />
dealers’ bus<strong>in</strong>ess are the <strong>fuel</strong> pumps. Without<br />
them operat<strong>in</strong>g to their full ability, customers<br />
are simply unable to buy <strong>fuel</strong> and are unlikely<br />
to return, due to their perception that ‘Jet<br />
pumps don’t work”, expla<strong>in</strong>ed Sharon Morrow,<br />
Brand and Communications Co-ord<strong>in</strong>ator at<br />
Jet. “It’s vital for us to learn and understand<br />
dealers’ requirements, to enable them to be<br />
able to excel <strong>in</strong> their operations. We believe<br />
our new pump ma<strong>in</strong>tenance contract will<br />
improve not only service to our dealers, but<br />
also the service they offer to their customers.”<br />
First motorway stations <strong>in</strong> Northern Ireland<br />
Plann<strong>in</strong>g permission has been granted to<br />
build Northern Ireland’s first motorway<br />
<strong>fuel</strong> stations. For the first time, Northern<br />
Ireland commuters will not have to exit the<br />
motorway <strong>in</strong> search of <strong>fuel</strong>. The four proposed<br />
stations will <strong>in</strong>clude direct slip roads from<br />
the motorways <strong>in</strong> both directions, giv<strong>in</strong>g<br />
what the operators hope will be quick and<br />
easy access for drivers. Their development<br />
will provide a significant boost to the local<br />
economy, with a potential <strong>in</strong>vestment of some<br />
£ 20 million. The construction will be done<br />
<strong>in</strong> phases, allow<strong>in</strong>g the <strong>fuel</strong> stations to open<br />
before the other facilities. The development<br />
has already been recommended for approval<br />
by DoE Plann<strong>in</strong>g.<br />
supermarket <strong>fuel</strong> ‘puts 1 000 <strong>in</strong>dependents at risk’<br />
In the UK up to 1 000 <strong>in</strong>dependent forecourts<br />
could be “wiped out” by 2017 as they lose customers<br />
to new supermarket <strong>fuel</strong> stations, the<br />
Petrol Retailers’ Association (PRA) has <strong>war</strong>ned.<br />
An average of 40 supermarket forecourts a year<br />
have been granted plann<strong>in</strong>g permission s<strong>in</strong>ce<br />
2009, a study by Christie & Co on behalf of<br />
the trade body has found. Steve Rodell, head<br />
of retail at Christie & Co, said: “If applications<br />
cont<strong>in</strong>ue at the same rate and there is<br />
no reason to believe that will not be the case,<br />
there will be another 160 supermarket sites<br />
soCAr rebrands esso stations<br />
The State oil Company of Azerbaijan (SoCAR)<br />
has began the re-brand<strong>in</strong>g and re-development<br />
of its network of Esso <strong>fuel</strong> stations acquired<br />
by the end of 2016.” Supermarkets seek<strong>in</strong>g<br />
to establish more “standalone” forecourt sites<br />
could result <strong>in</strong> the open<strong>in</strong>g of a further 25 to<br />
40 new <strong>fuel</strong> stations operated by the retail<br />
giants each year, the PRA said. It claimed<br />
that “every new supermarket site is suck<strong>in</strong>g<br />
the equivalent volume of five <strong>in</strong>dependents<br />
out of the market”. Brian Madderson, PRA<br />
Chairman, added: “If left unchecked the<br />
expected growth <strong>in</strong> supermarket forecourts<br />
would kill off 1 000 <strong>in</strong>dependents over the<br />
next four years.”<br />
from ExxonMobil Esso Switzerland GmbH.<br />
SoCAR Energy Switzerland’s General Director<br />
Edgar Bachmann has stated that before the<br />
2nd half of next year the 160 Esso petrol stations<br />
will operate under brand SoCAR flame.<br />
SoCAR believe their ‘flame’ logo is a highly<br />
visible symbol of the best service <strong>in</strong> the retail<br />
and energy bus<strong>in</strong>ess. They want to provide<br />
the widest distribution of this new premium<br />
brand <strong>in</strong> Switzerland, requir<strong>in</strong>g high-quality,<br />
exceptional customer service, high standards<br />
of safety and good government.
latest news, events, jobs onl<strong>in</strong>e – www.PetrolPlaza.com<br />
13
ProDUCt News<br />
14<br />
retalix shareholders<br />
approve NCr buy-out<br />
Shareholders <strong>in</strong> Retalix, a provider of soft<strong>war</strong>e<br />
and services for <strong>fuel</strong> retailers, have<br />
approved a takeover of the company by<br />
NCR Corporation. The transaction rema<strong>in</strong>s<br />
subject to regulatory approval and certa<strong>in</strong><br />
other clos<strong>in</strong>g conditions, while at least 30<br />
days must pass before it becomes effective<br />
under Israeli law. The Takeover is expected<br />
to be completed dur<strong>in</strong>g the first quarter of<br />
this year. The company serves a customer<br />
base of approximately 70 000 stores across<br />
more than 50 countries from its headquarters<br />
<strong>in</strong> Ra’anana, Israel and its North<br />
America headquarters <strong>in</strong> Plano, Texas.<br />
w<strong>in</strong>cor Nixdorf enters<br />
mobile wallet space<br />
W<strong>in</strong>cor Nixdorf Inc., a lead<strong>in</strong>g provider<br />
of IT solutions and services to retailers<br />
and retail banks, is roll<strong>in</strong>g out the W<strong>in</strong>cor<br />
Wallet for mobile cashless payments <strong>in</strong><br />
all retail sales channels, <strong>in</strong>clud<strong>in</strong>g <strong>fuel</strong><br />
stations, turn<strong>in</strong>g the smart-phone <strong>in</strong>to a<br />
wallet.Whether <strong>in</strong> stationary retail, web<br />
shops or mobile stores, the W<strong>in</strong>cor Wallet<br />
can be accessed for mobile payment by all<br />
standard smart-phones through the use of<br />
QR codes or near-field communication<br />
(NFC) technology. The W<strong>in</strong>cor Nixdorf’s<br />
Payment Gateway server operat<strong>in</strong>g <strong>in</strong> the<br />
background enables the solution. In addition<br />
to process<strong>in</strong>g traditional, card-based<br />
payments, this also allows modern Wallet<br />
transactions to be processed <strong>in</strong> an IT environment<br />
certified by the Payment Card<br />
Industry (PCI), which ensures the security<br />
of the cashless transactions. The W<strong>in</strong>cor<br />
Wallet provides a platform for comb<strong>in</strong><strong>in</strong>g<br />
different mobile payment and loyalty solutions<br />
such as mobile use of debit or credit<br />
cards, mobile coupons or redeem<strong>in</strong>g mobile<br />
vouchers at the checkout via smart-phone,<br />
the company said.<br />
All text on this page is submitted and written by suppliers. Please email product news to editor@erpecnews.com<br />
KPs opens new subsidiary <strong>in</strong> turkey<br />
Kungsörs Plast AB, the supplier of the KPS<br />
Petrol Pipe System, announced that a subsidiary<br />
opens <strong>in</strong> Turkey with Mr Ali Güler<br />
as Regional Sales Manager, work<strong>in</strong>g out of<br />
Istanbul. Staffan Helleday, Sales Director<br />
KPS HQ and Ali Güler, Regional Sales<br />
Manager KPS Turkey. Mr Güler will further<br />
strengthen the customer support and<br />
service offer <strong>in</strong> Turkey and he will cont<strong>in</strong>ue<br />
the tra<strong>in</strong><strong>in</strong>g system and <strong>in</strong>troduce the KPS<br />
Petrol Pipe System conductive system all<br />
LAtest News, eveNts, Jobs oNLINe – www.PetroLPLAzA.CoM<br />
over the country. Staffan Helleday, Sales<br />
Director of KPS said: “KPS welcomes this<br />
progress and we are very positive to<strong>war</strong>ds the<br />
expansion <strong>in</strong> Turkey and we are accelerat<strong>in</strong>g<br />
our activities further by sett<strong>in</strong>g up a local<br />
sales subsidiary and <strong>war</strong>ehouse to serve our<br />
customers <strong>in</strong> Turkey better.” We <strong>in</strong>vite you<br />
to come and meet KPS Turkey at <strong>Petroleum</strong><br />
Istanbul Exhibition between the 11th and<br />
14th of April 2013. Welcome to our booth<br />
<strong>in</strong> Hall 8, at Petrol Expo.<br />
New tokheim Italy website is onl<strong>in</strong>e<br />
Tokheim, one of the world’s largest suppliers of<br />
<strong>fuel</strong> retail<strong>in</strong>g solutions, announces the launch<br />
of its new Italian website as part of its global<br />
rebrand<strong>in</strong>g strategy. The new Italian website<br />
gives an overview of all products and services<br />
relat<strong>in</strong>g to the local marketplace. News that<br />
is relevant to the Italian <strong>fuel</strong> retail<strong>in</strong>g sector<br />
will be regularly updated. A new set of additional<br />
sales material for all of Tokheim Italy’s<br />
NUPIGeCo PP-rCt NIroN system<br />
NUPIGECo has obta<strong>in</strong>ed its first certificate of<br />
conformity IIP for its NIRoN pip<strong>in</strong>g produced<br />
with PP-RCT raw material. PP-RCT is a new<br />
generation of polypropylene, already <strong>in</strong>cluded<br />
<strong>in</strong> EN ISo 15874 standard. It represents the<br />
evolution of Polypropylene Random with better<br />
performance than its predecessor PPR80.<br />
Furthermore, with the same outside diameter,<br />
the flow rate of the fluid is higher. PP-RCT<br />
allows for a more str<strong>in</strong>gent classification, per-<br />
products and services is now also available to<br />
download. Fabiano Clerico, General Manager<br />
Italy, says, “Tokheim is the largest supplier<br />
of solutions to the <strong>fuel</strong> retail sector <strong>in</strong> Italy.<br />
It is important that we are able to share the<br />
excit<strong>in</strong>g range of products and services we<br />
offer <strong>in</strong> a clear and <strong>in</strong>novative manner. our<br />
customers have moved more to<strong>war</strong>ds digital<br />
communications and we are happy to communicate<br />
with them <strong>in</strong> a more modern way.<br />
We will cont<strong>in</strong>ue to engage with customers<br />
through our social media platforms.” Tokheim’s<br />
website was recently nom<strong>in</strong>ated for a CSS<br />
Design A<strong>war</strong>d and it is now available <strong>in</strong> Italian,<br />
English and French. Additional country<br />
specific sites will go live <strong>in</strong> the com<strong>in</strong>g months.<br />
To visit the Italian website directly, go to<br />
www.tokheim.com/it.<br />
mitt<strong>in</strong>g it to reach class 5 of the EN ISo 15874<br />
standard (performance at high temperatures)<br />
before reserved only for PEX and PB. The high<br />
performance ability of the material allows it to<br />
achieve the same performance as PPR80 by<br />
reduc<strong>in</strong>g the wall thickness and <strong>in</strong>creas<strong>in</strong>g the<br />
flow rate of the fluid. NUPIGECo S.p.A - Via<br />
Stefano Ferrario Z.I. Sud-ovest - 21052 Busto<br />
Arsizio (VA) Italy - tel.: +39.0331.344211 - fax:<br />
+39.0331.351860 www.nupigeco.com
All text on this page is submitted and written by suppliers. Please email product news to editor@erpecnews.com<br />
Codax helps shell control car wash sales<br />
PSD Codax is help<strong>in</strong>g retail giant Shell<br />
strengthen control of car wash sales at its<br />
UK forecourts. New Codax Code Generator<br />
technology is be<strong>in</strong>g <strong>in</strong>tegrated with po<strong>in</strong>t of<br />
sale (PoS) systems at more than 150 Shell<br />
UK forecourt sites follow<strong>in</strong>g a deal with PoS<br />
IT support company W<strong>in</strong>cor-Nixdorf. L<strong>in</strong>k<strong>in</strong>g<br />
Codax technology with its PoS systems will<br />
enable Shell head office to gather accurate<br />
data about car wash sales and customer<br />
buy<strong>in</strong>g habits. It will also help retailers<br />
improve revenue control and simplify the<br />
sales process for shop staff who will be able<br />
to sell washes direct from their PoS screen.<br />
A s<strong>in</strong>gle Codax Code Generator Term<strong>in</strong>al<br />
(CCGT), which has ethernet connectivity,<br />
elim<strong>in</strong>ates the need for under-counter wir<strong>in</strong>g<br />
and multiple Codax ticket pr<strong>in</strong>ter term<strong>in</strong>als.<br />
The CCGT plugs directly <strong>in</strong>to the <strong>in</strong>-store<br />
network so that all PoS term<strong>in</strong>als can be<br />
used to sell car wash and jet wash programmes<br />
and customer access code tickets are then<br />
pr<strong>in</strong>ted by the local PoS retail pr<strong>in</strong>ter. Car<br />
wash codes are issued only after a sale has<br />
been completed which stops unauthorised<br />
issues and speeds up the sales process and<br />
greatly improves the daily reconciliation<br />
process for station managers.<br />
relaunch of Hectronic company website<br />
Hectronic is proud to <strong>in</strong>troduce its redesigned<br />
website. The comparison between the old<br />
website, on the left hand side and the new<br />
version, on the right is shown below. There<br />
have been significant renewals, especially<br />
with regard to the Hectronic image change<br />
from a product manufacturer to a solution<br />
provider. Hectronic’s updated website has<br />
a new “Solutions” area where you can f<strong>in</strong>d<br />
<strong>in</strong>telligent and perfectly coord<strong>in</strong>ated system<br />
solutions for <strong>fuel</strong> station management. Furthermore<br />
the new design of the site is matched<br />
to Hectronic’s Corporate Design. Visitors can<br />
access the three ma<strong>in</strong> areas directly from the<br />
home page: Park<strong>in</strong>g, Re<strong>fuel</strong>l<strong>in</strong>g and Sensor<br />
Systems. The redesigned website gives users<br />
a quick and structured overview about the<br />
entire Hectronic portfolio.<br />
washtec strengthens activities at the truckwash<br />
WashTec, a lead<strong>in</strong>g manufacturer of vehicle<br />
wash systems, has big plans for 2013 and<br />
puts specifically the clean<strong>in</strong>g and ma<strong>in</strong>tenance<br />
of busses and trucks <strong>in</strong> the focus of<br />
its activities. New product manager for the<br />
bus and truck wash division Hans-Peter Popp<br />
has announced the roll-out of a number of<br />
different products for the new commercial<br />
l<strong>in</strong>e MaxiWash. Prior to jo<strong>in</strong><strong>in</strong>g WashTec<br />
<strong>in</strong> 2006, Popp worked for many years as a<br />
product manager <strong>in</strong> the commercial vehicle<br />
sector.<br />
Frankl<strong>in</strong> appo<strong>in</strong>ts southern African Master Distributors<br />
Southern African Master Distributors has<br />
been appo<strong>in</strong>ted as an official distributor of<br />
UPP pip<strong>in</strong>g and conta<strong>in</strong>ment systems for<br />
Frankl<strong>in</strong> Fuel<strong>in</strong>g Systems, the companies have<br />
announced. “With effect from 21st January<br />
2013, Southern African Master Distributors<br />
will undertake the Southern African distribution<br />
of Frankl<strong>in</strong> Fuel<strong>in</strong>g Systems Pip<strong>in</strong>g<br />
& Conta<strong>in</strong>ment, featur<strong>in</strong>g UPP semi-rigid<br />
pipework, Gem<strong>in</strong>i secondary conta<strong>in</strong>ment<br />
and electro-fusion conta<strong>in</strong>ment systems”,<br />
said a Frankl<strong>in</strong> statement. “The transition to<br />
this new distribution structure is a focused<br />
strategy on the part of Frankl<strong>in</strong> Fuel<strong>in</strong>g<br />
Systems to align the core competencies of<br />
our exist<strong>in</strong>g distributor networks with the<br />
<strong>in</strong>herent requirements of specific product<br />
brands. The new distribution structure is<br />
<strong>in</strong>tended to impart logistical efficiencies to<br />
the market, foster a competitive customer<br />
service environment, and <strong>in</strong>crease po<strong>in</strong>ts<br />
of supply and availability to all customers,<br />
<strong>in</strong>clud<strong>in</strong>g Major oil’s and Installation<br />
Companies.” Accord<strong>in</strong>g to the company, the<br />
need for a resilient supply channel able to<br />
offer products that underwrite the Health,<br />
Safety and Environmental (HSE) expectations<br />
associated with the UPP brand was a<br />
key driver of the decision to name a specialist<br />
distributor for the market. “Southern African<br />
Master Distributors (SAMD) is also able to<br />
offer cont<strong>in</strong>u<strong>in</strong>g professional development<br />
tra<strong>in</strong><strong>in</strong>g on UPP brand products to <strong>in</strong>stallers<br />
with<strong>in</strong> Southern Africa”, Frankl<strong>in</strong> noted.<br />
“The addition of the well-known quality UPP<br />
brand to SAMD’s product l<strong>in</strong>e is another<br />
step <strong>in</strong> position<strong>in</strong>g Southern African Master<br />
Distributors as the broad-based supplier of<br />
choice for all retail forecourt equipment.<br />
We are delighted to be represent<strong>in</strong>g UPP <strong>in</strong><br />
our market<strong>in</strong>g territories”, said Kev<strong>in</strong> Black,<br />
Manag<strong>in</strong>g Director of Southern African<br />
Master Distributors. SAMD also took over<br />
the Southern African <strong>in</strong>terests of Dresser<br />
Wayne <strong>in</strong> 2004. The firm has s<strong>in</strong>ce worked<br />
to distribute dispensers, forecourt control<br />
systems, ATG, pump ma<strong>in</strong>tenance, PoS<br />
and now adds pipework to its competencies.<br />
latest news, events, jobs onl<strong>in</strong>e – www.PetrolPlaza.com<br />
Kss Fuels unveils<br />
survey highlight<strong>in</strong>g<br />
<strong>fuel</strong> pric<strong>in</strong>g trends<br />
ProDUCt News<br />
KSS Fuels, a leader <strong>in</strong> <strong>fuel</strong>s pric<strong>in</strong>g and<br />
retail location <strong>in</strong>telligence, unveiled the<br />
results of its multi-country survey <strong>in</strong>to<br />
current <strong>fuel</strong> pric<strong>in</strong>g practices and the<br />
steps <strong>fuel</strong> retailers are tak<strong>in</strong>g to cope<br />
with the cont<strong>in</strong>ued rise <strong>in</strong> competition<br />
for market share amid static or fall<strong>in</strong>g<br />
demand for motor <strong>fuel</strong>s. Compris<strong>in</strong>g<br />
feedback from executives at retail petroleum<br />
companies operat<strong>in</strong>g more than<br />
11 000 sites <strong>in</strong> 14 countries, responses<br />
reveal a significant shift <strong>in</strong> the attitude<br />
of <strong>fuel</strong> retailers to<strong>war</strong>d technology and<br />
a grow<strong>in</strong>g desire to understand how the<br />
comb<strong>in</strong>ation of improved processes and<br />
predictive analytics drive bottom-l<strong>in</strong>e<br />
results. Survey f<strong>in</strong>d<strong>in</strong>gs show a grow<strong>in</strong>g<br />
trend to move away from <strong>in</strong>-house developed<br />
pric<strong>in</strong>g systems to commercially<br />
developed and ma<strong>in</strong>ta<strong>in</strong>ed applications,<br />
with 76 percent of respondents stat<strong>in</strong>g<br />
they use third party pric<strong>in</strong>g applications,<br />
of which 62 percent chose a KSS Fuels<br />
application. “This most recent survey<br />
<strong>in</strong>dicates a significant shift <strong>in</strong> <strong>fuel</strong> retailers’<br />
attitudes to<strong>war</strong>d advanced analytics<br />
and decision support, highlight<strong>in</strong>g that<br />
today’s market conditions and <strong>in</strong>creas<strong>in</strong>g<br />
competition are demand<strong>in</strong>g a more<br />
sophisticated approach to <strong>fuel</strong>s pric<strong>in</strong>g”,<br />
said Bob Ste<strong>in</strong>, President and CEo of<br />
KSS Fuels. “We’re see<strong>in</strong>g an <strong>in</strong>creas<strong>in</strong>g<br />
number of <strong>fuel</strong> retailers mov<strong>in</strong>g away from<br />
<strong>in</strong>-house tools and spread-sheets to adopt<br />
dedicated commercial applications that<br />
are ma<strong>in</strong>ta<strong>in</strong>ed and updated by bus<strong>in</strong>ess<br />
specialists like KSS Fuels.”<br />
tokheim achieves<br />
full compliance<br />
Tokheim has announced that it is now PCI<br />
DSS certified for its onl<strong>in</strong>e Authorisation<br />
and Switch<strong>in</strong>g Environment (oASE) payment<br />
gateway service. This certification<br />
has been a<strong>war</strong>ded subsequent to a comprehensive<br />
audit that took place <strong>in</strong> September<br />
last year. Tokheim’s oASE, facilitates <strong>fuel</strong><br />
and bank card payments <strong>in</strong> a <strong>fuel</strong> retail<br />
environment and it currently processes<br />
more than 300 million transactions per<br />
year. PCI DSS is a multifaceted security<br />
standard that <strong>in</strong>cludes requirements for<br />
security management, policies, procedures,<br />
network architecture, soft<strong>war</strong>e design<br />
and other critical protective measures.<br />
This comprehensive standard is <strong>in</strong> place<br />
to proactively support organisations to<br />
protect their customer account data.<br />
15
FAIrbANKs – AN INteLLIGeNt FUtUre<br />
16<br />
bob Conl<strong>in</strong>,<br />
Manag<strong>in</strong>g Director<br />
An <strong>in</strong>telligent future for<br />
Fairbanks by Nick Needs<br />
Last August, Shell a<strong>war</strong>ded a three year<br />
global wetstock contract to UK based company<br />
Fairbanks, <strong>in</strong> partnership with systems and<br />
dispenser manufacturer ToKHEIM, to deliver<br />
its services to more than 3 000 petrol stations,<br />
<strong>in</strong> 25 countries, across three cont<strong>in</strong>ents. At<br />
the time Shell’s Wetstock Manager for North<br />
West Europe, Peter Houlton said, “Shell identified<br />
a number of sites which would benefit<br />
from remote wet stock monitor<strong>in</strong>g dur<strong>in</strong>g a<br />
recent risk assessment. Fairbanks emerged<br />
as our provider of choice after a comprehensive<br />
tender process and comparative trial of<br />
service providers. Fairbanks offer Statistical<br />
Inventory Reconciliation Analysis (SIRA)<br />
and Real Time monitor<strong>in</strong>g to a high standard.<br />
Fairbanks’ wetstock management service will<br />
be critical to help manage our global petrol<br />
retail network us<strong>in</strong>g various data capture<br />
solutions and valuable report<strong>in</strong>g methods and<br />
we are look<strong>in</strong>g for<strong>war</strong>d to work<strong>in</strong>g with them<br />
over the com<strong>in</strong>g years.” Baudou<strong>in</strong> de la Tour,<br />
ToKHEIM CEo, said, “We are very pleased<br />
with the success of the Fairbanks-ToKHEIM<br />
partnership <strong>in</strong> the worldwide Shell tender for<br />
wet stock monitor<strong>in</strong>g”. We aim to provide a<br />
range of products and services that provide<br />
genu<strong>in</strong>e return on <strong>in</strong>vestment to our customers<br />
around the world. In 2010 Fairbanks jo<strong>in</strong>ed<br />
forces with ToKHEIM, a global service sta-<br />
LAtest News, eveNts, Jobs oNLINe – www.PetroLPLAzA.CoM<br />
tions solution provider, to help expand the<br />
bus<strong>in</strong>ess <strong>in</strong>ternationally.<br />
It must be said that this achievement is a<br />
significant milestone <strong>in</strong> the company’s history<br />
and re<strong>war</strong>d for the hard work carried out by<br />
Directors Bob Conl<strong>in</strong> and Steve Jones over<br />
the last 20 years. The hair on Steve’s head<br />
has def<strong>in</strong>itely turned much whiter <strong>in</strong> that time,<br />
whilst on Bob’s there just seems to be far less<br />
of it, but Bob also seems to have become far<br />
more relaxed, or is it more accomplished <strong>in</strong> his<br />
manner and appearance dur<strong>in</strong>g the time I have<br />
known him, a good attribute <strong>in</strong> any Manag<strong>in</strong>g<br />
Director. In any event, I felt, it was def<strong>in</strong>itely<br />
the right time to get Mr Conl<strong>in</strong> to talk some<br />
more about Fairbanks and ask him to identify<br />
the challenges and opportunities he feels<br />
retailers will be fac<strong>in</strong>g over the com<strong>in</strong>g years.<br />
From my perspective there are a number<br />
of company profiles which I tend to lump<br />
together and believe that the suppliers <strong>in</strong><br />
question all roughly do the same th<strong>in</strong>g. Leak<br />
detection, tank monitor<strong>in</strong>g, leak prevention,<br />
<strong>fuel</strong> monitor<strong>in</strong>g, tank gaug<strong>in</strong>g etc., but the<br />
more I probe (forgive the pun) <strong>in</strong>to this whole<br />
subject, every company <strong>in</strong>volved <strong>in</strong> this l<strong>in</strong>e<br />
of bus<strong>in</strong>ess does seem to have its own unique<br />
concept po<strong>in</strong>t. Fairbanks is no exception and<br />
over the next two pages you will hopefully see<br />
why. I took Bob through a simple questions<br />
and answer session to which he was happy to<br />
supply answers <strong>in</strong> typical Bob style i. e. well<br />
thought out and no stone unturned!<br />
I first asked him to expla<strong>in</strong> the market<strong>in</strong>g<br />
objectives of Fairbanks and detail the benefits<br />
retailers can achieve by adopt<strong>in</strong>g their<br />
specific company offer<strong>in</strong>g. He replied “Fuel<br />
profit marg<strong>in</strong>s are be<strong>in</strong>g squeezed each year<br />
and the value of <strong>fuel</strong> losses is <strong>in</strong>creas<strong>in</strong>g. We<br />
show retailers how their bus<strong>in</strong>ess can save mon -<br />
ey on ma<strong>in</strong>tenance, reduced <strong>fuel</strong> losses and<br />
lower their risk, all at the same time through<br />
remote wetstock management, powered by<br />
‘real-time data’. Improv<strong>in</strong>g retail petroleum<br />
bus<strong>in</strong>ess through better <strong>fuel</strong> control, is our<br />
primary market<strong>in</strong>g objective. When talk<strong>in</strong>g to<br />
retailers we offer to share with them a vision<br />
of their bus<strong>in</strong>ess <strong>in</strong> the future, powered by an<br />
<strong>in</strong>telligent <strong>fuel</strong> control system, giv<strong>in</strong>g them<br />
visibility of their product from <strong>fuel</strong> term<strong>in</strong>al<br />
to customer vehicle”.<br />
To best expla<strong>in</strong> all this <strong>in</strong> a straight for<strong>war</strong>d and<br />
concise manner i. e. simple, I asked Bob if he<br />
could present to me, imag<strong>in</strong><strong>in</strong>g I was a retailer<br />
<strong>in</strong>terested <strong>in</strong> utilis<strong>in</strong>g the services Fairbanks
has to offer. Bob was extremely pleased to<br />
conduct this undertak<strong>in</strong>g and promptly moved<br />
up another three gears.<br />
He cont<strong>in</strong>ued. “Imag<strong>in</strong>e for a moment that all<br />
of the <strong>in</strong>formation collected by the equipment<br />
on your site was available to you with the click<br />
of a button, collat<strong>in</strong>g all the data across all of<br />
the sites <strong>in</strong> your network <strong>in</strong>stantly. How powerful<br />
a tool would that be? Many retailers have<br />
<strong>in</strong>vested heavily <strong>in</strong>to <strong>in</strong>stall<strong>in</strong>g expensive onsite<br />
equipment such as Automatic Tank Gauges<br />
(ATG) and high-end dispensers. This type of<br />
equipment is a valuable asset to the effective<br />
runn<strong>in</strong>g of a petrol forecourt. But <strong>in</strong> many cases<br />
retailers are fail<strong>in</strong>g to take full advantage of the<br />
tools, <strong>in</strong>formation and visibility of stock that<br />
this type of equipment makes available to them.”<br />
The answer he said is a real-time wetstock<br />
management solution which collects and collates<br />
this data mak<strong>in</strong>g it available to retailers<br />
<strong>in</strong> real-time. “Hav<strong>in</strong>g a real-time wetstock<br />
solution <strong>in</strong> place is the miss<strong>in</strong>g l<strong>in</strong>k between<br />
your site equipment and you. The data is<br />
gathered and made available <strong>in</strong> the form of<br />
<strong>in</strong>telligent management reports that can be<br />
generated onl<strong>in</strong>e from a mobile phone or laptop,<br />
elim<strong>in</strong>at<strong>in</strong>g the unnecessary data track<strong>in</strong>g<br />
that usually requires visits or phone calls to<br />
numerous sites, reduc<strong>in</strong>g workload for area<br />
or network managers. This <strong>in</strong>telligent data<br />
report<strong>in</strong>g uses not only the <strong>fuel</strong> <strong>in</strong>formation<br />
but sales records also. This means that <strong>fuel</strong><br />
purchas<strong>in</strong>g decisions can be made <strong>in</strong>telligently<br />
as anticipated sales and stock hold<strong>in</strong>gs across<br />
sites can be viewed <strong>in</strong>stantly.”<br />
Controll<strong>in</strong>g <strong>fuel</strong> <strong>in</strong>vestment<br />
Across a network of sites many thousands of<br />
euros worth of <strong>fuel</strong> can be delivered <strong>in</strong> just one<br />
week, and Fairbanks state that by <strong>in</strong>creas<strong>in</strong>g<br />
stock visibility retailers can account for every<br />
litre that is delivered, thereby protect<strong>in</strong>g their<br />
<strong>in</strong>vestment. Bob added “Losses don’t just happen<br />
on the forecourt, delivery based losses are<br />
an <strong>in</strong>creas<strong>in</strong>gly common headache for retailers.<br />
When an order of 10 000 litres of product is<br />
made, this is the amount that one would expect<br />
to be dropped <strong>in</strong>to the tank, but that is very<br />
rarely the case. Fuel can often travel many<br />
kilometres before it is delivered to a service<br />
station and as a result of this, transit can be<br />
heavily impacted by temperature changes. Add<br />
to that the issues with short deliveries, tanker<br />
thefts and tanker leaks and all of sudden a<br />
delivery provides retailers with a number of<br />
areas of concern. Unfortunately it is impossible<br />
to be present at every s<strong>in</strong>gle delivery<br />
across even a small network of sites, so how<br />
can retailers be sure of what they are gett<strong>in</strong>g<br />
delivered? An <strong>in</strong>telligent wetstock management<br />
solution would be able to identify exactly how<br />
much <strong>fuel</strong> was dropped <strong>in</strong>to the tank even if<br />
sales are tak<strong>in</strong>g place at the same time. This<br />
means that retailers can be made a<strong>war</strong>e of<br />
any discrepancies between the <strong>fuel</strong> that they<br />
ordered and the <strong>fuel</strong> actually received <strong>in</strong>to the<br />
tank by mak<strong>in</strong>g the data available onl<strong>in</strong>e to<br />
be viewed from home or the office”.<br />
Limit<strong>in</strong>g losses<br />
An <strong>in</strong>vestigation to identify the source of losses<br />
on a forecourt traditionally <strong>in</strong>volves extensive<br />
l<strong>in</strong>e and tank test<strong>in</strong>g, dispenser isolation and<br />
costly ma<strong>in</strong>tenance call-outs, but Fairbanks<br />
confidently po<strong>in</strong>t to the fact that a real-time <strong>fuel</strong><br />
management solution will identify the source<br />
of a loss <strong>in</strong> a matter of days rather than weeks.<br />
Bob expla<strong>in</strong>s “Data collected by a real-time<br />
wetstock management system will relay all of<br />
this <strong>in</strong>formation back to a data analyst. At this<br />
po<strong>in</strong>t the data can be exam<strong>in</strong>ed and losses will<br />
be identified. Concurrently the data is submitted<br />
to an accredited statistical test<strong>in</strong>g regimen<br />
run by the system, giv<strong>in</strong>g retailers the security<br />
of a soft<strong>war</strong>e solution and the reassurance of<br />
human <strong>in</strong>volvement and communication. By<br />
monitor<strong>in</strong>g <strong>fuel</strong> movement across the site the<br />
data analyst can quickly p<strong>in</strong> po<strong>in</strong>t the source<br />
of the losses and then work with the retailer to<br />
achieve a positive solution. This full visibility of<br />
<strong>fuel</strong> movement on site will even identify losses<br />
that would otherwise be disguised by equipment<br />
such as Automatic Temperature Compensat<strong>in</strong>g<br />
(ATC) dispensers and vapour recovery systems<br />
that would impact on the amount of <strong>fuel</strong> <strong>in</strong> the<br />
tank. The above image shows the amount of<br />
losses experienced by some of our customers<br />
from when they implemented the real-time<br />
solution that we offer until today.”<br />
I asked what would happen <strong>in</strong> the unlikely case<br />
that somebody stole all the <strong>fuel</strong> from a tank,<br />
when for example the site is closed. Not duck<strong>in</strong>g<br />
the question at all Bob answered “ Effective<br />
wetstock management can protect <strong>fuel</strong> <strong>in</strong><br />
<strong>in</strong>stances where <strong>fuel</strong> is lost very quickly, such<br />
latest news, events, jobs onl<strong>in</strong>e – www.PetrolPlaza.com<br />
FAIrbANKs – AN INteLLIGeNt FUtUre<br />
as a theft directly from the tank as you suggest.<br />
By hav<strong>in</strong>g a predeterm<strong>in</strong>ed loss threshold set<br />
for when forecourts are closed retailers can<br />
be alerted to a theft as it is happen<strong>in</strong>g. This<br />
detection system is <strong>in</strong> place to identify theft<br />
at any time. We actually have a recent case<br />
which demonstrates my po<strong>in</strong>t precisely.<br />
on Christmas day, at 1:17am, just for the<br />
record, the ibank (Fairbanks’ data collection<br />
and analysis module) <strong>in</strong>stalled on site detected<br />
a sudden loss of more than 200 litres on Tank<br />
5 diesel, which triggered the Night Time Loss<br />
alert. With<strong>in</strong> 15 m<strong>in</strong>utes the alert was sent<br />
to the Fairbanks offices and automatically<br />
for<strong>war</strong>ded onto the security company cover<strong>in</strong>g<br />
the customer’s network of service stations. This<br />
meant that the customer could react to the<br />
situation even though the <strong>in</strong>cident occurred<br />
on a national bank holiday. Without hav<strong>in</strong>g<br />
a wetstock management system <strong>in</strong> place the<br />
thieves would have long s<strong>in</strong>ce fled the site<br />
before the loss was discovered”.<br />
theft Case study<br />
The other important area of loss prevention<br />
Bob was keen to identify was <strong>in</strong> relation to<br />
leaks. In his summary of what was an excellent<br />
presentation he said “ Notwithstand<strong>in</strong>g<br />
potential damage to the environment, the costs<br />
of clean<strong>in</strong>g up a leak can run <strong>in</strong>to the many<br />
thousands of euros putt<strong>in</strong>g most bus<strong>in</strong>esses<br />
<strong>in</strong>to serious f<strong>in</strong>ancial difficulty or even out<br />
of bus<strong>in</strong>ess altogether. A real-time wetstock<br />
system will give you the time and direction<br />
necessary to take action and recover the situation,<br />
24 hours a day 365 days a year. So no<br />
matter when a leak starts you’ll be given the<br />
tools to deal with it <strong>in</strong> a timely manner”.<br />
Bob will be represent<strong>in</strong>g Fairbanks at the upcom<strong>in</strong>g<br />
erpec 13 event <strong>in</strong> Nice from the 16th<br />
to the 18th of April, 2013 and said he would<br />
be more than happy to offer help and advice to<br />
any retailers who have serious concerns about<br />
this whole subject or perhaps those who just<br />
need a little reassurance.<br />
More details at www.fairbanks.co.uk<br />
17
Georgia a<strong>war</strong>ds<br />
tender to LUKoIL<br />
News from Russia & Cis<br />
Georgia’s Government has agreed to purchase<br />
motor <strong>fuel</strong> from Russian firm LUKoIL. The<br />
supply tender <strong>in</strong>cludes gasol<strong>in</strong>e of the Super,<br />
Premium and EuroDiesel types with a total<br />
volume of 56 million litres. Smaller supply<br />
agreements, with a volume of approximately<br />
5 million litres, have been a<strong>war</strong>ded to Rompetrol<br />
and Wissol. Georgia’s Competition and<br />
State Procurement Agency noted that the<br />
consolidated tender was declared <strong>in</strong> Georgia<br />
for the first time and that maximum transparency<br />
of the procedure and equal conditions<br />
were provided for all participants.<br />
Gazprom wants 50<br />
stations <strong>in</strong> romania<br />
The first Gazprom <strong>fuel</strong> station on Romanian<br />
soil was opened <strong>in</strong> Sibiu, on Christmas Eve.<br />
The entire cha<strong>in</strong> of local stations will be under<br />
the management of the Serbian NIS group,<br />
which is controlled by Gazprom. Romania is<br />
the second largest European market on which<br />
Gazprom <strong>fuel</strong> stations now operate. on December<br />
19 the first Gazprom <strong>fuel</strong> station was<br />
opened <strong>in</strong> Serbia. Plans for development on<br />
the retail segment under this brand <strong>in</strong>clude<br />
Bulgaria, Bosnia and Herzegov<strong>in</strong>a. By the end<br />
of 2013 the Gazprom network of <strong>fuel</strong> stations<br />
<strong>in</strong> the Balkans is expected to have reached<br />
100 units. “The development of Gazprom <strong>fuel</strong><br />
stations <strong>in</strong> the Balkans is our strategic objective”,<br />
stated Alexander Dyukov, Chairman of<br />
the Gazprom Neft Board of Directors. “We<br />
aim to expand <strong>in</strong> Serbia and Romania and<br />
the next step is to enter the Bulgarian market.<br />
I am confident that <strong>in</strong> the near future the<br />
network of Gazprom <strong>fuel</strong> stations will spread<br />
through the Balkans and take over leadership<br />
of the market.”<br />
LUKoIL considers<br />
expand<strong>in</strong>g to Lebanon<br />
LUKoIL may become the first Russian oil<br />
company <strong>in</strong> Lebanon. LUKoIL, operat<strong>in</strong>g<br />
<strong>in</strong> West Africa and Romania, is <strong>in</strong>terested<br />
<strong>in</strong> w<strong>in</strong>n<strong>in</strong>g a government tender to develop<br />
offshore fields <strong>in</strong> Lebanon. LUKoIL’ competition<br />
<strong>in</strong> the tender <strong>in</strong>cludes other <strong>in</strong>ternational<br />
companies, U.S.-based Chevron and Exxon-<br />
Mobil, France’s ToTAL, Ch<strong>in</strong>a’s CNooC<br />
and Russia’s Gazprom.<br />
soCAr to implement major projects<br />
Construction of a new complex process<strong>in</strong>g<br />
oil, gas and petrochemicals <strong>in</strong> Azerbaijan<br />
is the largest project to be implemented <strong>in</strong><br />
the next few years, not only for the State oil<br />
Company of Azerbaijan (SoCAR), but for<br />
the whole country. This was recently stated<br />
by head of SoCAR Rovnag Abdullayev dur<strong>in</strong>g<br />
a meet<strong>in</strong>g with the president and CEo<br />
of the American company Air Products John<br />
McGlade. Accord<strong>in</strong>g to a statement issued by<br />
SoCAR, Abdullayev spoke about projects<br />
implemented by the State oil Company <strong>in</strong><br />
Turkey, construction of a new shipyard and<br />
the Sumgayit plant for production of nitrogen<br />
fertilisers <strong>in</strong> Azerbaijan, construction of a<br />
18<br />
LAtest News, LAtest eveNts, rUssIA News Jobs oNLINe – www.PetroLPLAzA.CoM<br />
– www.PetroLPLAzA.CoM<br />
new oil ref<strong>in</strong>ery <strong>in</strong> Turkey, expansion of the<br />
petrochemical complex Petkim’s port, as well<br />
as a power plant to be built there. “These are<br />
big challenges for SoCAR and its partners <strong>in</strong><br />
the next five years”, Abdullayev said. The Air<br />
Products Company has more than 20 years<br />
of experience <strong>in</strong> manufactur<strong>in</strong>g equipment<br />
for the production of <strong>in</strong>dustrial and liquefied<br />
gas for oil ref<strong>in</strong><strong>in</strong>g and petrochemical <strong>in</strong>dustry<br />
facilities. The company has more than<br />
40 subsidiaries and its annual sales exceed<br />
$10 billion. SoCAR <strong>in</strong>cludes production<br />
association Azneft (companies produc<strong>in</strong>g<br />
oil and gas on land and sea) and Production<br />
Association Azerkimya (chemical <strong>in</strong>dustry), as<br />
well as production association Azerigas (gas<br />
distribution).The State oil Company is the<br />
only producer of oil products <strong>in</strong> the country (it<br />
has two ref<strong>in</strong>eries on its assets sheet) and also<br />
owns petrol stations <strong>in</strong> Azerbaijan, Georgia,<br />
Ukra<strong>in</strong>e and Romania. SoCAR possesses<br />
a network of petrol stations <strong>in</strong> Switzerland<br />
and is the co-owner of the largest Turkish<br />
petrochemical complex Petkim.<br />
rosneft and saras sign venture deal<br />
Russian oil giant Rosneft has put pen to<br />
paper on a jo<strong>in</strong>t venture agreement with<br />
Italy’s Saras, with the focus on develop<strong>in</strong>g<br />
the 300 000 barrel-a-day Sarroch facility <strong>in</strong><br />
Sard<strong>in</strong>ia. The venture, a 50/50 partnership,<br />
will see the two cooperate on crude oil<br />
process<strong>in</strong>g and the sale of ref<strong>in</strong>ed products.<br />
The deal comes as more and more European<br />
ref<strong>in</strong>ers are be<strong>in</strong>g forced to go <strong>in</strong>to bus<strong>in</strong>ess<br />
with producers from outside their regular<br />
sphere of operation. Saras’ compatriot ERG,<br />
which has already sold its stake <strong>in</strong> a Romebased<br />
venture it engaged <strong>in</strong> with ToTAL,<br />
has <strong>in</strong>dicated that it may sell its rema<strong>in</strong><strong>in</strong>g<br />
20 percent stake <strong>in</strong> the Priolo ISAB facility<br />
to LUKoIL.<br />
tAtNeFt switches <strong>in</strong>formation system<br />
The TATNEFT group has switched its central<br />
logistics management <strong>in</strong>formation system to a<br />
new SAP version, the company has confirmed.<br />
The E-Store project has been <strong>in</strong>tegrated with<br />
logistics, f<strong>in</strong>ance, controll<strong>in</strong>g, budget<strong>in</strong>g, project<br />
management and TATNEFT’s electronic<br />
trad<strong>in</strong>g platform. In addition to updat<strong>in</strong>g the<br />
system, the expanded functionality of the SAP<br />
ERP 6.0 version has offered new capabilities,<br />
<strong>in</strong>clud<strong>in</strong>g a process of manag<strong>in</strong>g contracts for<br />
deliveries. Standard user roles have also been<br />
worked out that allow to quickly connect new<br />
employees to the system, as well as assign<strong>in</strong>g<br />
new functions and powers.<br />
rosneft’s tNK-bP purchase approved<br />
Russia’s Federal Antimonopoly Service has<br />
approved oAo Rosneft’s (RoSN.RS) purchase<br />
of Russian oil producer TNK-BP Hold<strong>in</strong>g<br />
(TNBP.RS), clear<strong>in</strong>g the way for the statecontrolled<br />
firm to become the world’s largest<br />
listed crude producer. Igor Artemyev, the head<br />
of the Federal Antimonopoly Service said that<br />
Rosneft will be obliged to sell off some gas<br />
stations <strong>in</strong> regions where the companies will<br />
own more than half of the total. BP will hold<br />
a 19.8 percent stake <strong>in</strong> Rosneft as part of its<br />
deal to sell out of TNK-BP.
April 16 th to 18 th<br />
Spr<strong>in</strong>g 2013<br />
13<br />
Palais De La Méditerranée<br />
Nice, France<br />
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aLTERNaTiVEfUeL News<br />
ohio powers up electric vehicle charg<strong>in</strong>g stations<br />
Dubl<strong>in</strong>, ohio has taken upon itself meet<strong>in</strong>g<br />
the recharg<strong>in</strong>g needs of environmentally conscious<br />
drivers. The city has <strong>in</strong>stalled electric<br />
vehicle charg<strong>in</strong>g stations to meet what it calls<br />
a grow<strong>in</strong>g <strong>in</strong>terest <strong>in</strong> alternative <strong>fuel</strong> vehicles.<br />
The $ 28 400 units are free of charge to the<br />
public. Half the cost of the project is shared<br />
by Columbus-based Clean Fuels ohio, a statewide<br />
non-profit organization that promotes the<br />
use of clean <strong>fuel</strong>s and energy-efficient vehicles.<br />
The city’s first publicly owned charg<strong>in</strong>g station<br />
is part of its overall push for clean energy.<br />
world’s largest companies embrace clean energy<br />
A majority of the world’s largest companies<br />
are not wait<strong>in</strong>g for governments to mandate<br />
renewable energy and lower greenhouse gas<br />
emissions, they are tak<strong>in</strong>g it upon themselves<br />
to act first. A new report from <strong>in</strong>vestment<br />
and conservation organizations shows that<br />
more than half of the Fortune 100 and<br />
more than two-thirds of the Global 100<br />
have set carbon emissions reduction commitments,<br />
renewable energy commitments<br />
or both. “The global transition to a lower<br />
carbon economy is accelerat<strong>in</strong>g due to ris<strong>in</strong>g<br />
public concern about climate change”,<br />
states the report. AT&T, DuPont, General<br />
Motors, Google, HP, Spr<strong>in</strong>t and Walmart are<br />
among the corporations that have set their<br />
own renewable energy and greenhouse gas<br />
goals. Despite glacial progress on climate<br />
and energy policy <strong>in</strong> the U.S. Congress and<br />
at the United Nations climate change talks<br />
that concluded <strong>in</strong> <strong>Qatar</strong> 9th December, the<br />
report from Calvert Investments, Ceres and<br />
World Wildlife Fund shows that clean energy<br />
practices are becom<strong>in</strong>g standard for some of<br />
the largest and most profitable companies<br />
<strong>in</strong> the world. The report, “Power For<strong>war</strong>d:<br />
Why the World’s Largest Companies are<br />
Invest<strong>in</strong>g <strong>in</strong> Renewable Energy”, shows<br />
that a majority of Fortune 100 companies<br />
have set a renewable energy commitment,<br />
a greenhouse gas emissions reduction commitment<br />
or both. The trend is even stronger<br />
<strong>in</strong>ternationally, as more than two-thirds of<br />
Fortune’s Global 100 have set the same commitments.<br />
The report was prepared by David<br />
Gard<strong>in</strong>er & Associates with the guidance<br />
of WWF, Ceres and Calvert staff. It was<br />
sourced from analysis of corporate public<br />
disclosures as well as two dozen <strong>in</strong>terviews<br />
with Fortune and Global 100 executives.<br />
“When a majority of the world’s largest<br />
companies are <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> clean energy, you<br />
can truly see its value”, said M<strong>in</strong>dy Lubber,<br />
President of Ceres, a coalition of <strong>in</strong>vestors,<br />
companies and public <strong>in</strong>terest groups. Ceres<br />
also directs the Investor Network on Climate<br />
Risk, 100 <strong>in</strong>stitutional <strong>in</strong>vestors with assets<br />
total<strong>in</strong>g more than $ 10 trillion. “It speaks<br />
volumes that almost all of these companies<br />
set their renewable energy and greenhouse<br />
gas goals after the economic downturn, precisely<br />
because they understand the economic<br />
benefits of efficiency and renewable energy”,<br />
said Lubber. “We encourage lawmakers to<br />
support policies that help companies meet<br />
and strengthen their clean energy goals.”<br />
The report shows that 96 companies from<br />
the comb<strong>in</strong>ed 173 companies <strong>in</strong> the Fortune<br />
100 and Global 100 have set greenhouse<br />
gas reduction goals – 56 percent. of those,<br />
23 companies have set specific goals for<br />
renewable energy use, with others us<strong>in</strong>g<br />
renewable energy to meet their greenhouse<br />
gas goals. Many companies are shift<strong>in</strong>g from<br />
purchas<strong>in</strong>g short-term, temporary Renewable<br />
Energy Credits to longer-term <strong>in</strong>vestment<br />
strategies like Power Purchase Agreements<br />
and on-site projects, <strong>in</strong>dicat<strong>in</strong>g a long-term<br />
commitment to renewable energy and reap<strong>in</strong>g<br />
the benefits of reduced price volatility,<br />
accord<strong>in</strong>g to the report. “The companies that<br />
are boldly sett<strong>in</strong>g either greenhouse gas or<br />
renewable energy goals and mak<strong>in</strong>g progress<br />
on those commitments are demonstrat<strong>in</strong>g<br />
the bus<strong>in</strong>ess case and real leadership on<br />
climate change”, said Marty Spitzer, Director<br />
of U.S. Climate Policy with WWF, the<br />
global conservation organization. “And, <strong>in</strong><br />
the process”, said Spitzer, “these companies<br />
are chang<strong>in</strong>g the game – driv<strong>in</strong>g significant<br />
renewable energy <strong>in</strong>vestment globally and<br />
press<strong>in</strong>g for the right policy and market<br />
conditions that will allow companies to do<br />
even more.”<br />
News<br />
Neste oil <strong>jo<strong>in</strong>s</strong> aviation<br />
bio-<strong>fuel</strong> <strong>in</strong>itiative<br />
F<strong>in</strong>nish renewable <strong>fuel</strong> developer Neste oil<br />
will jo<strong>in</strong> hands with the European Union<br />
(EU)-backed ‘Initiative To<strong>war</strong>ds Susta<strong>in</strong>able<br />
Kerosene for Aviation’ (ITAKA) project to<br />
promote the use of susta<strong>in</strong>able bio-<strong>fuel</strong>s <strong>in</strong><br />
aviation. A consortium of companies are<br />
currently tak<strong>in</strong>g part <strong>in</strong> the 36-month ITAKA<br />
project, funded through an EU grant of<br />
10 million under the EU Seventh Framework<br />
Programme for Research and Development<br />
(2007–2013). Neste oil will produce 4 000 tons<br />
of NExBTL renewable aviation <strong>fuel</strong>, produced<br />
from Spanish camel<strong>in</strong>a oil and used cook<strong>in</strong>g<br />
oil, for the project.<br />
H2 mobility <strong>in</strong>itiative<br />
<strong>in</strong> Germany<br />
Build<strong>in</strong>g up a re<strong>fuel</strong>l<strong>in</strong>g station network for<br />
<strong>fuel</strong> cell electric vehicles is tak<strong>in</strong>g on a concrete<br />
form. The current partners <strong>in</strong> the H2<br />
Mobility <strong>in</strong>itiative (Air Liquide, Daimler,<br />
L<strong>in</strong>de, oMV, Shell and ToTAL) are work<strong>in</strong>g<br />
on implement<strong>in</strong>g a bus<strong>in</strong>ess model to build<br />
up a nation-wide hydrogen re<strong>fuel</strong>l<strong>in</strong>g station<br />
network <strong>in</strong> Germany. The objective of this<br />
<strong>in</strong>itiative is to prepare for the planned series<br />
launch of <strong>fuel</strong> cell electric vehicles and build<br />
up a hydrogen station network <strong>in</strong>frastructure.<br />
As well as the six partners, seven associated<br />
partners from the automotive <strong>in</strong>dustry (BMW,<br />
Honda, Hyundai, Intelligent Energy, Nissan,<br />
Toyota and Volkswagen) as well as the National<br />
organization of Hydrogen and Fuel Cell<br />
Technology (NoW) as <strong>in</strong>terface to Germany’s<br />
federal government are also <strong>in</strong>volved.<br />
tesla adds to ev<br />
supercharger network<br />
Tesla has expanded its network of super charg -<br />
ers to the East Coast of the US. The Tesla<br />
Model S charg<strong>in</strong>g stations, which can add 150<br />
miles of range to a car <strong>in</strong> only 30 m<strong>in</strong>utes, have<br />
been established Milford, Connecticut and<br />
Ne<strong>war</strong>k, Dela<strong>war</strong>e. Tesla’s orig<strong>in</strong>al network<br />
of six charg<strong>in</strong>g stations stretched from Los<br />
Angeles to northern California. The company<br />
plans to have 100 new Superchargers across<br />
North America by 2015.<br />
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21
Couche-tard acquires<br />
29 stores<br />
All stores offer motor <strong>fuel</strong> branded Phillips 66.<br />
They would eventually be rebranded under<br />
the Circle K brand and cont<strong>in</strong>ue to offer<br />
motor <strong>fuel</strong> under Phillips 66. Couche-Tard’s<br />
Midwest division would operate 28 of them,<br />
the other operated by the Southwest division.<br />
Pursuant to this transaction, Couche-Tard<br />
would buy the land and build<strong>in</strong>gs for 25<br />
locations and would assume or enter <strong>in</strong>to<br />
leases for the rema<strong>in</strong><strong>in</strong>g locations.<br />
Murphy oil expands<br />
through wal-Mart<br />
Murphy oil Corp has announced that its<br />
wholly-owned subsidiary, Murphy oil USA,<br />
Inc., has entered <strong>in</strong>to an agreement with<br />
Wal-Mart Stores, Inc. to provide access to<br />
over 200 new <strong>fuel</strong> service stations with<strong>in</strong><br />
its core market area cover<strong>in</strong>g the Midwest<br />
and Southeast United States. Under the<br />
terms of the agreement, Murphy USA will<br />
have the opportunity to build over 200 new<br />
<strong>fuel</strong> service stations at exist<strong>in</strong>g Walmart<br />
supercentres. The construction program<br />
is expected to be completed over the next<br />
three years.<br />
7-Eleven acquires<br />
143 sites<br />
7-Eleven has made a significant acquisition<br />
of 143 sites <strong>in</strong> south Texas. from C. L.<br />
Thomas. The, transaction adds to a previous<br />
acquisition of 25 convenience stores <strong>in</strong> the<br />
state from Tetco and <strong>in</strong>cludes <strong>fuel</strong> distribution<br />
to approximately 150 dealer-operated<br />
<strong>fuel</strong> service stations. The retail sites are<br />
branded as Speedy Stop and Tigermarket.<br />
&-Eleven plans to <strong>in</strong>terview and offer positions<br />
to qualified employees <strong>in</strong> the stores<br />
and rebrand a significant number of locations<br />
dur<strong>in</strong>g 2013.<br />
usa News<br />
New <strong>fuel</strong> distribution <strong>in</strong>surance program<br />
National Interstate Insurance Company is<br />
plann<strong>in</strong>g to offer a new <strong>fuel</strong> distribution <strong>in</strong>surance<br />
program, <strong>in</strong> an effort to strengthen its<br />
long-stand<strong>in</strong>g captive <strong>fuel</strong> distribution bus<strong>in</strong>ess.<br />
Effective s<strong>in</strong>ce January, the new program<br />
<strong>in</strong>volves residential propane and <strong>fuel</strong> dealers<br />
AtM legislation becomes law<br />
President obama has signed <strong>in</strong>to law NACSsupported<br />
legislation that elim<strong>in</strong>ates a regulatory<br />
provision – one that has become the<br />
source of frivolous lawsuits aimed at operators<br />
of ATMs. Regulations required ATM opera -<br />
tors to post both a notice of a transaction<br />
fee on or near the ATM and provide an onscreen<br />
notice of the fee dur<strong>in</strong>g the transaction.<br />
Under the Electronic Fund Transfer Act, a<br />
consumer who uses an ATM which does not<br />
have a notice of a transaction fee posted and<br />
is charged a fee, can br<strong>in</strong>g an action aga<strong>in</strong>st<br />
22<br />
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with a commitment to safety and strong risk<br />
man agement practises. Coverage options <strong>in</strong> -<br />
clude auto liability, general liability, auto physical<br />
damage, workers’ compensation, as well<br />
as property and excess umbrella, with crime<br />
and <strong>in</strong>land mar<strong>in</strong>e coverage upon request.<br />
the ATM operator and recover statutory<br />
damages between US $ 100 and US $ 1 000<br />
for each transaction – regardless of whether<br />
the consumer suffered any actual <strong>in</strong>jury.<br />
Representative Bla<strong>in</strong>e Luetkmeyer (R-Mo)<br />
<strong>in</strong>troduced legislation to elim<strong>in</strong>ate this redundant<br />
requirement when he learned that one<br />
<strong>in</strong>dividual <strong>in</strong> Missouri had successfully filed<br />
suit aga<strong>in</strong>st five ATM operators and secured<br />
more than US $ 100 000 <strong>in</strong> settlements. He<br />
referred to the legislation as a “commonsense<br />
fix” to crack down on nuisance lawsuits.<br />
Kwik trip expands CNG station network <strong>in</strong> UsA<br />
La Crosse-based Kwik Trip has began sell<strong>in</strong>g<br />
compressed natural gas at its <strong>fuel</strong><strong>in</strong>g station<br />
<strong>in</strong> M<strong>in</strong>nesota City, USA. Kwik Trip now has<br />
n<strong>in</strong>e stations across Wiscons<strong>in</strong>, Iowa and<br />
M<strong>in</strong>nesota that sell compressed natural gas<br />
and it <strong>in</strong>tends to open many more, said Joel<br />
Hirschboeck, the company’s super<strong>in</strong>tendent<br />
of alternative <strong>fuel</strong>. CNG emissions are about<br />
90 percent lower than diesel, mak<strong>in</strong>g the <strong>fuel</strong><br />
especially attractive to bus<strong>in</strong>esses that have<br />
truck fleets. The national trade organization<br />
NGVAmerica estimates CNG <strong>fuel</strong> consumption<br />
has grown by about 15 percent a year<br />
s<strong>in</strong>ce 2006.<br />
source upgrade their dispens<strong>in</strong>g applications<br />
Source North America Corporation, a<br />
major <strong>fuel</strong>l<strong>in</strong>g equipment distributor <strong>in</strong> North<br />
America, is now assembl<strong>in</strong>g curb pump<br />
dispens<strong>in</strong>g hoses as per the requirements<br />
of the UL 330 application process that took<br />
effect on 1st January 2013 which specify<br />
the use of approved flammable liquid hose<br />
assemblies, consist<strong>in</strong>g of flexible hose and<br />
fitt<strong>in</strong>gs suitable for attachment to flammable<br />
liquid dispens<strong>in</strong>g equipment. Curb pump<br />
hoses have been specifically designed for<br />
conventional dispens<strong>in</strong>g applications that<br />
require a hard-wall construction for full flow<br />
and no <strong>in</strong>ternal spr<strong>in</strong>g guards, mak<strong>in</strong>g them<br />
ideal for use with gasol<strong>in</strong>e, diesel, ethanol up<br />
to E15 and biodiesel up to B20.<br />
Jones & Frank acquires reliable oil equipment<br />
Jones & Frank has acquired the assets of Reliable<br />
oil Equipment, a distributor and service<br />
provider headquartered <strong>in</strong> ohio. The comb<strong>in</strong>ed<br />
organisation will have 22 branch offices, three<br />
distribution centres and personnel <strong>in</strong> 20 states.<br />
After completion of the merger, Jones & Frank<br />
will employ over 175 certified technicians strategically<br />
located to deliver a wide array of equipment<br />
and services. “We are very excited about this<br />
acquisition and the depth that the strong team<br />
at Reliable adds to our bus<strong>in</strong>ess. The blend<strong>in</strong>g<br />
of key resources from both organizations will<br />
translate <strong>in</strong>to <strong>in</strong>creased efficiencies to better<br />
serve our customer”, said Jones & Frank CEo<br />
Sterl<strong>in</strong>g Baker. “The acquisition also adds to<br />
our capacity and geographic presence to better<br />
service the s<strong>in</strong>gle store operator or the national<br />
retailer with multiple locations.”
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