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an international retail petroleum news digest<br />

www.<strong>erpecnews</strong>.com<br />

austria – oMV’s shares in Petrol ofisi<br />

oMV has agreed with the Turkish company<br />

Doğan Holding to increase oMV’s stake<br />

in Petrol ofisi A.S. from 41.58 percent to<br />

Issue No 24 | November / December 2010<br />

<strong>erpecnews</strong><br />

euroPeaN eDItIoN<br />

95.75 percent, for EUR 1bn. thereby taking<br />

full control of this company. This acquisition<br />

is a further step in oMV’s growth strategy<br />

and aims at positioning Turkey as a third hub,<br />

besides Austria and Romania. oMV and Doğan<br />

Holding have agreed to distribute a dividend<br />

to Petrol ofisi shareholders before closing.<br />

Based on their respective shareholdings oMV<br />

shall receive US $ 203 million, Doğan Holding<br />

US $ 265 million and US $ 21 million shall<br />

be paid to free-float investors.<br />

KPS and agip go plastic in Germany<br />

Installers from Tokheim Göhler have now<br />

installed the first German filling station<br />

with plastic pipes from KPS. The KPS Petrol<br />

Pipe System was approved by DIBt for the<br />

German market earlier this year, after extensive<br />

evaluation and testing where the pipes<br />

showed zero permeation. Tokheim Göhler’s<br />

pipe installers were trained and certified by<br />

KPS during the summer in handling of plastic<br />

pipes and fittings, electrofusion welding,<br />

bedding, backfill, conductivity testing and<br />

pressure and tightness testing. The piping<br />

for the Agip filling station in Messkirch in<br />

southern Germany was installed in october.<br />

KPS Area Manager Ronald Pinka and Per<br />

Andersson from KPS Technical Support<br />

were on site to assist during the installation.<br />

The pipe installation successfully passed all<br />

installation tests and is now waiting for the<br />

rest of the station to be finished before it is<br />

put into operation. lars Selling, CEo of KPS,<br />

commented, “The interest from the major<br />

oil companies present in Germany has been<br />

overwhelming. The advantages of a corrosion<br />

free and affordable piping solution are<br />

obvious to everyone and we will work hard to<br />

prepare designers and installers for a smooth<br />

transition to plastic petrol piping on this steeldominated<br />

market”. KPS Petrol Pipe System<br />

is approved to EN 14125, Ul 971, ATEX 137,<br />

EN 13463-1 and IP 2. KPS conductive pipes<br />

are also approved for Germany.<br />

rosneft to build and<br />

drill in abkhazi<br />

Rosneft will start oil exploration activities<br />

in Georgia’s breakaway region of Abkhazia,<br />

according to de facto Abkhazian President,<br />

Sergey Baghapsh. “Rosneft has actually<br />

started work already. The territories on<br />

Abkhazia’s Black Sea coastline have been<br />

marked and the equipment is being brought”<br />

Baghapsh said. Rosneft will open several<br />

petrol stations in Abkhazia, according to<br />

Baghapsh. “It is a purely economic project”,<br />

he noted, adding that the fact that Rosneft<br />

is investing in Abkhazia, will also encourage<br />

others to do so. “I think that the interest<br />

towards Abkhazia is huge.<br />

Greenergy considers<br />

800 uK stations<br />

U.K. energy company Greenergy is considering<br />

buying 800 gasoline stations in the U.K.<br />

that have been put up for sale by French oil<br />

major ToTAl SA. Greenergy, partly owned<br />

by Tesco PlC and Barclays PlC, may bid<br />

for Total's network – which accounts for<br />

nearly 10 percent of the U.K. market – to<br />

gain control of the infrastructure behind<br />

it, including tankers, terminals and the<br />

247 kilometre underground pipeline from<br />

its lindsey refinery in lincolnshire to the<br />

Buncefield fuel depot in Hertfordshire in<br />

the southeast of the U.K.<br />

<strong>erpecnews</strong> is published by McLean events in conjunction with PetrolPlaza – www.<strong>erpecnews</strong>.com


CreDItS<br />

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<strong>erpecnews</strong><br />

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Printed by<br />

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<strong>erpecnews</strong> is published monthly by Mclean Events<br />

Europe ltd in conjunction with PetrolPlaza.com and<br />

distributed to retail petroleum operations in Europe<br />

and the Middle East. Mclean Events Europe is the<br />

organiser of erpec, the leading business event, held<br />

every two years, for Europe’s retail petroleum market.<br />

Copyright<br />

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McLean Events<br />

Foreigners share 65 percent of fuel distribution in turkey<br />

With Austrian oMV having acquired Dogan<br />

Holding's stake in Turkey's leading fuel and<br />

lubricants distribution company, Petrol<br />

ofisi, the total market share of the five<br />

foreign companies in Turkey – oMV, Shell,<br />

BP, Total and lUKoIl-Alpet – has gone up<br />

to 65.1 percent. According to data from the<br />

Energy Market Regulatory Agency (EPDK),<br />

the Turkish fuel distribution market is shared<br />

among 51 companies. Despite this virtually<br />

fragmented structure, however, the market<br />

is highly consolidated, with the biggest five<br />

companies controlling 78 percent of total market<br />

share whereas the remaining 46 companies<br />

are trying to pull through with the remaining<br />

22 percent. Besides its oligopolistic nature,<br />

the recent consolidation through acquisitions<br />

and the new players in the business have<br />

been efficient in the formation of this picture.<br />

The sector has seen many important acquisitions<br />

in the last two years. For example, the<br />

British-Dutch giant Shell obtained 70 percent<br />

in the Turcas Petrol, Russian lUKoIl took<br />

over Alpet and became one of the main play-<br />

Shell agrees to sell retail businesses in Finland<br />

and Sweden to major shareholder of St1<br />

Shell announced last month that it has agreed<br />

to sell the majority of its refining and marketing<br />

businesses in Finland and Sweden to Keele<br />

oy. Keele oy is the major shareholder of St1<br />

Holding oy, whose businesses include fuel<br />

retail networks in Finland, Sweden, Norway<br />

and Poland. The terms of the transaction,<br />

which are subject to regulatory approvals,<br />

include Shell’s retail business, including some<br />

340 service station in Sweden and some 225<br />

in Finland as well as its commercial road<br />

transport (CRT) in both markets. All service<br />

stations together with the CRT business will<br />

remain Shell-branded in both markets under<br />

a licensing agreement. Also included is Shell’s<br />

87 000-barrels-per-day Gothenburg Refinery,<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

ers with its large investments. The latest of<br />

these deals was made last week when oMV<br />

acquired all exclusive shares of Petrol ofisi.<br />

The EPDK data further shows that, as at the<br />

end of 2009, Petrol ofisi had a 26.7 percent<br />

share of the sector. Shell-Turcas ranked second<br />

with an 18.6 percent slice of the market pie.<br />

The only fully domestic distributor among the<br />

top five, opet, was third with 17.6 percent.<br />

These companies were followed by the BP<br />

(11.3 percent) and ToTAl (5.8 percent). It<br />

has been revealed that the sale of Petrol ofisi<br />

happened after the company's books were<br />

made better by terminating contracts with<br />

some dealers that were performing badly. The<br />

decision to decline the renewal of contracts<br />

with 700 fuel stations was made on 18th<br />

September 2010 decreasing the number of<br />

dealers to 2 600 across Turkey according to<br />

sources from the company. The unnamed<br />

source says the motive for trimming down<br />

the number of dealers was to increase the<br />

company's attractiveness for the sale. It is<br />

rumored that a deal between oMV and Petrol<br />

ofisi was made months ago but they hold back<br />

until EPDK annulled fines and other judicial<br />

problems with the company. EPDK had fined<br />

Petrol ofisi and ERK Petrol with Tl 600 million<br />

for supplying dealers without a license<br />

in 2006. The Council of State has cut down<br />

the fines to Tl 35 million lately depending<br />

on the decision taken in September 2009.<br />

Shell’s bulk fuels business in both markets<br />

and the Shell marine business in Sweden. The<br />

businesses will be sold as going concerns and<br />

Shell will receive a total cash payment of $ 640<br />

million. This announcement follows a review<br />

by Shell of its downstream businesses in the<br />

two countries. Commenting on the deal Mark<br />

Williams, Royal Dutch Shell’s Downstream<br />

Director, said: “This transaction is consistent<br />

with Shell’s Downstream strategy to reduce net<br />

refining capacity by 15 percent, to reduce our<br />

marketing footprint, and focus the portfolio<br />

on profitability and growth potential.” Not<br />

included under the scope of this deal are<br />

Shell’s aviation and liquefied petroleum gas<br />

(lPG) businesses in Finland and Sweden,<br />

whose future will be the subject of separate<br />

announcements. The upstream business<br />

exploring for natural gas in southern Sweden<br />

remains out of scope of this transaction. The<br />

transaction includes the signing of a Retail<br />

Brand license Agreement for the continued<br />

use of the Shell brand in the Retail and commercial<br />

road transport (CRT) markets in<br />

both countries.


ecession is over in estonia, says olerex<br />

Estonian petroleum retailer olerex increased<br />

market share and earned 1,2 million euros<br />

(EEK 18,9 million) net profit in 2009, the<br />

year of the deepest economic crises Estonia<br />

has ever seen. Together with the recovering<br />

Estonian economy, olerex have resumed<br />

their long-term retail network development<br />

programme. “Keeping sales volumes firm<br />

during the time of deep recession was one of<br />

our major achievements in 2009”, comments<br />

Antti Moppel, olerex Marketing Director.<br />

“While we see how Estonia is turning to<br />

growth again, we are encouraged to take<br />

on new challenging projects to strengthen<br />

our retail chain. In 2010, we have already<br />

acquired and rebranded a station in Tallinn<br />

region, and started construction of a state-of-<br />

Statoil sees tough conditions on Cee markets<br />

Norwegian filling stations operator Statoil Fuel<br />

& Retail said market conditions in Eastern<br />

Europe remained tough, as it reported rising<br />

earnings. The group, a $ 2 billion spin-off on<br />

october 22nd from Norwegian oil company<br />

Statoil, said it saw positive signs of recovery<br />

in those markets. Its third-quarter operating<br />

profit rose 16 percent to 717 million Norwegian<br />

crowns ($ 124 million). The company<br />

the-art station in South Estonia. And we will<br />

open one more station in 1Q 2011”, Moppel<br />

specified. This will increase the number of<br />

olerex stations in Estonia to 45. olerex expansion<br />

is backed by the positive outlook of the<br />

Estonian economy. Estonian Central Bank has<br />

recently raised its economic growth forecast<br />

for 2010 to 2.5 percent. Adopting the Euro<br />

in 2011 is another important factor, giving a<br />

positive impact on the economy. olerex are<br />

convinced that entering the eurozone definitely<br />

increases the reliability of the Estonian market<br />

as a whole, including the clarity of fuel<br />

market and comparability of the fuel prices<br />

with the other euro zone member states. The<br />

fuel market in Estonia is very competitive and<br />

concentrated. The Estonian fuel retail sector<br />

is dominated by five big players, together controlling<br />

90 percent of the sales volumes. Based<br />

on the research of Wood Mackenzie, for the<br />

last three years olerex has been the fastest<br />

growing fuel company in Estonia. olerex is<br />

one of the Top 5 fuel retailers in Estonia and<br />

is fully based on domestic capital.<br />

said the strengthened results were partly due<br />

to improved operational efficiency, higher<br />

seasonal sales and the integration of its JET<br />

filling stations in Sweden. “Although there<br />

are still challenging market conditions in<br />

Central and Eastern Europe, we are seeing<br />

the first positive sales growth in like-for-like<br />

non-fuel sales since the financial crisis”, Chief<br />

Executive Jacob Schram said.<br />

russia and China in refining co-operation<br />

In a sign of closer cooperation on energy needs,<br />

Russia's biggest oil producer oAo Rosneft<br />

and China National Petroleum Corp. have<br />

made plans to build a $ 5 billion oil refinery<br />

in China, though gas talks between the two<br />

countries may not actually be completed until<br />

next year. The refinery will produce 260 000<br />

LuKoIL euro 5 compliant diesel fuel in russia<br />

lUKoIl has launched its retail trade in Euro-5<br />

compliant diesel fuel in Russia. The fuel is<br />

sold under the EKTo Diesel brand at lUKoIl<br />

filling stations. Due to a high cetane number,<br />

Euro-5 compliant diesel fuel can optimize the<br />

burning of blended fuel, reduce noise and<br />

vibration, prevent corrosion, facilitate ignition<br />

and reduce specific fuel consumption. Euro<br />

5 is reportedly an environmental standard<br />

regulating the quality of fuel and the content<br />

barrels of oil a day, or 30 million metric tons<br />

of crude a year. The refinery had originally<br />

been planned for 200 000 daily barrels, but<br />

China's demand for energy has since upped<br />

the ante. Rosneft will hold 49 percent share in<br />

the company, with China National Petroleum<br />

holding 51 percent.<br />

of harmful substances in the exhaust gases<br />

of vehicles, and is an obligatory fuel-quality<br />

standard for the European Union countries.<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

bulgaria – Customs<br />

Plovdiv seize fuel<br />

NewS – euroPe<br />

bP Germany renews<br />

partnership<br />

BP Aral has extended its partnership with<br />

the bonus programme Payback, Germany’s<br />

largest loyalty scheme, until 2016. BP<br />

Aral has been a partner in the Payback<br />

loyalty card scheme since May 2006. In<br />

co-operation with its parent company BP, it<br />

has also been a Payback partner in Poland<br />

for a year now.<br />

officers with Customs Plovdiv, the mobile<br />

customs groups and the Territorial unit of<br />

the Directorate for Fight against organized<br />

Crime seized 6 336 litres of gas oil without<br />

documents for paid excise duty in a joint<br />

check-up. The illegal fuel was found at a<br />

filling station in the village of Gelemenovo,<br />

district of Pazardzhik. The company has<br />

been drawn a statement over violation under<br />

the Excise Duty and Tax Warehouse Act.<br />

Under the law such cases are punished<br />

with a property sanction worth twice the<br />

value of the due excise duty and confiscation<br />

of the illegal goods to the benefit of<br />

the state. Meanwhile, last week the joint<br />

teams seized other 3 500 litres of diesel<br />

fuel, declared to be used for heating, during<br />

a check-up on a cistern truck without<br />

GPS-device and without documents proving<br />

paid excise duty. The freight vehicle was<br />

parked close to a filling station on the road<br />

between the city of Sadovo and the village<br />

of Cheshnegirovo. The check-up was carried<br />

out over a signal of motorway police.<br />

Work on the case continues.<br />

Greek Hellenic<br />

looking for options<br />

Facing severe market contraction at home,<br />

Greece’s largest oil refining company Hellenic<br />

Petroleum is in search of growth opportunities<br />

in neighbouring Turkey. According to a<br />

statement made by Mr Tassos Giannits for<br />

Hellenic Petroleum, the company is looking<br />

into solid opportunities of cooperation in<br />

Turkey that include exporting petroleum<br />

and petrochemical products.<br />

3


NewS – euroPe<br />

totaL appoints CPo<br />

Sonia Sikorav, 53, is a graduate of École<br />

Normale Supérieure and an associate<br />

professor of Physical Sciences. She holds<br />

a PhD in Physical Chemistry and an MSM<br />

from the MIT Sloan School of Management<br />

(Sloan Fellow Program). Sonia became a<br />

member of Total’s Corporate Purchasing<br />

management team in early october and will<br />

replace Jean Bié as Senior Vice President<br />

of the Department effective January 1.<br />

Six million euros fraud<br />

ring broken in Spain<br />

The Guardia Civil has broken up a group<br />

based in Cantoria (Almería) accused of<br />

defrauding the Inland Revenue of about six<br />

million Euros through the distribution of<br />

fuel adulterated with recycled lubricating<br />

oil via transport companies and different<br />

fuel stations in Murcia, Alicante, Valencia,<br />

Cuenca, Madrid and Almeria. As reported<br />

by Police the group had their headquarters<br />

located in Cantoria, where they adulterated<br />

fuel for distribution and sale to transport<br />

companies and service stations.<br />

retailers in Malta demand<br />

more margins<br />

Petrol station owners will meet the Malta<br />

Resources Authority(MRA) over their<br />

demand for a bigger profit margin on sales.<br />

Station owners have also complained that<br />

a fund it set up jointly with Enemalta for<br />

the upgrading and maintenance of stations<br />

has been “unilaterally suspended” by the<br />

corporation and are threatening to close<br />

petrol stations on pre-advised days if no<br />

solution is found. Problems between the<br />

corporation and petrol station owners first<br />

erupted in June when they received a letter<br />

from Enemalta informing them they would<br />

raise its selling price for fuel from 1st July,<br />

after its three-year agreement with them<br />

expired at the end of June.<br />

First shop for adeg<br />

Adeg has started operating its first petrol<br />

station shop in Austria. Adeg Austria (Adeg<br />

Österreich Genossenschaft, AÖG) belongs<br />

to Rewe International AG, a subsidiary of<br />

Germany’s Rewe Group. Rewe International<br />

said in July it agreed on a complete AÖG<br />

takeover. Rewe International acquired<br />

75 percent of AÖG shares last year. The<br />

company said it hoped the increased cooperation<br />

would help Adeg store chiefs to<br />

benefit from its logistics system.<br />

altinbas talks with eni and LuKoIL about alpet<br />

Altinbas Holding is looking for European<br />

companies to buy a stake in its Turkish fuel<br />

retailing unit to help it's expansion abroad,<br />

Chairman Imam Altinbas said. The company<br />

held talks with “many” European companies,<br />

including Eni SpA and previously lUKoIl<br />

oAo, on buying a stake in Alpet AS, he said<br />

in an interview in Istanbul. “We would like to<br />

have a group as partner that will expand our<br />

fuel business in Europe”, he said, declining<br />

HSbC awards three companies in Georgia<br />

Three Georgian companies – Goodwill, Wissol<br />

Group and JSC lomisi (EFES Breweries Georgia)<br />

– have been awarded a ‘Ruban d’Honneur’<br />

prize in the penultimate stage of the European<br />

Business Awards, sponsored by HSBC. In total,<br />

100 Ruban d’Honneurs have been given to<br />

the ‘crème de la crème’ of companies across<br />

Europe. The Ruban d’Honneur is awarded to<br />

ten successful entrants in each of the award<br />

categories – The Infosys Business of the Year<br />

Award, The RSM International Entrepreneur<br />

of the Year Award, The UKTI Award for<br />

Innovation, The Award for Customer Focus,<br />

4 LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

The HSBC Growth Strategy of the Year Award,<br />

The Employer of the Year Award, The Award for<br />

Corporate Sustainability, The Environmental<br />

Awareness Award and the Chairman’s Choice<br />

Award. The Wissol Group operates the largest<br />

network of petrol stations in Georgia capturing<br />

23 percent market share and generating over<br />

110 million euros revenues. Wissol is pioneering<br />

the integration of Compressed Natural Gas on<br />

its forecourts as a cheaper fuel alternative. It<br />

is also the first to develop a chain of convenience<br />

stores, restaurants car wash and repair<br />

facilities at its stations.<br />

Kyrgyzstan to replace Pentagon contractors<br />

In a move that could complicate Washington's<br />

war effort in Afghanistan, the Central Asian<br />

nation of Kyrgyzstan wants to bar Pentagon<br />

contractors from supplying jet fuel to a U.S. air<br />

base that is critical to the Afghan campaign. In<br />

an interview, Kyrgyz President Roza otunbayeva<br />

said private companies handling supplies should<br />

be replaced by a joint venture between a Kyrgyz<br />

state company and Russia's state-controlled<br />

Gazprom Neft, a major source of jet fuel in the<br />

topaz wins Company of the Year<br />

Topaz, Ireland’s leading fuels and convenience<br />

retailer, has been crowned Irish Retail Company<br />

of the Year at the Retail Excellence Ireland<br />

Awards which were held in Ireland this month.<br />

The company beat off stiff competition from the<br />

likes of o2, Debenhams, Vodafone, the Dixon<br />

Group, Musgraves & BWG. At the same awards<br />

the company also took the coveted Best Employer<br />

Award which listed Unicare and McDonalds<br />

in the nominations. It was seen generally as a<br />

tremendous win for Topaz, fully Irish owned<br />

and managed company which only came into<br />

existence as a brand in February 2008. Frank<br />

to comment on whether talks with Eni, Italy’s<br />

largest oil company, are continuing. Altinbas<br />

may decide on an IPo should a stake sale in<br />

the fuel unit not succeed, he said. The retailer<br />

has a 2.7 percent share of the Turkish market,<br />

trailing Petrol ofisi AS, a unit of oMV AG<br />

and Dogan Sirketler Grubu Holdings AS<br />

with a 32.8 percent share, as well as a unit of<br />

Royal Dutch Shell Plc, which has 18 percent,<br />

according to the country’s energy regulator.<br />

region. Such an arrangement, otunbayeva said,<br />

would reduce corruption, increase transparency<br />

and end “the absolutely dark corner” of Pentagon<br />

contracts. She estimated that her country<br />

would collect US $ 50 million a year by cutting<br />

out middlemen. And the plan would provide<br />

Moscow with direct leverage over an American<br />

base outside the Kyrgyz capital, Bishkek, that<br />

serves as a vital logistics hub for U.S. military<br />

operations in Afghanistan.<br />

Gleeson (pictured centre of the photo), Retail<br />

Director, said it was a fantastic achievement and<br />

that the company was delighted and proud to<br />

be accredited by the REI. “We are so proud at<br />

being named overall Irish Retail Company of<br />

the Year. This means a huge amount to Topaz,<br />

as we have only been around for a couple of<br />

years. Yet this shows how far we have come in<br />

this short time. It was also very pleasing to note<br />

the judging panel was looking for evidence of a<br />

business strategy that demonstrably contributes<br />

to the Irish economy and that has always been<br />

a priority for us” he said. “We are also thrilled<br />

to have won the ‘Best Employer’ award. This<br />

is especially significant as we would not have<br />

won this award without the full support of<br />

our employees. We value our employees so<br />

highly and we are extremely grateful for their<br />

commitment, energy and dedication every day’<br />

Gleeson concluded.


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Programmes when it comes to building new or<br />

re-imaging existing petrol stations.<br />

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Sales Manager CID<br />

Alusingen-Platz 1<br />

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References:<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

NewS – euroPe<br />

5


NewS – MIDDLe eaSt, aFrICa, aSIa & SoutH aMerICa<br />

6<br />

bP to sell to tNK-bP<br />

BP has reached agreement to sell its upstream<br />

businesses and associated interests<br />

in Venezuela and Vietnam to TNK-BP for a<br />

total of $ 1.8 billion. TNK-BP, Russia's third<br />

largest oil company, is owned equally by<br />

BP and the AAR Consortium (comprising<br />

Alfa Group, Access Industries and Renova).<br />

The sales are part of BP's plan, announced<br />

in July 2010, to make divestments of up<br />

to $ 30 billion by the end of 2011 to help<br />

the company meet its financial obligations<br />

arising from the recent Gulf of Mexico<br />

oil spill. The agreement does not affect<br />

BP's other business activities in Vietnam,<br />

including a significant lubricants blending<br />

and marketing business, nor in Venezuela.<br />

exxonMobil up for<br />

sale in argentina<br />

ExxonMobil wants to sell its downstream<br />

assets in Argentina. The retailer is looking<br />

to sell about 450 petrol stations operating<br />

under the Esso brand and an oil refinery with<br />

a production capacity of 85 000 barrels per<br />

day in Campana. According to a newspaper,<br />

Brazilian state-run oil company Petrobras,<br />

Pan American Energy – in which BP PlC<br />

owns a 60 percent stake – and Argentina’s<br />

Bridas are the most likely bidders for the<br />

assets. “We do not comment on rumours<br />

or market speculation”, said Esso spokesman,<br />

Thomas Hess. The newspaper said<br />

analysts estimate the value of assets at<br />

about US $ 800 million.<br />

India oil Corp & HPCL<br />

raise fuelprice<br />

Indian oil Corp will raise retail prices of<br />

petrol by Rs 0.32 a litre, its chairman BM<br />

Bansal said, due to rising global crude oil<br />

prices. A litre of petrol at IoC's fuel stations<br />

would cost at Rs 52.91 in New Delhi<br />

nearly 2.9 percent dearer since late June.<br />

This will be the third increase in domestic<br />

retail prices of petrol since New Delhi<br />

ended government control of petrol prices<br />

in late June. oil prices are near two-year<br />

highs partly on expectations that a sluggish<br />

but sustained economic recovery in<br />

industrialised nations and rampant growth<br />

in Asia will fuel demand.<br />

Helios and Vitol in deal to buy 1 300 Shell petrol<br />

stations in 19 african countries<br />

A consortium led by Vitol and Helios Investment<br />

partners is negotiating with Royal Dutch<br />

Shell to clinch the largest private equity deal<br />

in sub-Saharan Africa. This deal, which insiders<br />

say is worth close to $ 2.4 billion, will see<br />

one of Africa’s largest and fastest emerging<br />

private equity firms, and the world’s largest<br />

independent energy trader based out of Rotterdam,<br />

create one of the continent’s largest<br />

distributors of petroleum fuel and lubricants.<br />

Africa’s corporate finance world has been<br />

watching this transaction closely, realising it<br />

could be a transformative deal because of its<br />

sheer size and complexity and also because of<br />

its geographic footprint. If it closes successfully,<br />

analysts say, it will mark the beginning of a new<br />

era in which emerging financiers and entrepreneurs<br />

in sub-Saharan Africa find themselves<br />

winning the confidence of the establishment<br />

in global financial markets. “This will be the<br />

largest deal outside of South Africa”, said a<br />

person close to the negotiation. “The deal has<br />

not yet closed, but is very near that stage.” Vitol<br />

and Helios had confirmed on 21st July that they<br />

were in exclusive negotiations with Shell oil<br />

Products Africa for the potential acquisition<br />

of equity in their downstream businesses in<br />

19 countries in Africa, subject to final negotiations<br />

and any necessary regulatory and final<br />

company approvals. Jimmy Mugerwa, Shell’s<br />

country Manager for Kenya and Sales and<br />

operations Manager for East Africa, wrote<br />

to Peter Nyoike, Permanent Secretary at the<br />

Ministry of Energy on August 3 informing<br />

him of the negotiations. Under the terms of<br />

Caltex refuels “the amazing race asia“<br />

Chevron Malaysia continues its support as<br />

main sponsor of “The Amazing Race Asia”<br />

season. Chevron Malaysia limited (“Chevron”)<br />

announced that it will take participants and<br />

viewers of “The Amazing Race Asia” for the<br />

ride of a lifetime via its sponsorship of the<br />

reality show for the fourth consecutive year.<br />

“We are excited to once again be part of the<br />

toughest race in Asia and wish the participants<br />

the very best. At Chevron and via our brand<br />

Caltex, we strongly believe in harnessing<br />

the sheer power of ‘human energy’ and this<br />

sponsorship is a demonstration of that com-<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

the proposed deal, the consortium will retain<br />

the Shell brand and products in each country.<br />

Vitol and Helios will become majority shareholders,<br />

with Shell as a minority shareholder.<br />

This deal affects the retail fuel stations, also<br />

known in industry jargon as the downstream<br />

business, in 19 countries. These countries are:<br />

Kenya, Uganda, Tanzania, Morocco, Tunisia,<br />

Egypt (excluding lubricants), Cote d’Ivoire,<br />

Burkina Faso, Ghana, Togo, Senegal, Mali,<br />

Guinea, Cape Verde, Botswana (excluding<br />

lPG), Namibia, Madagascar, Mauritius and<br />

la Reunion. Shell said its fuel, lubricants, and<br />

refining activities in South Africa, its lubricant<br />

business in Egypt, its liquefied petroleum gas<br />

businesses in South Africa and Botswana, and<br />

its exploration and production businesses, as<br />

well as its natural gas and international trading<br />

interests elsewhere “in Africa are not in the<br />

scope of this deal”. The scope of the business<br />

on sale includes 1 300 retail sites, retail sales of<br />

around 3 500 000 cubic metres, and 1 200 000<br />

cubic metres of terminal storage. There are<br />

around 2 500 employees currently employed<br />

in the various businesses in the 19 countries.<br />

Helios is known in the region for the 25 percent<br />

investment in Equity Bank that helped<br />

transform this once tiny microfinance lender<br />

into the third largest bank in the region. It was<br />

founded by Babatunde Soyoye and Tamipote<br />

lawani, two Nigerians working out of london.<br />

It counts George Soros, one of the world’s richest<br />

Hedge Fund managers, Madelaine Albright, a<br />

former American secretary of state, and Jacob<br />

Rothschild, a descendant of Europe’s leading<br />

banking family, among its investors. The Vitol<br />

Group was founded in 1966 in Rotterdam, the<br />

Netherlands. Since then the company has<br />

grown to become a major participant in world<br />

energy markets and is now the world’s largest<br />

independent energy trader. Globally, Vitol<br />

trades over 5.5 million barrels of crude oil and<br />

products per day. It has been doing business<br />

in Africa for more than 40 years.<br />

mitment”, said Jeremy oh, Country Chairman,<br />

Chevron Malaysia limited. The show drew<br />

more than 34 million viewers across Asia in<br />

the first three seasons and will once again be<br />

telecast exclusively on AXN.


australia – 7-eleven acquires 295 filling stations<br />

7-Eleven Stores has signed an agreement with<br />

Mobil oil Australia, to acquire its retail fuels<br />

business, comprising 295 company owned or<br />

leased service stations. Earlier, the Australian<br />

Competition and Consumer Commission<br />

Vietnam – Dung Quat’s oil products<br />

In response to the call by the Ministry of<br />

Industry and Trade, the eight biggest fuel<br />

importers have confirmed that they will increase<br />

the purchases of fuel products from<br />

Dung Quat oil Refinery in order to help the<br />

refinery to clear its big stocks: Petrolimex,<br />

which is now holding 60 percent of the petrol<br />

retail market share, is also considering leasing<br />

australia – No PIN? No worries mate!<br />

A new no-touch, no-PIN card payment<br />

system speeding up the shopping process<br />

is raising security concerns. An increasing<br />

number of Brisbane retailers are moving to<br />

the no-touch card system, which does not<br />

require a PIN or signature. Shoppers simply<br />

tap their debit or credit card against an<br />

Eftpos-like terminal, wait momentarily for<br />

the green light to show it has been approved<br />

had rejected an offer from oil retailer Caltex<br />

Australia, ltd. to acquire 302 filling stations<br />

of Exxon Mobil on concerns it would lead<br />

to higher prices. The acquisition will enable<br />

7-Eleven Stores to strengthen its presence in<br />

the convenience store market in Australia's<br />

eastern states and will increase its number<br />

of stores from 400 to more than 650. The<br />

sale will also enable ExxonMobil to exit its<br />

smaller-scale Australian retail operations to<br />

concentrate on opportunities further up the<br />

value chain.<br />

a depot in December in order to help clear<br />

stocks for Dung Quat oil Refinery. According<br />

to PetroVietnam, even if enterprises join<br />

forces to purchase fuel products from Dung<br />

Quat, it is estimated that 157 200 cubic<br />

metres will still remain unsold by the end<br />

of December 2010. However, the inventory<br />

level is considerably reasonable.<br />

China says its car boom is ruining air quality<br />

China's booming car sales have had a devastating<br />

effect on the environment, the national<br />

environmental watchdog has warned in its<br />

first-ever report on pollution caused by vehicle<br />

emissions. China's booming car sales have<br />

had a devastating effect on the environment,<br />

a watchdog has warned. About a third of<br />

113 cities surveyed failed national air standards<br />

last year as the number of vehicles swelled<br />

to 170 million, up 9.3 percent in a year and<br />

25 times the number on the roads in 1980,<br />

the ministry of environmental protection<br />

said. “All the problems are closely related to<br />

vehicle exhaust emissions”, said the government<br />

report, which was published this week.<br />

Vehicle exhaust emissions exceeded 51 million<br />

tonnes in 2009, including more than 40 million<br />

tonnes of carbon monoxide, nearly five<br />

million tonnes of hydrocarbons and about six<br />

million tonnes of nitrogen oxide, the report<br />

reveals. China's auto sales hit 13.64 million<br />

units in 2009, up 46 percent on-year, and are<br />

expected to rise by a further 25 percent this<br />

year to 17 million. The ministry pledged to<br />

toughen supervision and control of vehicle<br />

exhaust emissions. Projects are already under<br />

way in several cities to upgrade petrol stations,<br />

oil storage tanks and oil tankers to rein in<br />

emissions, according to the report. China's<br />

latest Five-Year Plan, for 2011 – 2015, which<br />

was adopted last month, called on car makers<br />

to focus on researching and developing new<br />

energy vehicles, such as electric cars and<br />

hybrid vehicles.<br />

(like a public transport Go Card), and leave.<br />

Visa and MasterCard have each introduced<br />

contact-free card systems, called PayWave<br />

and PayPass respectively, for both credit and<br />

debit cards and Eftpos is planning to launch<br />

its own system in July next year. The system<br />

is already widely used in North America,<br />

Europe and North Asia. Transactions in<br />

Australia are limited to $ 100.<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

NewS – MIDDLe eaSt, aFrICa & aSIa<br />

Fiji introduces<br />

self-service<br />

The Fiji Fuel Retailers Association will<br />

switch to self-service mode from this<br />

Wednesday – a switch that will see 400<br />

attendants losing their jobs. The Association<br />

says self-service will help reduce<br />

costs and improve efficiency. There have<br />

been mixed reactions from drivers on the<br />

decision to switch – with some opposing<br />

and some supporting the decision. The<br />

Consumer Council of Fiji says the decision<br />

to move to self service is unreasonable and<br />

unsubstantiated.<br />

Kuwait strategic<br />

stake in IoC<br />

Kuwait Petroleum has shown an interest<br />

in acquiring a stake in flagship refinermarketer<br />

Indianoil Corporation if the<br />

government decides to offload part of its<br />

holding through a strategic divestment,<br />

the country's oil minister Sheikh Ahmad<br />

al-Abdullah al-Sabah said. But the government<br />

is unlikely to oblige as it plans to<br />

shed 10 percent stake in the company only<br />

through a public offering since the UPA<br />

is opposed to any strategic sale of equity<br />

in state-run firms.<br />

Dubai – Fresh Plus<br />

opens new franchise<br />

Fresh Plus, part of the Emarat petrol<br />

station chain has opened a 1 500 square<br />

feet standalone convenience store at The<br />

Galleries at Downtown Jebel Ali. The<br />

outlet is the third of kind in Dubai, and<br />

complements more than 40 Fresh Plus<br />

stores found in Emarat petrol stations<br />

throughout the Emirate. Salah Ameen,<br />

Executive Director for limitless in the<br />

Middle East, said: “As more and more<br />

retailers open up at The Galleries, tenants<br />

and visitors have a growing number<br />

of facilities on site. At Fresh Plus they can<br />

do grocery shopping, buy lunch, pay phone<br />

and electricity bills, draw out cash and<br />

much more, all under one roof, underlining<br />

our commitment to convenience and<br />

at our flagship development”.<br />

7


NewS – MIDDLe eaSt, aFrICa & aSIa<br />

Vietnam monopoly?<br />

The Competition Administration Department<br />

(CAD) under the Ministry of Industry<br />

and Trade, in its report about competition<br />

in 10 business fields, pointed out that a<br />

group monopoly is controlling the domestic<br />

petroleum market. Apparently petroleum<br />

importers have been making increased<br />

profits thanks to the decreasing petrol price<br />

on the world market, however none reduce<br />

the retail price.once again, a question has<br />

been raised of why importers raise retail<br />

prices when the world prices increase but<br />

do not reduce the retail prices when the<br />

world prices decreases.<br />

Caltex australia to<br />

buy exxon's terminal<br />

Caltex Australia ltd. is planning to buy out<br />

Exxon Mobil Corp.'s interest in a fuel terminal<br />

at the port of Gladstone in Queensland<br />

state, a Caltex spokesman said. “The key<br />

drivers behind this arrangement were to<br />

realize cost and operational efficiencies for<br />

both parties”, the spokesman said. After the<br />

proposed acquisition, Caltex will continue<br />

to host Exxon Mobil's fuel terminal requirements<br />

in Gladstone, the Caltex spokesman<br />

added. While not a large transaction, the<br />

deal would mark another stage in Exxon<br />

Mobil's exit from Australian gasoline markets<br />

following the sale of its filling stations<br />

to 7-Eleven Australia in May. The stations<br />

were sold to 7-Eleven after Australia's<br />

competition regulator blocked a A $ 300<br />

million sale to Caltex, which is 50 percentowned<br />

by Chevron Corp. Market-watchers<br />

suspect that Exxon Mobil will eventually<br />

sell its Altona oil refinery in Victoria state<br />

but the company has so far indicated that<br />

it wants to keep its Australian wholesale<br />

operations. “We're not currently looking at<br />

selling the Altona refinery, but we always<br />

assess business opportunities”, an Exxon<br />

Mobil spokeswoman said in May.<br />

Shell to sell LPG<br />

business in Sri Lanka<br />

Shell has sold its lPG business in Sri lanka<br />

to the Government of Sri lanka (GoSl).<br />

GoSl will acquire Shell's shares (51 percent)<br />

in Shell Gas lanka limited and 100percent<br />

of shares in Shell Terminal lanka limited,<br />

for a total amount of US $ 63 million.<br />

the black market of stolen fuel in Pakistan<br />

over the past few months, illegal sale and<br />

purchase points of petrol and diesel have seen<br />

mushroom growth in the rural areas and outskirts<br />

of the capital. However, despite popular<br />

belief, drivers of Nato oil tankers are not the<br />

only ones involved in this lucrative business,<br />

police investigations have revealed. The Sihala<br />

and Koral area police have arrested more<br />

than 15 people for selling petrol and diesel to<br />

unauthorised dealers in the last two months.<br />

The arrested people, among others, include<br />

truck and bus drivers belonging to the army<br />

and other government agencies. Koral police<br />

also arrested five people last September for<br />

running unauthorised sale points for stolen<br />

petrol and diesel. Another three suspects were<br />

arrested from PWD Colony where they were<br />

not only storing petrol and diesel, but also<br />

selling it in the black market. The suspects<br />

told police that they were purchasing the fuel<br />

mainly from the drivers of trucks and buses<br />

of the Pakistan Atomic Energy Commission<br />

(PAEC). “The drivers of these government<br />

vehicles siphon off petrol and diesel from<br />

the fuel tanks and sell it to the unauthorised<br />

dealers at half the market rate”, said a police<br />

investigator. “I caught the driver of a PAEC bus<br />

red-handed selling diesel to Billa”, he added.<br />

Billa, or Taimoor Abbas, ran an illegal fuel<br />

depot right under the nose of the authorities<br />

near the Fauji Camp in Tarlai Khurd before<br />

he was caught. The suspects had established a<br />

collection point in Kahuta to give easy access<br />

to the PAEC drivers. From there the fuel was<br />

transferred to storage points in Islamabad<br />

and Rawalpindi. In a raid last month on an<br />

unauthorised sale point, the Koral police arrested<br />

a suspect Nasrullah from Alipur in the<br />

Fuel subsidies in the uae at 8 percent of GDP<br />

The UAE’s implicit fuel subsidies amount to<br />

7 – 8 percent of the country’s GDP, the International<br />

Monetary Fund (IMF) points out in<br />

its just released Regional Economic outlook<br />

for the Middle East and Central Asia. “Energy<br />

subsidies are prevalent across all MENAP<br />

[Middle East, North Africa and Pakistan] oil<br />

exporters”, the IMF notes. “For example, in<br />

2008, implicit fuel subsidies relative to GDP<br />

are estimated to have amounted to 15 percent<br />

in Iraq, 12 percent in Iran and Yemen, 7 – 8<br />

percent in Kuwait and the UAE, 4 – 5 percent<br />

in libya and Qatar, and 3.5 percent in<br />

oman”, the regional outlook highlighted. The<br />

IMF, which advises governments to phase out<br />

energy subsidies, also cautioned however that<br />

the phasing-out should be done in a manner<br />

that limits the impact on the weakest sections<br />

of society. “Countries that phase out energy<br />

subsidies need to be mindful of the impact of<br />

8<br />

LateSt NewS, aLterNatIVe eVeNtS, FueL jobS NewS oNLINe – www.PetroLPLaza.CoM<br />

– www.PetroLPLaza.CoM<br />

surroundings of the city. Sihala police, too,<br />

arrested a suspect and recovered two drums<br />

with hundreds of litres of diesel from his illegal<br />

depot. The suspects told the police that they<br />

were selling fuel to commuters and dealers at<br />

market rates in areas of the city where there<br />

were no filling stations. Then a few days ago,<br />

a suspect, Babar Hussain, was caught redhanded<br />

from Sihala Baghian while selling<br />

petrol from his oil company tanker to a black<br />

market dealer. on the information provided<br />

by Hussain, police also arrested Amir Shehzad<br />

and Hamid Ali Shah, the black market dealers<br />

who were selling fuel to commuters without<br />

permits for the business. “The drivers of the oil<br />

tankers get their tankers filled from Pakistan<br />

State oil (PSo) depot in Sihala, steal 30 – 40<br />

litres from every delivery which they sell to<br />

dealers like Hussain”, an investigation officer<br />

said. What started as a genuine business turned<br />

into an illegal activity after the cancellation of<br />

permits, according to police officials. “Small<br />

scale fuel sale points cropped up on lehtrar<br />

Road right up to Kotli Sattian because there<br />

were no petrol stations on this route”, said<br />

Abdur Razzaq, the SHo of Koral police station.<br />

While officials say the large number of<br />

customers makes it hard for them stop the<br />

sale of stolen fuel, police is not without blame<br />

either. Police officials, too, have claimed their<br />

‘share’ of the loot. “At least 14 police officials<br />

were booked [a few days back] for selling fuel<br />

in the black market”, said a police official, on<br />

condition of anonymity. But getting rid of these<br />

illegal fuel depots is not easy. A large number<br />

of groups are involved in the trade and, police<br />

officials feel, only a large-scale operation may<br />

wipe out the illegal activity.<br />

higher energy prices on the poor and ensure<br />

that social safety nets can effectively mitigate<br />

this impact”, the report recommended. Consumers<br />

in the UAE have already weathered<br />

two hikes in petrol prices this year (April and<br />

July), which together increased the price of<br />

petrol by 35 fils a litre. International observers<br />

including Economist Intelligence Unit (EIU)<br />

reckon that a third hike in local fuel prices<br />

is likely this year. “After two increases in the<br />

past five months, more rises in the price of<br />

petrol are in the pipeline before the end of<br />

the year”, the EIU said in a report published<br />

earlier this month. The firm added that fuel<br />

prices at petrol stations in the UAE must go<br />

up by another 47 fils / litre for local distributors<br />

to break even.The IMF has recommended that<br />

countries in the region end explicit fuel subsidy<br />

in order to reform their consumption patterns<br />

and enhance industrial efficiency.


Hotel Rey Juan Carlos,<br />

10 th – 12 th May 2011, Barcelona, Spain<br />

A business forum for oil companies and major petroleum<br />

retailers, focusing on equipment, services and<br />

retail opportunities for sites and shops.<br />

Book your place by visiting our website www.erpec.com<br />

or call +49 7721 98 300.<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM 9<br />

11


NewS – MIDDLe eaSt, aFrICa & aSIa<br />

10 LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM


All text on this page is submitted and written by suppliers. Please email product news to editor@<strong>erpecnews</strong>.com<br />

Petrom and IbM team up for 10-year data<br />

center and services agreement<br />

IBM and Petrom, the largest oil and gas producer<br />

in Southeastern Europe, have entered<br />

into a 10-year, multi-million dollar data center<br />

services agreement. IBM will take over the<br />

operation of Petrom's data center infrastructure<br />

to deliver industry-leading services to Petrom,<br />

an oil and gas exploration and production<br />

company; as well as other Romanian clients.<br />

IBM will offer a wide range of data center<br />

services, such as cloud computing, hosting,<br />

installation and co-location services, in addition<br />

to business continuity, on-site backup<br />

and disaster recovery capabilities. “This<br />

collaboration with IBM reaffirms the high<br />

standards used for building and equipping<br />

the data center in Petrom City. Through<br />

this agreement, Petrom will benefit from<br />

a market leader's expertise in data center<br />

hosting as well as cost savings from the joint<br />

use of the facility”, said Reinhard Pichler,<br />

Chief Financial officer of Petrom. The data<br />

center provides an environment to support<br />

oPw FMS introduces Fuel Control System<br />

Wireless RFID system provides highest level<br />

of fuel security and control for fleets. oPW<br />

Fuel Management Systems, part of oPW<br />

Fueling Components and one of the world’s<br />

leaders in the design and manufacture of tank<br />

gauges and automated fuel-control systems,<br />

is proud to announce the availability of its<br />

latest fuel-control system, the Petrolink<br />

Fuel Control System. Petrolink is a completely<br />

wireless system that monitors fleet<br />

vehicle I.D., mileage and other important<br />

fueling information through the use of RFID<br />

technology. Petrolink has been designed<br />

to provide the highest level of fuel security,<br />

tokheim acquires aCIS companies<br />

The Tokheim Group announced the acquisition<br />

of ACIS Czech and ACIS Slovakia, whose<br />

scope of work covers the distribution, installation<br />

and maintenance of forecourt equipment<br />

as well as the repair and construction of gas<br />

stations. ACIS Czech Republic and Slovakia,<br />

two independent companies, are long standing<br />

partners and distributors of Tokheim in<br />

their respective markets. These two companies<br />

and their management will continue to<br />

provide excellent service to their customers<br />

as part of the Tokheim Group. Martin Rybar,<br />

Managing Director of ACIS Czech Republic<br />

states: “Through this acquisition, ACIS has<br />

now become an integral part of the clear<br />

European leader in our field”. This step brings<br />

mission critical infrastructure services with<br />

advanced cooling, power, redundancy and<br />

sustainability features. It is fully powered<br />

by the power plant in Petrom City – one of<br />

the most modern in Europe – allowing it to<br />

benefit from high quality and efficient power.<br />

“This agreement will enable Petrom to reduce<br />

its data center operation costs, while enabling<br />

IBM to provide customers with a full suite<br />

of services from a robust facility in a timely<br />

and cost-effective manner”, said Mihai Tudor,<br />

Country General Manager of IBM Romania.<br />

“It further illustrates IBM's focus on capturing<br />

growth in emerging markets.”<br />

accountability and control while accurately<br />

capturing data without driver intervention,<br />

all without the need for wires, special swivels,<br />

fuel-authorization cards or time-consuming<br />

installation. The Petrolink system will<br />

not allow fuel to be dispensed unless the<br />

proper RFID tag is identified, providing<br />

superior security for fleet managers. In<br />

addition, ease of fuel reconciliation is a<br />

key benefit from the Petrolink system,<br />

which consists of four easy to use and install<br />

components, two of which are placed on<br />

the vehicle and two that are installed at the<br />

fueling station.<br />

along many advantages for both companies,<br />

their customers and employees: financial<br />

stability, a better competitiveness in front of<br />

more demanding customers, and the synergies<br />

delivered by being part of an international<br />

Group whose quality of service and innovation<br />

are the reference in the market. “Following<br />

the acquisitions of companies of the Rohé<br />

Group in Romania, Bulgaria, Serbia, latvia<br />

and lituania in November 2009, Tokheim<br />

continues to expand its direct presence in<br />

the Central & Eastern part of Europe”, said<br />

Patrick Berthon, CEo of Tokheim Group<br />

S.A.S., Czech Republic and Slovakia are two<br />

promising markets and they fit perfectly in<br />

our growth strategy.<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

ProDuCt NewS<br />

Ge acquires Dresser<br />

GE has announced that it has signed a<br />

contract to acquire Dresser Inc., a global<br />

energy infrastructure technology and service<br />

provider and parent company of gasoline<br />

dispenser manufacturer Dresser Wayne.<br />

The $ 3 billion deal is the latest in a series<br />

of acquisitions over the last 10 years that<br />

has helped grow GE's energy business<br />

and deliver record profitability. The addition<br />

of Dresser's portfolio, which includes<br />

technologies for gas engines, control and<br />

relief valves, measurement, regulation and<br />

control solutions for gas and fuel distribution,<br />

will expand GE's core energy offerings and<br />

extend its reach into adjacent offerings for<br />

its energy and industrial customers. The<br />

deal is subject to customary closing conditions<br />

and is expected to close promptly after<br />

receiving regulatory approval. Head quartered<br />

in Addison, Texas, Dresser operates in more<br />

than 100 countries, delivering compression,<br />

flow technology, measurement and<br />

distribution infrastructure and services<br />

to customers in more than 150 countries.<br />

Dresser had revenues of $ 2 billion and<br />

earnings of $ 318 million in 2009. Dresser Inc.<br />

is a leader in providing highly engineered<br />

infrastructure products for the global energy<br />

industry. leading brand names within the<br />

Dresser portfolio include Dresser Wayne<br />

retail fueling systems, Waukesha natural<br />

gas-fired engines, Masoneilan control valves,<br />

Consolidated pressure relief valves, and<br />

Roots blowers and compressors. Austin,<br />

Texas-based Dresser Wayne is one of the<br />

largest business units of Dresser Inc. and<br />

a global leader in the design, manufacture<br />

and servicing of fueling forecourt solutions.<br />

Dispensers, payment platforms, control<br />

systems, and technology from Dresser<br />

Wayne play an essential role in traditional<br />

and alternative fueling sites around the<br />

world. Fairfield, Connecticut-based GE is<br />

a diversified infrastructure, finance and<br />

media company.<br />

Lightning Science for bP<br />

BP has chosen lightning Science Group<br />

to supply lighting for its retail outlets in<br />

Europe. Ultra-efficient and long-lasting<br />

lED fixtures will replace the inefficient<br />

canopy lights now used. Zach Gibler, CEo<br />

of lightning Science Group Corporation<br />

said: “The lightning Science lED flat<br />

lowbay fixtures provided will improve both<br />

the environment and BP's bottom line by<br />

delivering up to an 80 percent energy savings<br />

over traditional lighting technology, such as<br />

HID fixtures, and will last approximately five<br />

times as long”. BP operates approximately<br />

40 000 petrol stations in Europe.<br />

11


ProDuCt NewS<br />

12<br />

New mode for iX Pay<br />

from Dresser wayne<br />

Dresser Wayne, the global innovator of<br />

fuel dispensers and technologies, is helping<br />

fuel retailers minimize the impact of<br />

payment-data security attacks with the<br />

iX Pay secure payment solution’s limited<br />

Functionality Mode (lFM).<br />

The first solution of its kind in the industry,<br />

the patent-pending lFM feature helps<br />

reduce expensive downtime resulting<br />

from Encrypted PIN Pad (EPP) tampering<br />

– a common form of financial fraud in<br />

which thieves attempt to obtain consumer<br />

debit card Personal Identification Numbers<br />

(PINs) . The Payment Card Industry (PCI)<br />

requires that approved devices immediately<br />

erase encryption keys and disable<br />

PIN-entry capabilities after a tampering<br />

event. Unlike payment solutions that disable<br />

the entire fuel dispenser, which can<br />

affect retailer’s fuel sales, lFM allows<br />

continued fueling operation, and in some<br />

configurations maintains other payment<br />

functionality, including cash, credit, fleet<br />

and loyalty transactions. “Unfortunately,<br />

financial fraud is on the rise. In addition<br />

to victimizing consumers, it can result in<br />

significant costs to businesses in terms<br />

of damage to the brand as well as fines”,<br />

Tim Weston, Dresser Wayne payment<br />

Technologies Product Manager explains.<br />

“In the case of unattended payment terminals,<br />

fuel-dispenser downtime can add<br />

to the expense. With lFM, retailers can<br />

keep their dispensers running until the<br />

tampered equipment can be serviced.”<br />

Beyond the lFM feature, the Dresser<br />

Wayne iX Pay secure payment solution<br />

offers one of the highest levels of security<br />

available to fuel retailers. It includes advanced<br />

security features such as support<br />

for multiple Triple-DES encryption keys<br />

and tamper-responsive mechanisms that<br />

help keep data secure from the moment a<br />

customer swipes a card or enters information<br />

via the keypad.<br />

The iX Pay secure payment solution with<br />

limited Functionality Mode is part of<br />

Dresser Wayne’s comprehensive approach<br />

to forecourt security. Dresser Wayne fuel<br />

dispensers help protect fuel inventories as<br />

well as financial information. They feature<br />

large bezel doors so intruders can’t reach<br />

internal components without detection,<br />

as well as separate doors for frequently<br />

accessed components. Dresser Wayne<br />

dispensers also support secure door locks<br />

that help prevent unauthorized entry, and<br />

the Xflo fuel meter features a tamperresistant<br />

design to deter fuel theft.<br />

All text on this page is submitted and written by suppliers. Please email product news to editor@<strong>erpecnews</strong>.com<br />

Gilbarco Veeder-root launches Horizon<br />

Gilbarco Veeder-Root is pleased to announce<br />

the launch of the Horizon. The Horizon is<br />

the latest innovation to be added to Gilbarco<br />

Veeder-Root’s range of dispensers. The Horizon<br />

has been engineered and constructed to<br />

offer reliability and longevity in the harshest<br />

of environments, increasing site uptime and<br />

lowering overall maintenance costs. Its innovative<br />

design and exciting features makes<br />

Horizon one of the most reliable, secure and<br />

attractive pumps in the market.Some of the<br />

key aspects include the world’s most accurate<br />

and lowest drift piston meter, the V+ meter,<br />

secure intelligent pulser, polycarbonate door,<br />

improved nozzle boot in reinforced nylon for<br />

long lasting use, and a large 1.5" lED back<br />

lit customer display. “Timeless and reliable,<br />

oil separator alarm unit news from Labkotec<br />

New levelSET S oil separator alarm unit and<br />

SolarSET for applications where mains supply is<br />

not available. Three digital probes alarm system<br />

with integrated GSM modem. The levelSET S<br />

oil separator alarm control unit was developed<br />

to meet strict regulations and demands of various<br />

environmental agencies throughout Europe.<br />

levelSET S is equipped with Fail-Safe alarm<br />

facility, giving total system monitoring of all<br />

sensor inputs. levelSET S recognises when an<br />

oil or sludge space is full, or if there is a high<br />

level condition within the separator due to a<br />

blockage. Alarm conditions can be transmitted<br />

to mobile phones or computer systems via the<br />

integrated GSM modem or internal relays can<br />

be connected to remote beacons and audible<br />

alarms. An inbuilt lED and buzzer indicate the<br />

respective alarm condition locally. The GSM<br />

version of the levelSET S can be programmed<br />

PCI approved KSt9000 from Key Innovations<br />

New from Key Innovations is a multi-media,<br />

interactive, payment terminal supporting mag<br />

stripe, chip card and contactless technologies.<br />

It has a large, bright, VGA resolution color<br />

display that delivers powerful audio-visual<br />

presentations with full motion, full screen video<br />

and high quality stereo sound.This terminal<br />

is toughened to ensure survival in the most<br />

exposed public environments and is sealed to<br />

resist the most extreme weather conditions. It<br />

is constructed to withstand regular wash down<br />

and sanitation procedures, making it ideal for<br />

use in very dirty environments or in applications<br />

requiring a very clean, sanitized environment<br />

such as food service or food consumption areas.<br />

The terminal also features a secure PINpad,<br />

an optional full insertion card reader and the<br />

latest contactless (NFC) technology. Eight<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

the Horizon is a flexible solution for your<br />

forecourt needs. We know that a dispenser<br />

is more than a 10 year investment and that<br />

is why we have ensured that every Horizon<br />

component is developed for durability and<br />

long life, saving you money over the long<br />

run. This product offers you the leading edge<br />

technology with the flexibility to suit your<br />

needs. Its attractive image also enhances<br />

your customers’ forecourt experience” says<br />

Eric Denivelle, SSE Marketing Director. The<br />

dispenser is available in both pressure and<br />

suction type versions. Backed by the support<br />

from Gilbarco Veeder-Root’s industry leading<br />

global sales, technical and service partners;<br />

the Horizon offers petroleum site owners a<br />

competitive performance solution.<br />

to alarm when the service inspection is due.<br />

The new digital technology within the sensors<br />

and the control unit significantly reduces the<br />

cabling cost. The three sensors were previously<br />

connected with six wires but now only two<br />

wires are required. labkotec´s commitment<br />

to the design of high quality alarm systems for<br />

environmental monitoring of Separators assures<br />

a long service life for many years. SolarSET for<br />

applications where mains supply is not available,<br />

is a solar powered unit for monitoring the level<br />

of liquid hydrocarbon, sludge or high level in oil<br />

separators. Alarm conditions can be transmitted<br />

to mobile phones or computer systems via<br />

GSM modem and locally with flashing beacon.<br />

labkotec will exhibit again on the Pollutec<br />

2010 from 30th November to 3rd December<br />

2010, Trade Fair in lyon in Hall 8, Stand F<br />

191. You are welcome to visit us.<br />

illuminated buttons around the display allow<br />

customers to select from a number of menudriven<br />

options. This ensures that promotional<br />

or informative content can be used to up-sell<br />

or request feedback from the customer. It<br />

also enables the customer to select content<br />

or services of specific interest or relevance<br />

creating a truly interactive experience for both<br />

the customer and the retailer. Using ‘Secure<br />

Content Builder’ software, promotional media<br />

content can be originated and assembled into a<br />

series of ‘scenes’ and ‘storyboards’. Authorized<br />

(signed) media content can then be uploaded<br />

to the terminal network and run within ‘Secure<br />

Content Manager’ the secure kernel resident<br />

in each terminal. This method of verifying and<br />

securing promotional content is unique to Key<br />

Innovations and the KST9000 terminal.


LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

13


autoMeCHaNIKa – SPeCIaL Feature<br />

14 LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM


All text on this page is submitted and written by suppliers. Please email product news to editor@<strong>erpecnews</strong>.com<br />

aGIP chooses SeCu MultiPIDs from Secu-tech<br />

After a successful evaluation period, Agip<br />

Austria decided to implement Secu-Tech’s<br />

MultiPID System at the oil company’s two<br />

depots in Austria. At both sites MultiTank<br />

were equipped with MultiPID (multiple product<br />

identifiers) and accessories such as PID-<br />

testing and programming devices. Multi-<br />

TANK is a comprehensive solution for the<br />

identification of products from the storage<br />

depot and the tank truck to the petrol station.<br />

The quality security system prevents product<br />

mix: a safe chain with no leak. “An increasing<br />

number of European oil Companies implement<br />

our systems, which cover depot loading<br />

racks, tanker-trucks and petrol stations, in<br />

their petrol logistics chain. Following the<br />

first installation at the oMV storage depot<br />

in Vienna lobau, Austria 18 month ago, our<br />

system is used by oil Companies in Germany<br />

and Benelux and we expect further projects<br />

from worldwide to follow soon. What our<br />

customers appreciate is the high level of<br />

security, efficiency and user-friendliness as<br />

well as the high degree of compatibility to<br />

most systems in the market” said Dagmar<br />

Höckner, Managing Director of Secu-Tech.<br />

The installation started last week, being<br />

carried out by Tanktechnik Süd and KSW.<br />

washtec and Flügger tie up Norway<br />

WashTec AG, the leading supplier of solutions<br />

for the carwash business and Flügger Group,<br />

the Nordic producer of high quality paints,<br />

Fairbanks reassure regulators in the uK<br />

Fairbanks recently hosted an open day for<br />

60 Petroleum officers, Trading Standards<br />

officers and Fire Authority personnel at<br />

its offices in lancashire, supported by the<br />

Environment Agency presenting the latest<br />

guidance and legislation on ground water<br />

pollution prevention. Bob Conlin, Managing<br />

Director of Fairbanks said, “over 55 percent<br />

of UK forecourts use a 3rd party wetstock<br />

torex PoS and back office solutions for MrH<br />

Torex Retail Holdings ltd announces<br />

that MRH (GB) lTD, has implemented<br />

Torex Iridium PoS and Torex Prism<br />

SQl for Back office across 220 of its<br />

sites. The automation of manual tasks will<br />

dramatically reduce the amount of reporting<br />

administration across the organisation,<br />

bever Innovation award for Luci series<br />

Bever Innovations has won the oSD Innovation<br />

Award 2010 for the successful development<br />

and market introduction of its luci<br />

Series lED under canopy illumination. The<br />

oSD (regional entrepreneur group organizing<br />

the competition) Innovation Award is<br />

awarded yearly to a company that shows the<br />

wallpapers and Adekema-branded carwash<br />

chemicals, agreed on a strategic cooperation<br />

for the Nordic carwash chemicals market.<br />

WashTec is acquiring the major assets of<br />

the sales and product development units of<br />

Adekema and exclusive rights for distribution<br />

of Adekema’s carwash chemicals effective as<br />

of 1st January 2011. In addition, the parties<br />

have agreed on a 5-year strategic cooperation<br />

in order to leverage the synergies arising from<br />

the chemicals- and production know-how.<br />

management service and that regulators<br />

are visiting forecourts that do not have<br />

adequate systems to fully protect the site.<br />

We want to reassure regulators that there<br />

are cost-effective systems available and<br />

that we can all work together to ensure we<br />

set a minimum standard to help reduce the<br />

impact of leak incidents that are polluting<br />

our environment each year”.<br />

increasing the amount of time operators<br />

can spend with their customers generating<br />

sales. Head office can now also look at<br />

customer spending trends across each site<br />

and recommend seasonal variations and<br />

special offers to help boost sales across<br />

the convenience business.<br />

most innovation in a product, process and/or<br />

market strategy. The nominees are evaluated<br />

by a jury of proven entrepreneurs and must<br />

defend their innovation in the final in front<br />

of a live audience. Both the public and the<br />

professional jury chose the luci Series as The<br />

Innovation of 2010.<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

Integrated promotion<br />

Management<br />

system from S&b<br />

ProDuCt NewS<br />

Today, it’s just a few clicks with your computer<br />

mouse, whereas previously operators<br />

had to produce, distribute and put up posters,<br />

pump toppers and other advertising<br />

materials, which then had to be removed<br />

after the promotion campaign was over!<br />

The integrated promotion management of<br />

the Scheidt & Bachmann promotion suite<br />

is a convenient way to avoid all these steps.<br />

A reduced workload, substantial cost savings<br />

and reduced paper waste, are just some of<br />

the advantages. With the promotion suite,<br />

Scheidt & Bachmann offers an integrated<br />

solution which permits the central planning<br />

and management of promotions,<br />

and an automated and time-controlled<br />

distribution to all relevant petrol stations.<br />

Within the system, an oil company creates<br />

an advertising campaign which includes<br />

one or more illustrated play lists and their<br />

timed order. At the set time, the network<br />

management system, NMS, deploys these<br />

play lists automatically to all chosen petrol<br />

stations, where the promotion content is<br />

displayed automatically at all the connected<br />

promotion displays. From the dispenser to<br />

the PoS, Scheidt & Bachmann promotion<br />

displays welcome the customer while filling<br />

up, and say goodbye after paying at<br />

the PoS. on all the displays, customers<br />

have the advertising messages in focus.<br />

This way, it is possible to make a special offer<br />

at the dispenser and divert the customer’s<br />

attention to the shop’s products. Advertising<br />

at the PoS supports and encourages<br />

impulse buying. The system is extremely<br />

flexible, allowing different content to be<br />

played at different groups of stations or at<br />

stations individually. Besides the central<br />

planning of promotions, the Scheidt &<br />

Bachmann solution also permits the local<br />

deployment of content.<br />

15


Feature – eND oF Year reVIew<br />

End of year review, erpec 2011, a bit of the<br />

Barcelona here we come.<br />

The famous Sagrada<br />

Família Cathedral.<br />

Automechanika 2010 saw us taking a stand for the first time. Sandra and Aljona working hard as usual.<br />

Where did the time go? ... is what everyone<br />

says when you remind them that Christmas<br />

is only a few weeks away and a brand new<br />

year is just around the corner. But it's a<br />

fair question for many people, particularly<br />

in this industry, who have been so busy<br />

dashing around all parts of the world, they<br />

can barely remember the last time they<br />

stopped, which was probably when they<br />

opened their presents during the festive<br />

season of 2009. Actually, the difference<br />

between this year and next is likely to be<br />

very little for most companies, although<br />

undoubtedly there will be some in 12<br />

months time, which will be celebrating<br />

their best year ever. There will also be<br />

those which will belong to someone else<br />

and sadly those, which will be no longer<br />

with us.<br />

The ‘movers and shakers’ of 2010 have been<br />

confined to the major pump manufacturers<br />

which now seem to have split the service<br />

networks of Europe between them, through<br />

a series of working arrangements and service<br />

and maintenance company acquisitions.<br />

Franklin Fueling Systems made probably<br />

the most unexpected purchase of the year<br />

by bringing PetroTechnik into its growing<br />

portfolio last month, which probably<br />

means farewell to one of the industry's<br />

most colourful characters John Boudry,<br />

its founder and former CEo. He will be<br />

missed by many.<br />

on the retail side, whilst the biofuels argument<br />

rages on, Shell, Exxon, ToTAl and BP<br />

have demonstrated the need to rationalise<br />

their networks on more than one occasion<br />

by selling off various parts of their global<br />

networks and surprisingly in some cases,<br />

even buying some. Diversely, the Russian<br />

arms of lUKoIl and Gazprom have extended<br />

their reach further across Europe<br />

in their quest for an increased share of the<br />

world’s energy market. How long will it be<br />

before we see a lUKoIl site in the UK, is<br />

a question I have often asked myself this<br />

year. In Asia the Indian subsidies on the<br />

price of fuel drama, will be the one thing<br />

I will remember from 2010 and how, after<br />

closing over 1 000 sites, Reliance have now<br />

decided to re-open them now the subsidies<br />

from the Indian government have been withdrawn.<br />

Happy days! Below are a few of the<br />

headlines from 2010 which caught my eye.<br />

News: january – june<br />

Tokheim and Dresser Wayne acquire<br />

Rohé in central and Eastern Europe<br />

Gilbarco Veeder-Root acquires the Petrol<br />

Pump Division of l&T in India<br />

BP sells Greek network to Hellenic<br />

Petroleum<br />

16<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

Me, sitting outside<br />

amongst<br />

the exhibitors<br />

boxes at<br />

NACS / PEI in<br />

America. Its<br />

certainly more<br />

peaceful than<br />

being inside.<br />

The Hotel Rey Juan Carlos, Barcelona,<br />

venue for erpec 11.<br />

Petrobras buys Chevron Chile<br />

50 oil tankers sitting off the coast of the<br />

UK waiting for the price of oil to rise<br />

Manx Petroleum takes over Shell sites<br />

in The Isle of Man<br />

Petrol soars to 1.40 euro's a litre in some<br />

European countries<br />

ExxonMobil sells Austrian retail network<br />

to ENI<br />

New Zealand network sold off by Shell<br />

KPS gains German approval for plastic<br />

piping<br />

Shell declares its intention to exit 35 percent<br />

of its retail outlets worldwide<br />

Gilbarco Veeder-Root acquires FAFNIR<br />

Caltex drops plans to buy ExxonMobil in<br />

South America after lengthy watchdog<br />

investigation<br />

ToTAl and ERG set up joint venture<br />

in Italy<br />

Shell puts Gibraltar up for sale<br />

News: july – November<br />

lybia bids $ 2 billion for Shell assets in<br />

Africa<br />

Petro China builds 345 petrol stations<br />

in 6 months<br />

Shell exits Greek retail arena<br />

ElAFlEX acquires stake in Australian<br />

company lG Equipment


picture text ????????<br />

Feature – eND oF Year reVIew<br />

past, exhibitions and a happy new year<br />

Texaco to sell off European assets<br />

Reliance resumes retailing in India<br />

Tokheim signs working agreement with<br />

Fairbanks<br />

Dresser Wayne forms distribution agreement<br />

in Germany with SAXS-KTT<br />

ToTAl may sell 800 sites in UK<br />

Franklin Fueling acquires PetroTechnik<br />

GE acquires Dresser<br />

The one big difference between this year<br />

and next is of course, 2011 is an erpec year,<br />

taking place for the 8th time next May in<br />

Barcelona, one of the most cosmopolitan<br />

cities in Europe, home to the famous<br />

architect Gaudí, his famously unfinished<br />

Sagrada Família cathedral and the current<br />

European football champions, FC Barcelona.<br />

As Spain’s second largest city, after Madrid,<br />

there are roughly 5 million inhabitants in<br />

and around the Barcelona area, a number<br />

matched interestingly enough by the number<br />

of tourists who visit the city every year. As<br />

the 4th most visited European destination<br />

after london, Paris and Rome, Barcelona is<br />

a fast growing financial centre and a major<br />

economic hub in today's Global business<br />

community.<br />

It is fitting that erpec should be staged in<br />

Barcelona next year, still growing itself in stature<br />

and importance, although after 14 years it<br />

By Nick Needs<br />

Another picture taken at NACS / PEI. A very colourful view of the aisles which were buzzing.<br />

is readily<br />

acknowledged<br />

now as one of the<br />

industry's ‘must do's’ when it comes along<br />

every 2 years. As I write this article most of<br />

the industry's leading supplier companies<br />

have signed up already for an event which<br />

they have come to trust over the years and<br />

one they even look forward to, although I<br />

can understand that to a non-attendee the<br />

thought of 1 500 meetings over 3 days might<br />

seem challenging, to say the least. over the<br />

last decade or so the oil companies, retailers,<br />

PMC's, maintenance and service companies,<br />

have shared in the success that erpec has<br />

enjoyed, bringing with it better networking<br />

in the industry and a greater understanding<br />

of what individuals can bring to any meeting<br />

table, wherever it may be.<br />

But it was not always like that. Neither Shell,<br />

ExxonMobil, BP or ToTAl attended any of<br />

the first three erpec meetings held in Cyprus,<br />

Spain and France respectively. Today they<br />

may each send technical and procurement<br />

teams, taking full advantage of being able<br />

to see as many suppliers as they can whilst<br />

remaining in one place, but it was not until<br />

the event came to Malta in 2001 that any<br />

of the MoC's attended erpec for the first<br />

time. Since that point, I am pleased to say,<br />

the event has never looked back. In 2009,<br />

at the very popular lago Maggiore<br />

location in Italy, delegates took part<br />

in what was erpec's largest gathering so<br />

far. New retail companies attending from<br />

Mol, INA, Topaz, Tamoil, Petrogas, Murco,<br />

Rompetrol and olerex, along with 15 new<br />

supplier companies, boosted the numbers<br />

to a total of 237 delegates. A long way from<br />

the first event in 1997, which attracted a<br />

group of just over 120.<br />

Having been involved in the exhibitions<br />

market for several years, prior to developing<br />

the meetings based forum event, it has<br />

always been of particular interest to me to<br />

see how the concept sits alongside trade<br />

fairs. In this industry we still have few exhibitions<br />

remaining including PEI at NACS<br />

in America every year and Auto mechanika<br />

in Germany every two years. The meeting<br />

concept encourages personal relationships<br />

and an exhibition promotes product, is the<br />

simple way I saw it back in the early days.<br />

But as money becomes tighter and stretching<br />

available funds almost becomes an art<br />

form, the return on investment has become<br />

a key factor in companies wanting to do our<br />

style of event, rather than afford the luxury<br />

of being able to generally show themselves<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM 17


Feature – eND oF Year reVIew<br />

The conference for erpec 11 is to be announced, but the theme will be design, build and the environment.<br />

Bodo Schwarz and the girls<br />

already planning for Barcelona.<br />

off, to whoever turns up at<br />

a trade fair. Having staged<br />

similar events to erpec now<br />

in 10 different sectors, it is important to<br />

note that in virtually every case the effect<br />

is exactly the same and this trend, unsurprisingly,<br />

is not restricted just to the retail<br />

petroleum marketplace.<br />

It is worth mentioning, I feel, the one place<br />

where the exhibition still triumphs over the<br />

meeting forum in some cases. The United<br />

States of America, built on the back of exhibitions<br />

in every state, some dating back<br />

to over 100 years ago, still wants to shake<br />

hands in front of the product that it has<br />

been proud to produce. We were reasonably<br />

successful with erpec Americas in<br />

1999 and 2000 until the South American<br />

market collapsed in 2001, but still we were<br />

very much overshadowed by the PEI's annual<br />

exhibition Convex. I have come to<br />

recognise now that we in Europe are very<br />

different in the way we market ourselves<br />

to our brothers across the pond, especially<br />

with a view to exhibitions. In Europe, our<br />

spend per square metre is very often much<br />

greater than the spend for a similar facility<br />

in the US. Raised platforms, wall to wall<br />

carpets and sophisticated lighting systems<br />

are accepted as the norm in Europe, but<br />

not so in the States. The need to get the<br />

A wonderful view of Barcelona, with the sea in the background.<br />

company on a booth, for an affordable price<br />

and focus on the product instead of the<br />

cosmetics has always been the way and to<br />

me it has to be the right way. It may be oK<br />

in the good times to add a little glitter, but<br />

when the trading climate changes for the<br />

worse, many exhibitors in Europe face the<br />

humiliation of downsizing their stand to save<br />

money or even worse, not attending exhibitions<br />

at all. The general rule in America is<br />

a realistic investment for a realistic return<br />

and I know many companies over there<br />

which have not changed their stand size<br />

in 10 years. I remember talking to one PEI<br />

exhibitor a few years ago who told me that<br />

the US was built on Pole & Drape. I actually<br />

had no idea what he was talking about<br />

but then I looked around the exhibition<br />

and saw exactly that. Maybe 50 percent of<br />

the booths were using just that, assembled<br />

poles dressed in a simple material, drape<br />

as they call it.<br />

Anyway, looking at next year, Barcelona is<br />

perfect choice for erpec as it is easy to get<br />

there for all European travellers and once<br />

you arrive, you'll find only a 12 minute<br />

taxi ride to the Hotel Rey Juan Carlos, the<br />

chosen venue, located in its own tropical<br />

18 LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

For those who have never been, a typical<br />

meeting room scene at erpec.<br />

gardens towards the centre of the city.<br />

What could be simpler than that! Invites to<br />

retailers will be going out shortly but if you<br />

represent the retail sector in procurement,<br />

engineering or the building of petrol stations<br />

in Europe or further afield and you would<br />

like to attend erpec 11, please contact us at<br />

Mclean Events and we will be pleased to<br />

register you. For oil companies, Retailers<br />

and PMC's accommodation and flights in<br />

most cases are funded through the event.<br />

For contact details or for further information<br />

please visit www.erpec.com or call +49<br />

7721 98 30 0<br />

Happy Christmas from (left to right) Ramona, Patricia,<br />

Steffi and Sandra at com-a-tec<br />

Have a great Christmas and a Happy New<br />

Year from all of us at erpec, <strong>erpecnews</strong>,<br />

PetrolPlaza, Mclean Events and com-a-tec<br />

and we look forward to sharing a fantastic<br />

year with you in 2011.


Feature<br />

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– www.PetroLPLaza.CoM<br />

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20 LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM


Mayor Annise Parker plans to shut down<br />

two-thirds of the city's 99 fueling stations, a<br />

cost-cutting measure intended to reduce the<br />

city's potential liability for leaking contaminants<br />

While the closures will save the city in the<br />

long run, the process of removing underground<br />

fuel storage tanks can be expensive. The price<br />

skyrockets if underground tanks are found<br />

to be leaking fuel or oil, requiring expensive<br />

remediation to dispose of contaminated soil<br />

to safeguard surrounding neighborhoods. In<br />

some cases, monitoring wells have to be drilled<br />

to make sure the leaking fuel products have<br />

not contaminated the groundwater under<br />

the sites. In the last three years, the city has<br />

paid private contractors US $ 5.8 million to<br />

replace underground storage tanks at city<br />

fire and police stations, public works facilities<br />

and parks. A number of the sites where<br />

tanks had leaked had to undergo extensive<br />

soil removal and other remediation efforts. For<br />

example, in February the city had to increase<br />

a US $ 323 375 tank replacement contract to<br />

haul off 200 tons of soil and dispose of thousands<br />

of gallons of contaminated fuel at its<br />

Northwest Vehicle Maintenance Facility, in<br />

the 1200 block of Judiway. last December,<br />

the city paid US $ 840 000 to replace six older<br />

fuel tanks at Wheeler Park and install three<br />

new ones. The cost grew when a larger amount<br />

of contaminated soil and fuel than expected<br />

was discovered in the bottom of one tank pit,<br />

records show. “We have dozens and dozens<br />

of fuel storage facilities”, Parker said recently.<br />

PDQ Manufacturing, Inc., manufacturer of<br />

touch-free vehicle wash systems, has appointed<br />

Autowash Systems, Inc., as a new distributor<br />

serving the central Minnesota market. Based<br />

Gasoline stations are upgrading their diesel<br />

fuel to comply with the new EPA standards<br />

In three months, all U.S. gasoline stations<br />

must sell Ultra low Sulfur Diesel (UlSD) fuel,<br />

which has a maximum of 15 parts per million<br />

of sulfur. This fuel will replace lower Sulfur<br />

Diesel (lSD), which has up to 500 parts per<br />

million of sulfur. The change to UlSD begins<br />

USA News<br />

Houston Mayor closes city gas stations<br />

“We want to have a certain number of them for<br />

strategic purposes – for emergency vehicles and<br />

post-hurricane, for example – but, for the most<br />

part, they are a liability issue and we end up<br />

with fuel inventory that just sits there. And in<br />

Houston, you're not very far from a gas station.”<br />

Parker has identified 55 city fueling stations she<br />

intends to shut down immediately. Eventually,<br />

the number of stations may be trimmed to as<br />

few as 30, aides confirmed. The city plans to<br />

retain fueling stations in locations that are distributed<br />

around the city to make it convenient<br />

for city vehicles to gas up. Councilman Steve<br />

Costello, a civil engineer, backs Parker's plan<br />

and envisions some of the fueling sites being<br />

sold to bolster city finances. “Anytime we can<br />

consolidate resources and make better use of<br />

our fueling stations, I think that's a great idea”,<br />

Costello said. “If that means closing down some<br />

of these stations and having excess property<br />

we can sell, that's even better to help us bridge<br />

some of the budget gaps we have.” Reducing<br />

the number of fuel stations is one part of an<br />

ambitious effort under way by Parker to balance<br />

the budget by shaving US $ 22 million from fleet<br />

operation costs this year and next, including<br />

a cut in the number of municipal employees<br />

with take-home vehicles and consolidation of<br />

city vehicle garages. Parker is searching for a<br />

director to head a new city fleet management<br />

office, and is planning to ask the City Council<br />

to approve the hiring of CST Fleet Services,<br />

a North Carolina consulting firm known for<br />

reducing fleet operation costs.<br />

PDQ appoints new distributor for Minnesota<br />

in New Prague, MN, Autowash Systems, Inc.,<br />

will distribute and service PDQ’s laserWash ®<br />

and Tandem ® RiteTouch in-bay automatic<br />

vehicle wash systems.<br />

uSa has 3 months to comply with ePa standards<br />

December 1 due to new regulations by the U.S.<br />

Environmental Protection Agency taking effect.<br />

The agency lowered sulfur levels in diesel to<br />

improve air quality. Diesel engines in 2007<br />

model year or higher need UlSD fuel to drive<br />

correctly. Civil penalties of up to US $ 32 500<br />

daily for stations not complying with UlSD<br />

fuel standards could be assessed by the EPA.<br />

FeatureD StorY – buNCeFIeLD<br />

Cumberland Farms<br />

buys exxonMobil sites<br />

Cumberland Farms has bought 75 of Exxon-<br />

Mobil’s locations and contractual interests,<br />

alongside a petroleum distribution fleet. The<br />

retailer has also launched pre-pay debit cards<br />

in its New England, mid-Atlantic and Florida<br />

stores. The stations, located in Suffolk and<br />

Nassau Counties on long Island, NY will<br />

remain Mobil-branded, and will be a combination<br />

of company-operated and dealer-operated.<br />

Gas City files for<br />

bankruptcy in Chicago<br />

Gas City, an independent chain of fuel stations<br />

and convenience stores, with operations<br />

in Indiana, Illinois, Florida and Arizona,<br />

filed for Chapter 11 in a bankruptcy court in<br />

Chicago this week. The Frankfurt, Illinois,<br />

company listed assets up to US $ 100 million<br />

and liabilities ranging from US $ 100 to<br />

US $ 500 million. The family owned company<br />

was founded in 1966 by William McEnery,<br />

with its inaugural store opening in Chicago.<br />

The chain has since grown to operate over 50<br />

gas stations. Gas City's largest creditor was<br />

Illinois-based Centier Bank, which is owed<br />

US $ 19.5 million.other creditors listed were<br />

lending companies, including old Second<br />

National Bank, Standard Bank, and Integra<br />

Bank. The creditors are owed a collective<br />

US $ 100 million, according to the filing.<br />

Another major creditor listed is Illinois state,<br />

which is reportedly owed US $ 1.6 million in<br />

unpaid fuel taxes. The filing did not specify<br />

whether the bankruptcy organization affects<br />

The Creamery, a chain of ice cream shops<br />

owned and operated by the McEnery family.<br />

LateSt NewS, LateSt eVeNtS, uSa NewS jobS – oNLINe www.PetroLPLaza.CoM – www.PetroLPLaza.CoM<br />

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XXX NewS<br />

22<br />

uSa – bP to try electric<br />

vehicle chargers<br />

Fuel company BP is to install quick-charging<br />

stations for electric vehicles at 45 of its gas<br />

stations in the western United States and<br />

Tennessee. BP said the first systems should<br />

be available as early as March 2011. The highpower<br />

Blink DC Fast Charger is capable of<br />

providing a full charge in less than 30 minutes<br />

according to its manufacturer. The technology<br />

provides customers with a touch-screen<br />

interface and payment options, as well as a<br />

smart phone app that will alert EV drivers to<br />

charging point locations and their vehicle’s<br />

charging status.<br />

advanced biofuel for<br />

Ferrari<br />

Shell announced that it has blended a second<br />

advanced biofuel into fuel supplied to Scuderia<br />

Ferrari for the last three races of the 2010<br />

Formula one championship. Scuderia Ferrari<br />

will use a fuel containing ‘‘biogasoline’’,<br />

a biofuel converted directly from plant sugars.<br />

The ‘‘biogasoline” has been produced by Shell’s<br />

technology partner Virent at its facility in<br />

Madison Wisconsin, USA.<br />

Cosan and Shell finalize<br />

$ 21 billion deal<br />

Cosan SA, Brazil's largest sugar and ethanol<br />

company in terms of revenue, has finalized<br />

terms with Royal Dutch Shell PlC to create<br />

a renewable-fuel giant for the domestic<br />

market that will generate some $ 21 billion<br />

in annual revenues. The deal is part of an<br />

ongoing trend of consolidation in Brazil's<br />

sugar and ethanol sector, with many international<br />

players investing heavily and<br />

bringing professionalism to the sector. The<br />

two companies aim to produce more than<br />

two billion litres of ethanol per year, which<br />

would make it one of the world's largest<br />

producers of the fuel.<br />

ALTERNATIVEFUeL News<br />

Leading countries in alternative car fuel technology<br />

Sweden is currently one of Europe’s highest<br />

users of bio-fuels and it has an infrastructure<br />

to match. Norway is not far behind its<br />

neighbour when it comes to promoting green<br />

motoring. It has recently begun a trial of<br />

hydrogen-powered vehicles. los Angeles is<br />

another major player in the green motoring<br />

stakes. The city’s municipal fleet includes<br />

more than 4 000 alternative-fuel vehicles – a<br />

figure targeted to rise by 15 percent per year.<br />

Japan has long been a breeding ground for<br />

uS – truck stops, going green<br />

More than 500 truck stops across the country,<br />

including the Central Valley, will offer<br />

natural gas filling stations for trucks thanks<br />

to a deal announced between Clean Energy<br />

Fuels Corp. of Seal Beach and Pilot Travel<br />

Audi has joined hands with E.oN Stadtwerke<br />

München as well as the Technical University of<br />

Munich in order to start testing its A1 e-Trons<br />

from next year. Under this agreement, utility<br />

companies would set up 100 ‘electric’ filling<br />

The British government has been urged to<br />

learn from Germany and deliver hydrogen<br />

refuelling infrastructure where 1.4 billion euros<br />

has been earmarked for initiatives designed<br />

to prepare the market for the wider rollout<br />

of fuel cell-powered vehicles. Hydrogen fuel<br />

cell vehicles may have been dismissed by the<br />

media as the forgotten child of green transport,<br />

but industry insiders insisted that UK<br />

drivers could yet be filling up with hydrogen<br />

green technology. It was the place where<br />

Toyota first sold its hybrid Prius back in 1997<br />

and is widely regarded as a world leader in the<br />

development of hydrogen fuel-cell vehicles.<br />

uK – Fuel cell cars near starting grid<br />

In Budapest, regional electricity utilities Elmu<br />

Zrt. and Emasz Zrt., both majority-owned by<br />

Germany’s RWE AG, opened Hungary’s first<br />

charging station for electric vehicles. RWE,<br />

with the help of a local partner, launched a<br />

similar outlet in Warsaw last year. In the town<br />

of Zalaegerszeg in southwestern Hungary,<br />

wastewater treatment firm Zalaviz opened a<br />

bio-methane filling station, the first in Central<br />

Centers llC of Knoxville, Tenn., which<br />

runs Flying J truck stops. Clean Energy<br />

will build, own and operate public access,<br />

compressed and liquefied natural gas (CNG/<br />

lNG) fueling facilities.<br />

Germany – audi’s start testing electric cars<br />

stations across Munich. The electric motor<br />

would cover 50 kilometres on electric power<br />

and once the lithium batteries run out, the internal<br />

combustion engine would recharge them.<br />

Audi expects Co 2 emissions to be 72 gm/mile.<br />

at petrol stations across the country within<br />

the next five years.<br />

Hungary expands ecologically friendly outlets<br />

LateSt aLterNatIVe FueL NewS – www.PetroLPLaza.CoM<br />

and Eastern Europe. The firm will use the gas<br />

made from organic sources to propel its own<br />

vehicles, and in the future the town’s buses<br />

may also use the fuel. These two pioneers join<br />

Hungary’s 14 bio-ethanol filling stations. The<br />

network of stations offering unconventional<br />

energy is tiny compared to that of gasoline<br />

stations, as is the number of vehicles that<br />

can use such fuel.


www.air-serv.eu<br />

www.alucobond.com<br />

www.aspentech.com<br />

www.atosworldline.com<br />

www.belugacorporation.com<br />

www.bennettpump.com<br />

www.bennett-sauser.ch<br />

www.beverinnovations.com<br />

www.brugg.de<br />

www.ceccato.it<br />

www.dresserwayne.com<br />

www.plxpipe.com<br />

www.eurotank.eu.com<br />

TM<br />

www.fafnir.com<br />

www.franklinfueling.com<br />

www.gilbarco.eu<br />

www.hectronic.com<br />

www.iisltd.com<br />

www.istobal.com<br />

www.kaercher.com<br />

www.kpsystem.com<br />

www.kubald.com<br />

www.leightonobrien.com<br />

www.mepsan.com.tr<br />

www.mueller-offenburg.de<br />

www.nupigeco.com<br />

LateSt NewS, eVeNtS, jobS oNLINe – www.PetroLPLaza.CoM<br />

webSIteS aND LoGoS – SuPPortING erPeCNewS<br />

www.ono-oil.com<br />

www.opw-fce.com<br />

www.petrotec.eu<br />

www.planova.com<br />

www.psdcodax.com<br />

www.ruudlighting.net & www.ruudled.net<br />

www.scheidt-bachmann.com<br />

www.secu-tech.at<br />

www.sloanled.com<br />

www.stc-norway.com<br />

www.tammerneon.com<br />

www.tanknology.com<br />

www.tokheim.com<br />

www.washtec.de<br />

If you have not yet sent us your logo and website address, please do so for the next issue by mailing editor@<strong>erpecnews</strong>.com<br />

23

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