ChevronTexaco exits Dubai fuel retail business

ChevronTexaco has exited Dubai’s fuel retail business after selling its Caltex subsidiary’s 40% stake in EPPCO back to ENOC.

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By  David Ingham Published  May 26, 2005

ChevronTexaco has exited Dubai’s fuel retail business after selling its Caltex subsidiary’s 40% stake in the Emirates Petroleum Products Company (EPPCO) back to Emirates National Oil Company (ENOC.) As part of the agreement, Caltex lubricants will continue to be sold through EPPCO service stations. ChevronTexaco says the move out of retail reflects a desire to refocus on its three core brands — Chevron, Texaco, and Caltex. Caltex will continue to develop its aviation, lubricants and storage businesses in the Middle East through two existing joint ventures with ENOC — EPPCO Projects Co. and EPPCO International Limited. “This agreement is part of ChevronTexaco’s ongoing commitment to concentrate our resources and capital to improve our competitive position in strategic markets,” said Shariq Yosufzai, president of global marketing for ChevronTexaco. “We are proud of what we have done together with ENOC to build a strong retail business run by a national workforce. We believe ENOC can build on this foundation to grow further, and ChevronTexaco can re-deploy its resources elsewhere.” Hussain Sultan, ENOC’s group chief executive and board member, added that the transaction is aimed at further streamlining ENOC’s operations and brand equity in petroleum retailing, although he stressed that: “The group’s long and highly successful relationship with Caltex will still continue across some areas.” Following the deal with ChevronTexaco, the EPPCO brand is to be phased out over time. “In the long run, the aim will be to re-image all EPPCO service stations to the ENOC brand,” said Sultan. “This means the eventual phasing out of the vibrant red, yellow and white EPPCO brand, which initially raised the benchmark within UAE petroleum retailing, but ENOC is committed to carry on and enhance the service reputation and customer offering for which EPPCO is recognised.”

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