Pw issue 2 2014 digital by Derek Owens

Issue 2 2014 WWW. PETR OLWORLD .COM

WWW. PETR OLWORLD .COM

EXCLUSIVES

Puma Energy A Rising Giant

INFORMING AND SERVING THE FUEL RETAIL INDUSTRY GLOBALLY

Extended Coverage

Country Profile: Germany Changes in the Retail Market

INFORMING AND SERVING THE FUEL INDUSTRY GLOBALLY

Issue 2 2014

PETROLWORLD

002

003

+ CONTENTS

SECTION 1: FEATURES 04

WORLD VIEW Key global stories from around the world.

COMPANY PROFILE: PUMA ENERGY Following an interview with key management figures in Geneva, PetrolWorld profiles a rising downstream giant.

COMPANY PROFILE: Puma Energy

Increased focus on competition has led to greater transparency in the german fuel retail market.

NEW LOOK PETROLWORLD Exciting new developments, including a new website and special subscription deals.

GETTING THE MESSAGE - PUMP MEDIA Digital signage at the fuel pump allows retailers to connect with their customers in unrivalled fashion.

UNITI EXPO Extended coverage of this important new event.

Accounts Enquiries dorota.chojecka@PETROLWORLD.com Subscriptions subscriptions@PETROLWORLD.com Tel: + 353 (0) 402 30500

PW RETAIL SURVEY GERMANY

66 70 72

Published quarterly (four times a year) both the WORLD Magazine and the C-STORE executive Magazine, including all their Supplements, are circulated to all key purchasing decision makers within the fuel value chain from Logistics (distribution), through retail marketing to C-Store/G-Store across the globe. Additionally the vast majority of key personnel within companies supplying to these retail brands are recipients. Total audited distribution as of March 20th 2010 was 16,560 copies.

FUEL DISTRIBUTION AND LOGISTICS NEWS

PRODUCT AND SUPPLIER NEWS KPS, Fibrelite and OPW: A New Era Exclusive insight into a landmark merger. Kalibrate CEO Bob Stein comments on an eventful and successful year.

Press Releases / Editorial newsdesk@PETROLWORLD.com Event Information events@PETROLWORLD.com Tel: + 353 (0) 402 30500

OIL COMPANY AND RETAIL BRAND NEWS EUROPE NORTH AMERICA ASIA AFRICA THE MIDDLE EAST LATIN AMERICA

SECTION 4: PRODUCTS & SUPPLIERS

Welcome to the latest issue of PetrolWorld Magazine. This quarter, we have enjoyed the privilege of an invitation to Puma energy in Geneva, and an interview with key management. We are therefore happy to bring our readers exclusive insight into this rising giant’s business strategy and objectives in our company profile on page 6.

Advertising Enquiries advertising@PETROLWORLD.com Tel: + 353 (0) 402 30500

SECTION 3: FUEL DISTRIBUTION 60

President David Egan

Art Director Anja Coyne

SECTION 2: NEWS 30 36 42 48 52 56

+ EDITOR'S LETTER

International Editor Derek Owens

PW RETAIL SURVEY GERMANY

+ CONTACTS

NEW LOOK PETROLWORLD:

All material © 2014. No part of these publications or any other WORLD material may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior written consent of the Publisher. Opinions and comments expressed herein are not necessarily those of the Publisher. All rates are correct at time of going to print but are subject to change. Whilst every effort has been made to ensure that all information contained in these publications is factual and correct at time of going to press, WORLD cannot be held responsible for any inadvertent errors or omissions contained herein.

PEOPLE ON THE MOVE THE PETROL WORLD TEAM ADVERTISER INDEX NEXT ISSUE SPECIAL SUPPLEMENTS: C-STORE EXECUTIVE

04 DONNYBROOK FAIR A C-Store concept trading on quality food. 08 NEWS The latest developments from the convenience world.

PETROLWORLD

This new website is one of several of developments that the entire PetrolWorld team has been working on for the past 18 months. We have endeavoured to integrate our brand, website, event and e-zine offering to give our readers and advertisers the best possible opportunity to stay informed about developments in the industry and to connect with the PetrolWorld community. This represents a new chapter in our history, and we are extremely excited to be sharing it with you. These are just some of the features in a jam-packed issue, which also contains articles and insight into using digital media at the pump on page 19, an eventful year for Kalibrate Technologies on page 72, and the recent merger of OPW, KPS and Fibrelite on page 70. Meanwhile, our CStore Executive Supplement profiles Donnybrook Fair, an inventive retailer focusing on food. Meanwhile, our CStore Executive Supplement profiles Donnybrook Fair, an inventive retailer focusing on food. These are, of course, supplemented by our trademark mix of news and analysis from around the world. We hope that you find it useful for your business. We hope that you enjoy this issue. Best wishes, Derek Owens International Editor PETROLWORLD

SECTION 5: INDUSTRY INFORMATION 74 75 75 76

Elsewhere, our attention is fixed on Germany and Uniti Expo, a new but significant event in our industry calendar. We have previewed this event and some of the most important products being exhibited on page 22. To coincide with this, our regular country profile examines the German fuel retail market in depth on page 11. Visitors to PetrolWorld.com will, of course, have noticed a change in our website. On page 15, we introduce this new and improved web presence, exclusive member e-zines and a special subscription deal for our loyal readers.

CORRECTIONS & CLARIFICATIONS

Published By: David Egan Associates SW Wincentego 112/204, 03-219 Warsaw, Poland

In the last issue of PetrolWorld, a table on page 9 of the Country Profile on Oman incorrectly referred to ‘Qatar Fuel’. This should, in fact, have referenced Al Maha Petroleum Products, as per the text of the article. We apologise for this error.

PETROLWORLD

004

Section 1

Feature > World View

Feature >World View

Section 1 005

WORLD VIEW

Landmark news from around the world. Comment: Echoes of Australia in Clubcard Fuel Discounts

Gulf Oil International Announces New Partnership

compete with those supermarkets offering petrol and diesel to lure in customers. The persistent complaint of the off licence trade - that retailers are using cheap booze to sell expensive groceries - could fairly be echoed for fuel.

Gulf Oil International has announced a new partnership with PETROLWORLD to promote and grow the Gulf retail network by actively seeking new partners in countries where there is currently no presence. “There are still a lot of opportunities for prospective fuel partners to become official licensees. These could be business ventures looking to set up a new network or an existing network that is looking to grow its presence through the use of a globally recognised quality brand,” notes Gulf Business Development Manager Paul Stannard.

Now, Tesco has made the link between grocery purchases and steep fuel discounts more explicit, with a Clubcard Fuel Scheme offering a two pence per litre discount for every £50 customers spend in-store. With a retail network of 500 fuel service stations - and 60% of the UK population living within 10 minutes of a site - Tesco’s move represents a truly national challenge to the sector.

For news on PETROLWORLD, turn to page15. The announcement that Tesco in the UK intends to offer steep discounts on fuel to customers who buy their groceries with the retail giant will give many independent fuel retailers a new headache. For a number of years, the independent fuel retail sector has struggled to

Retailers looking for comfort in the situation will be drawn to Australia, where Coles and Woolworths have linked grocery sales to fuel discounts via ‘shopper dockets’, and the Australian Competition and Consumer Commission (ACCC) has recognised the anti-competitive effects of selling fuel

at below cost price. Accordingly, the commission has pushed these dominant players into adopting lower discounts and initiated legal action to enforce their commitments. This process, however, has taken a long time, a luxury that fuel stations already under significant pressure do not have to spare. Moreover, there is no guarantee that Britain’s competition regulators will share the ACCC’s view of the market. Passively hoping for regulatory intervention is not an effective response in the here and now. Tesco has thrown down the gauntlet to all fuel retailers, who must now either compete with a deep-pocketed rival directly, or find their own unique offering to draw in customers. Some retailers will fail before any regulatory intervention delivers relief, but others will hopefully raise their game to thrive in this most competitive of environments. PETROLWORLD 18042014

Comment: Repsol-YPF Settlement a Positive Deal for Both Parties Nearly two years have passed since the expropriation of Repsol’s valuable majority stake in Argentinean oil and gas firm, YPF. In the meantime, the Spanish major has had to fight long and hard to gain proper redress for this action, and the recent announcement of a settlement between the parties can be welcomed by all.

Comment: Petronas First Home Win in Formula 1 The Malaysia F1 Grand Prix saw Petronas achieve their first home win in Kuala Lumpur. Driver Lewis Hamilton’s victory was the 15th for the Silver Arrows in Formula One and the 101st for Mercedes-Benz power. “I’m incredibly happy today. This is my first win in Malaysia after eight attempts

PETROLWORLD

and to do it for our Petronas family in their home country makes it even more special,” said the Malaysian Grand Prix winner.

making the event a historic occasion for both Mercedes and Petronas.

Their other ‘silver arrow’, driven by Nico Rosberg, finished second. The last time two silver arrows finished in both leading positions in a Grand Prix was in 1955,

For more news from Asia, turn to page 42.

PETROLWORLD 18042014

Repsol has accepted a fixed package with a nominal value of $5bn, and a complementary package with a value of up to $1bn. While this is less than the company sought in litigation against the Argentine Government, Argentina’s past engagement with institutions such as the World Bank should be borne in mind - it has long proved difficult, even with right and the law on one’s

side, to enforce a judgement against a country that simply refuses to pay. It is telling that key shareholders such as Pemex consistently sought a negotiated settlement in as amicable a fashion as possible.

Chairman Antonio Brufau as he endorsed the deal. With this long-drawn out episode behind it, the company can finally look to a bright future as one of the world’s leading integrated majors.

The board of Repsol can be proud of what they achieved in the difficult circumstances of the YPF expropriation. Having sought to defend shareholder value in the courts, they negotiated an enforceable settlement that greatly simplifies the landscape both Repsol and other firms seeking to do business in Latin America. “The agreement reached will allow us to look towards the future with more hope and with a higher guarantee of success which will no doubt provide us with greater opportunities for growth,” noted

The Repsol agreement is equally important for Argentina. International investment in Argentina had dwindled to dangerous levels since the nationalisation of YPF, and the matter also affected its balance of payments and inflation. Already we have seen Chevron agree $1.6bn in the Vaca Muerta shale project. The agreement with Repsol and the new investment from Chevron represent confidence in Argentina. PETROLWORLD 18042014

PETROLWORLD

006

Section 1

Feature > Company Profile: Puma Energy

Puma Energy - A New Breed of Oil Major

Following an interview with key management figures, PETROLWORLD offers an exclusive insight into Puma Energy, an increasingly important global player in fuel retail and distribution.

CEO Pierre Elardari

Chief Financial Officer Denis Chazarain

As the traditional major oil companies have sold downstream assets around the world, PETROLWORLD has followed the emergence of a new type of major oil company in downstream – Puma Energy. In the last three years alone, PETROLWORLD has published over 80 key news items depicting the expanding development of this downstream company in four continents. Puma Energy has achieved global momentum with a unique business model.

Moving from a solid base in sub-Saharan Africa and the Caribbean to the mature and competitive Australian market could be seen as a break in the company’s strategy to date. However, with a better understanding of Puma Energy’s approach to acquisitions, it makes eminent sense. “People might see us as purely emerging markets, but it’s not exactly an emerging market focus. What we’re looking for is growing markets where you have a lack of infrastructure, and where we can have an integration of supply structure. We are going into places where we can meet those three criteria, and Australia is one of those markets,” explains Chazarain.

The Australian Job For many observers, Puma’s entry into Australia during 2013 was as surprising as it was dramatic. The company, which had previously been associated with developing markets, became Australia’s largest independent retailer almost overnight, acquiring Ausfuel Gull, Matilda, Neumann and Central Combined Group and Chevron Bitumen.

PETROLWORLD

Section 1 007

PUMA OPERATIONS

COVER STORY

Recently our President David Egan spent the day with key senior staff in Geneva, including CEO Pierre Eladari and CFO Denis Chazarain. Here PetrolWorld offers an exclusive insight into Puma energy.

Feature >Company Profile: Puma Energy

This also makes particular sense when one considers the entry focus on Western and Northern Australia. In Australia, the decline of the refining sector and economic growth elsewhere means that Puma can add value by investing in distribution assets, he adds. “There is a lack of infrastructure, a lack of storage facilities, and a lack of service stations. The basic infrastructure is not at the size of market, or the size of the potential market, especially as you have the refining system closing down

in the South. These markets used to be supplied by small ships coming from the refinery - now it’s big ships coming from Korea or Singapore. The infrastructure, even where it exists, is not adapted at all. Australia is not a surprise if you look at it this way.” By improving import terminal assets, and adopting an efficient and reliable distribution system, Puma energy aims to achieve a highly competitive position within the market, with growth from demographic trends, mining and a strong economy likely to continue.

The Puma Analysis Puma Energy’s growth strategy is based on a solid, compelling analysis of the global fuel market. Looking beyond already-mature markets where improving fuel economy and changing consumer patterns are reducing fuel sale volumes, Puma sees a steady rise in global fuel demand, and continued growth in developing economies outpacing the Western world. Importantly, much of this growth is underpinned by factors that are like to continue, Puma says. Populations are expanding, trade linkages are deepening, investment is growing, and infrastructure is continuing to improve - particularly in developing markets. Indeed, in 2012, the Middle East, Africa, Central and South America and Asia Pacific regions accounted for just over half the total global demand for liquid fuel. By 2040, Puma predicts that these regions will account for 61% of global totals.

AIRPORTS

STORAGE (M3)

SERVICE STATIONS

EUROPE ESTONIA

890,865

NORWAY

97,930

RUSSIA

109,671

SPAIN

51,192

SWITZERLAND TOTAL EUROPEAN ASSETS

1,153,658

AMERICAS BELIZE

26,744

CUBA DOMINICAN REPUBLIC

134,340

EL SALVADOR

319,247

GUATEMALA

324,865

150

134,962

172

222,813

HONDURAS NICARAGUA

PANAMA

PARAGUAY

23,003

177

PUERTO RICO AND US VIRGIN ISLANDS

240,000

349

TOTAL AMERICAS ASSETS

1,425,974

1,025

49,550

AFRICA ANGOLA BENIN

4,800

BOTSWANA

13,106

CONGO-BRAZZAVILLE

DEMOCRATIC REPUBLIC OF CONGO

12,500

GHANA

5,400

IVORY COAST

176,570

KENYA

MALAWI

MOZAMBIQUE NAMIBIA

11,478

120,000 3

133,973

NIGERIA SENEGAL

5,000

SOUTH AFRICA TANZANIA

122,892

ZAMBIA

25,844

681,113

391

AUSTRALIA

101,000

262

INDONESIA

27,700

MALAYSIA

739,000

ZIMBABWE TOTAL AFRICA ASSETS

MIDDLE EAST / ASIA PACIFIC

MYANMAR SINGAPORE UNITED ARAB EMIRATES

630,096

VIETNAM

8,500

TOTAL MIDDLE EAST/ ASIA PACIFIC ASSETS

1,506,296

262

4,767,041

1,678

TOTAL GLOBAL ASSETS

PETROLWORLD

008

Section 1

Feature > Company Profile: Puma Energy

Feature >Company Profile: Puma Energy

Section 1 009

Puma History Puma Energy as a brand has a surprisingly long history before its explosion onto the world stage.

1929 Another factor turns this long-term identifiable trend into a tangible opportunity for a company like Puma. National oil companies have emerged to challenge the historic dominance of the ‘majors’ in the oil industry, along with local specialist independent companies and traders. The majors have responded to this by weighting their investment and focus towards the upstream business, often retrenching from downstream activities such as refining and distribution. This is particularly pronounced in markets where major companies lack their own local, competitive refining assets. This creates a vacuum where Puma, with its international reach and strong focus on downstream can capitalise. Of course, local independent distributors and national oil companies are also keen to benefit in this environment: often, they enjoy the benefits of flexibility, a low cost base and local knowledge. However, they often struggle to achieve a sustainable critical mass in the downstream sector, and find it difficult to meet consumer demand for reliability and product quality. Meanwhile, changes at the refinery level - particularly the decline of small-scale refineries amidst competition from large Asian or Middle Eastern facilities - create a need for companies with distribution and storage expertise. Puma predicts that the long-distance trade in

PETROLWORLD

refined products – such as heavy fuel oil flow from Rotterdam to Singapore, gasoline flow from Amsterdam to the US, and jet-fuel flow from the Middle East to Europe – will be a continuing feature in the sector, driving demand for independent storage capacity.

The Puma Model With that analysis in mind, Puma Energy has developed a model to capitalise on its strengths of reliability, global reach and willingness to invest. Firstly, the company aims to expand into markets with high - and growing - demand for fuel products. Then, Puma integrates transportation and distribution within a market to deliver quality fuel reliably, safely, and efficiently. In tandem with this, the company looks to develop key infrastructure: both in terms of terminals and storage. This investment is designed to power organic growth. Indeed, while highprofile acquisitions have been a big part of the Puma story to date, says Chazarain, development and growth after an acquisition is key. “New terminals, new service stations, that’s really the mark of Puma. Each time we make a new acquisition, we add new infrastructure. You don’t write a press release every time you build a service station or a tank. but, in reality, that’s the basis of Puma: construction,” he explains. “We’re building storage; we’re

building service stations.” A key proof of this is the fact that, during 2013, some 60% of revenue came from organic growth of the business. Interestingly, Puma does not actively seek to own or operate refining assets - while the company will invest “where it makes sense”, its exposure to the vagaries of refining has been limited. Moreover, Puma doesn’t aspire to dominance in convenience retail, instead focusing on its core expertise of distributing and marketing fuel. This means that a great deal of control within the retail network is ceded to individual dealers. “We feel that the dealer who is managing his own shop in his local area knows better what he wants to sell. The dealers are happy because they’re making money in the shop, a bit of money in the restaurant, giving us a return fee. Of course we’ll look at what the dealer is doing: he needs to keep the shop clean and follow standards. But we leave him managing his own business,” says Chazarain. Entrepreneurs, he argues, are more likely to be pro-active and creative in marketing amidst their own communities than an employee.

The Puma brand is created in Argentina in 1929 by Compañía General de Combustibles (CGC).

1947-1994

Puma continues its development in Argentina, and establishes a retail presence in Ecuador.

1994

Puma merges with two local companies to form a new service station network called Eg3.

The approach has proved extremely successful to date by any objective measure. The company nearly doubled its gross profit from $631m to $1.158bn

Puma consolidates under a common management team.

2009

Puma enters Mozambique

2010

Puma agrees to buy BP’s fuels marketing businesses in Namibia, Botswana, Zambia, Malawi and Tanzania.

2011

Trafigura purchases the rights to the Puma brand in 1997, ushering in a new phase of development for Puma.

Puma acquires Chevron’s and Exxon’s fuels marketing businesses in Belize, El Salvador, Guatemala, Nicaragua and Panama, Puerto Rico and US Virgin Islands.

2002

2012

2004

2013

1997

Puma Energy enters Paraguay and makes its first foray into Africa through an investment in Congo.

Puma enters the Angolan market and invests in the UAE.

2006

Puma enters the Ivory Coast

Success

2008

2007

The Puma logo is redesigned to improve brand recognition, Puma enters storage markets in Estonia and Norway.

Puma establishes its Singapore office, acquires a distribution business in Vietnam, and enters Indonesia.

Puma acquires Neumann Petroleum, Ausfuel and Central Combined Group in Australia.

2014

Puma Energy Completes 99% stake in Medco Sarana Kalibaru, the key storage and distribution arm of Medco Energi.

PETROLWORLD

010

Section 1

Feature > Company Profile: Puma Energy its position as an aviation fuel supplier while also working to integrate recent acquisitions to power future growth. These recent acquisitions include fuel service stations in Botswana, Namibia, Zambia, Tanzania and Malawi. The continent’s market fundamentals with an increasing population, greater stability and rapid economic growth offer much cause for optimism, with oil demand set to grow by 6% according to the IMF.

between 2011 and 2013, recording EBITDA of $551m last year as well. Puma’s operating profit has remained steady at $371m even as its active acquisition programme led to higher depreciation expenses than 2012, while net fixed assets grew in value from $1.369bn in 2011 to $2.226bn in 2013. The most dramatic growth has been enjoyed in sales volumes, which rose from 5bn cubic metres in 2011 and 8.9bn cubic metres in 2012 to 13.053bn cubic metres last year. With an estimated 170m cars fuelled in 2013, Puma’s reach in key downstream growth markets continues to expand. Puma also enjoyed encouraging results from its non-financial KPIs, with the retail network rising from 776 sites in 2011 to 1,678 sites in 2013. Moreover, the company has steadily increased the proportion of its storage facilities complying with the API650/NFPA30 safety standards. Even as the volume of storage available continued to grow, Puma’s compliance percentage reached 89%, up from 74% in 2011.

Key Developments Against the backdrop of this continued success, Puma also experienced major developments during 2013. Most obviously, the company can point to rapid successes in integrating its Australian business. Puma has particularly targeted growth in Western Australia,the Northern Territory and Queensland, where growth is underpinned by a strong mining sector, with a need for infrastructure investment. The 2013 acquisitions

PETROLWORLD

included a bulk seaboard fuel terminal at Eagle Farm in Brisbane, which has been expanded in capacity to 57,000m3, while a new petroleum import terminal at Mackay has come online to improve local distribution. Puma grew elsewhere in the Asia Pacific region, building on the acquisition of a majority stake in Medco Energy during December 2012. The company undertook a restructuring and training programme, including a renewed focus on the mining sector and exiting non-core market segments. Puma also upgraded existing facilities, launching investment projects in both Sumatra and Kalimantan. In July 2013, Puma was selected by the Ministry of Transport in Myanmar to develop a petroleum product import terminal and oil storage tanks in Thilawa harbour while, in Vietnam, Puma acquired Chevron’s bitumen business. On the Latin American front, Puma made particular headway in Puerto Rico, commissioning the first phase of its upgrades at the Bayamón terminal. The company aims to increase capacity at the site to 300,000m3 as it stabilises fuel supply on the island, and also completed the rebranding programme of its fuel service stations across Puerto Rico. Moreover, Puma announced plans for a new regional headquarters on the island. The complex, to be constructed at a cost of $17m will become the headquarter for the Caribbean and Latin America, and is slated for completion by April 2015. For Puma in Africa, 2013 was a year of consolidation. The company strenthened

On the global stage, Puma enjoyed renewed investment from partners and the international financial community. Sonangol, a leading Angolan firm, added investment of $500m to increase its holding to 30%, while long-term financing was obtained for the company’s Australian acquisitions from ANZ, NAB and Westpac. In June, Puma’s business model won a vote of confidence from major financial players when its three-year term loan and revolving credit facility, valued at $531m, was significantly oversubscribed from leading banks such as Goldman Sachs, Societe Generale, Standard Bank, ING, National Australia Bank, Banco do Brasil, BGFI International, GarantiBank, Zenith Bank, Hua Nan Commercial Bank, Bramer Bank, ICICI Bank, Ecobank and CaixaBank.

PW RETAIL SURVEY | Germany

PW RETAIL SURVEY

Germany: Increased focus on competition has led to greater transparency in the german fuel retail market, but dominance of major players remains. oligopoly on the German petrol station markets. The finding was based on an analysis of the market structure and the behavioural incentives it generates, as well as an investigation into the actual price-setting behaviour adopted by market players.

Germany's competition regulator, the Bundeskartellamt, is concerned about the state of the fuel market.

The Bundeskartellamt found that the five leading companies - BP/Aral, Jet, ExxonMobil/Esso, Shell and Total - hold a collective dominant position on the market under German law, thanks to their national footprint and vertical integration along the value chain. In the regulator’s view, a number of factors in the market encourage a form of implicit or tacit collusion, including the high barriers to entry, the low price elasticity of fuel and the generally stable market conditions. As a result, the Bundeskartellamt said, major players were encouraged to adopt somewhat permanent and stable practices.

2014 and Beyond With deep-pocketed backers and a business model already delivering success, it should be no surprise that Puma has ambitious targets for 2014 and beyond. The company plans to continue expansion into high-growth markets and developing assets in countries with infrastructure deficits to drive organic growth, with the potential for future acquisitions as opportunities arise. Keeping a broad customer base and well-balanced earnings between Africa, the Americas, North East Europe and the Asia Pacific region has also been identified as a priority. “Our development has been through organic growth and also initiatives,” comments Chazarain. “While we’ve achieved a large presence in our traditional regions, there are also opportunities to expand more using the same model.” Whether through further headline-making deals or continued organic growth and investment, Puma looks likely to remain a growing presence in the world downstream industry.

Section 1 011

Like many developed European markets, the German fuel retail and distribution industry has come in for considerable scrutiny in recent years. High fuel prices - amplified by taxes - have led to some consumer conspiracy theories about collusions and cartels among the major players. So it was no surprise when Germany’s competition regulator, the Bundeskartellamt, turned its focus on the fuel retail market, with a lengthy

investigation of the sector which resulted in a landmark May 2012 report.

The Bundeskartellamt Findings The report, while clearly refuting any allegations of deliberate collusion, highlighted some of the issues hindering both small players and consumers even in this highly developed market. Specifically, the regulator found evidence of collectively dominant

Perhaps more worryingly from the regulator’s point of view, dominant suppliers face little external competitive pressure. Quite aside from a high barrier to entry, the Bundeskartellamt found that smaller or independent fuel service station operators usually lack both the incentive and the ability to compete. Without their own refinery capacities, station operators are dependent on the dominant suppliers for their fuel supplies, enabling those suppliers to “punish” any price undercutting.

PETROLWORLD

012

Section 1

PW RETAIL SURVEY | Germany

Alternative Fuels Germany is one of Europe’s leading lights in the consumption of biofuels, with estimates consumption nearing 3m tonnes as early as 2006. The country’s largest biodiesel company is ADM Ölmühle Hamburg AG, joined by MUW (Mitteldeutsche Umesterungswerke GmbH & Co KG) and EOP Biodiesel AG. Germany has enacted legislation to promote the use of biofuels in transport through 2014, and is active in the pan-European debate on balancing biofuel adoption with the impact of Indirect Land Use Change (ILUC). In practice, moreover, the Bundeskartellamt studied rounds of price increases in the German fuel market, confirming its view that a small group of dominant players and industry practices made it anti-competitive. As a rule, the regulator found, price increases occur in the entire petrol station network of the market players, whereas price reductions occur as selective measures initiated by individual petrol station operators. Moreover, after one or two leading suppliers initiated a price increase, other players tended to follow, while a steady pattern of increases could be timed down to a precise day and time, the regulator claimed. The regulator’s report obviously sparked considerable debate, and indeed raised the question of whether a price regulation system based on models

adopted in other countries would be ideal. However, the Federal Government decided not to encroach on the companies’ freedom to set and change prices, arguing that there was no robust empirical evidence that such a system would improve mattters.

Regulator Action It is worth stressing - as the Bundeskartellamt did - that the investigation found no evidence of illegal agreements between the main players in the market. Moreover, the collectively dominant position does not constitute a competition law violation in itself. Nonetheless, the regulator has stepped up its activity in the sector, using its powers to curb what it sees as anticompetitive developments.

This has been most obviously done through merger control. While the Bundeskartellamt allowed BP’s landmark takeover of Aral in 2001 to proceed subject to commitments, a stricter line has been taken in proposed mergers during 2008 and 2009 of Total and OMV and between Shell and HPV. The regulator blocked Total’s takeover of OMV stations in 2008, a move challenged by the French major. As the case proceeded towards the Federal Court of Justice, however, Total withdrew its appeal and another buyer purchased the relevant fuel service stations. While the resolution of the case was seen as a positive step, the fact that the Federal Court did not make a ruling on the matter means that the regulator’s belief in a dominant oligopoly in the German fuel markets has yet to be confirmed. In April 2012, however, the Bundeskartellamt opened proceedings in a few cases against the five major oil companies, accusing them of unfairly hindering independent petrol stations. The regulator cited several complaints from independent petrol stations about the pricing behaviour of the five oil companies, including claims that the dominant companies sold diesel and petrol fuel to independent petrol stations at higher prices than they charged from customers at their own petrol stations. Independent retailers had also alleged that the large companies had offered petrol and diesel fuel at several of their petrol stations at prices below cost price. Proceedings are still pending in the cases which may prove significant for the sector.

The Market Transparency Unit for Fuels The industry has, however, seen the introduction of the ‘Market Transparency Unit’ for motor fuels (MTS-K) in summer 2013. Since the December 2013, all fuel service stations in the country have been obliged to notify any price changes to the unit within five minutes.

Aral remains a dominant brand despite regulatory attention.

PETROLWORLD

The reporting requirement, advocates say, will enhance transparency and strengthen competition through two means. Firstly, the reporting will make it easier for the Bundeskartellamt to identify and punish unauthorised behaviour on the markets, such as breaches of antitrust legislation. For individual motorists, the reporting will allow comparison of the current fuel prices at petrol stations.

PW RETAIL SURVEY | Germany

Section 1 013

1/1/2001 1/1/2003 1/1/2005 1/1/2006 1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014

Aral

2.395

2.393

2.567

2.522

2.476

2.275

2.325

2.407

2.406

2.391

2.384

2.381

Shell

1.515

1.432

2.23

2.22

2.225

2.156

2.162

2.08

2.071

2.088

2.077

2.044

DEA

1.681

1.635

Under Shell Brand

Esso

1.385

1.351

1.272

1.23

1.214

1.15

1.126

1.106

1.089

1.077

1.052

1.019

958

914

Under Aral Brand

Total

1.056

1.054

1.156

1.055

1.026

981

975

965

962

969

1.007

1.093

Avia

680

618

814

809

817

764

782

775

778

787

789

809

Jet (ConocoPhilips)

710

750

739

754

755

725

721

733

743

753

765

779

Agip

388

377

682

681

673

651

504

460

437

428

435

494

477

468

516

511

520

517

567

558

555

Orlen OMV

116

382

404

413

396

388

380

317

314

305

HEM-Tamoil

223

199

236

256

266

261

358

387

390

389

393

402

Westfalen

177

207

216

218

253

246

249

247

249

250

180

198

202

200

195

193

195

198

196

215

136

115

117

125

131

157

165

166

174

176

111

109

108

106

110

108

105

OIL! Beckman/Q1Tankstellenvertrieb Baywa

106

113

109

Kuwait Petroleum

Calpam

Eller Montain

Score

SVG

Eggert (EM)

169

Freie (BFT)

1.726

1.515

1.542

1.581

1.648

1.659

1.647

1.66

1.785

1.809

2.251

2.315

Other

2.83

2.695

2.405

2.324

2.223

2.14

2.114

2.076

1.957

1.918

1.435

1.278

TOTAL

16.324

15.971

15.428

15.187

15.036

14.527

14.447

14.41

14.367

14.373

14.328

14.272

Source: Petroleum Industry Association (MWV)

PETROLWORLD

014

Section 1

PW RETAIL SURVEY | Germany

Motorway Sites Germany distinguishes between regular fuel service stations and the stations that dot the country’s network of Autobahns (motorways). Autobahn Tank & Rast is the company appointed to administer approximately 350 fuel service stations and 390 service areas along the Autobahns, leasing these valuable facilities to private tenants. Around 500m guests visit Autobahn Tank & Rast’s service facilities each year, making a leasehold in the network a source of significant potential profit. In 2013, the presence of major players was enhanced on the network with the auction of 100 sites. Mittelständische Energiewirtschaft Deutschland argued that “ the design of the auction put SMEs at a clear disadvantage”. The unit’s introduction has been described by the Mittelständische Energiewirtschaft Deutschland, which represents independent firms in the sector, as “an organisational and financial tour de force”. In the medium term, hopes are high that the system will result in greater transparency and improved competition.

The Current Picture As regulators and policy makers continue to seek greater competition and transparency - the Bundeskartellamt has launched yet another enquiry, this time into the conditions in the production and wholesale levels of the sector - the five main brands continue

to dominate the market. Small brands generally play a regional role, with a 30% market share for the SME sector. One interesting exception, of course, is the BFT brand of fuel retailers, which comprises over 500 companies with a 2,315 station network. According to the Mittelständische Energiewirtschaft Deutschland, the number of retailers under the BFT dropped in the past year, largely due to consolidation within the organisation. Moreover, the number of single fuel service station operators declined overall because of growing official requirements, as well as competition within the market. While independents keep their collective heads above water, some will doubtless hope for a major regulatory shake-up arising from the 2012 Bundeskartellamt action. However, even following the integration of the centre-left Social Democrats into Angela Merkel’s Government, post-unification Germany is reluctant to impinge on the rights of private industry. While some alleged practices may be outlawed or face a clampdown, the dominance of Germany’s leading integrated companies looks to be stable.

Section 1 015

A NEW LOOK Discover PETROLWORLD’s new website, buyer guide, event directory and more.

PETROLWORLD has long been the industry’s most trusted source of global news, independent analysis and insight into issues affecting the downstream fuel retail and distribution sector. Now, with a new website and many added features, we look forward to bringing you a better experience than ever. PETROLWORLD is a unique matrix of web online, print publications and face to face events. Over the last 18 months, PETROLWORLD has reviewed and reorganised its information and event services. This also included major work on its existing and historical database to support the new roll out programme from June 2014. The PW brand itself was also looked at and some small changes have been

PETROLWORLD

Feature > PETROLWORLD

made to keep a consistent branding across all products.

Join the Conversation

The new look website of PETROLWORLD represents an exciting new chapter and will be reflected in the roll out programme of additional information services.

You can have your say on industry issues and news with the new comments feature on PETROLWORLD articles

A New Website PETROLWORLD’s new-look website features more news than ever before, easy-to-use tags linking articles by country and company, and easy navigation. This news site for the twenty-first century also offers an improved browsing experience from mobile phones and tablets, as well as video capability.

Supplier Directory PETROLWORLD’s comprehensive supplier directory is under construction and set to launch before the end of 2014. However, you can already set up your free directory listing, and secure special promotion using the website.

PETROLWORLD

016

Section 1

Feature > PETROLWORLD

Industry Event Calendar

Users can also enter their own event for inclusion, and avail of special promotion options, through petrolworld.com.

To celebrate the new look PETROLWORLD website, we are offering a unique subscription offer for a limited period.

Self-Service Advertising

SPECIAL OFFER PRICE: €115 OR US$160 Digital Newsletters by Region New digital newsletters will be published by contintent, namely Asia, Africa and Middle East, Europe and

Subscribe to the PETROLWORLD Magazine NOW for €95 + €20 postage charge, totalling = €115 (or US$160)

finally The Americas. These newsletters will be published monthly. The roll out period started in April 2014 with the first PW Europe Newsletter.

Special offer includes user name and password to the online PETROLWORLD Archives (valued €365)

PETROLWORLD Timeline 1994 European Service Station Information Bureau set up by David Egan in London. This bureau supported the then Forecourt News trade magazine and the UK Forecourt Show. The information bureau initially targeted the new Pan European fuel retail and distribution market.

2002 First Asia business forum outside of Malaysia, takes place in Bangkok Thailand. ‘}{‘ PETROLWORLD name brand formally introduced.

1995 The first ESSIB Retail Survey was published for Europe. This included all the key fuel brands in each of the main Western Europe markets.

2004 PETROLWORLD Global News Service online launched in February. Within six months, key industry players from 145 countries had visit the website.

1995 To reflect the changing global market place, the name of ESSIB was changed to “international service station information” (iSSi) which publihsed a new quarterly global newsletter for members.

2005 – 2012 While Malaysia remains key focal point for PW, strategy was developed to hold business forums in China, India, Indonesia, Philippines, and Singapore during these years.

1996: A new international publication NPN International was launched at the Forecourt Show in Birmingham June 2006. David Egan spearheaded and negotiated with Adams Business Media in Chicago. After two years, the association with Adams ended in 1998.

2009 Publication of PETROLWORLD Magazine takes place in the autumn. The quarterly publication to include Convenience Retailing supplement in A5 size.

1997: New independent event company set up by David Egan and Oliver Needs to set up one to one business meeting forums in the developing markets of Asia, Africa, and the Middle East.

2012 Road Map for Asia Agenda set up with a number of discussion groups taking place in Mumbai, Kuala Lumpu and Singapore.

1998: First ASPEC business forum for Asia held in Penang, Malaysia. 1999: PetrolWorld name registered by David Egan for both internet and as a business name. 2000: First Business Forum for Africa and the Middle East held in Sun City, South Africa. 2001: New international trade media model concept developed that combined focus of events , web and print. David Egan devised model in London.

PETROLWORLD

Section 1 017

SPECIAL PETROLWORLD MAGAZINE SUBSCRIPTION OFFER

A first in the industry, PETROLWORLD’s new event directory lets you see where events are happening in the world as well as key information on dates, times, contacts and pricing.

Advertisers can organise promotional campaigns on PETROLWORLD.com at the touch of a button. Plan advertising periods, upload artwork and pay for your campaign, all through the easy-to-use website interface. PETROLWORLD’s sales team will remain on call to assist anyone who needs personal support in organising their advertising.

Feature > PETROLWORLD

(This special offer price will be guaranteed for three years to those that subscribe and complete payment for the period of the offer.)

2003 Key PW visits to Middle East including Jordan and UAE.

2010 Final completion of PW Global Database coincides with a number of trips to Brazil and Latin America.

2013 PETROLWORLD reorganised in Dublin and new PW Consult set up with registration in Warsaw, Poland. Plans set in motion for next five years for web, print and events. 2014 New Look PETROLWORLD launched in May. A number of new information service products to be rolled out during 2014, 2015 and 2016. This will also include new event programme.

PETROLWORLD MAGAZINE SUBSCRIPTION DETAILS: • Copy of PETROLWORLD Magazine for one year • Copy of Cstore Executive Supplement for one year • Access to online version (members only) • Access to PETROLWORLD archive library on new look PETROLWORLD website • Access to current news site and breaking news service • Weekly newsletter • Members-only newsletter

FOR MORE INFORMATION ON SUBSCRIPTIONS email subsciptions@petrolworld.com or call +353 402 305 00

PETROLWORLD

Feature > Pump Media

018

Section 1 019

Getting the Message Pump Media Digital signage at the fuel pump allows retailers to connect with their customers in unrivalled fashion.

Customers refuelling at the pump represent the ideal captive audience. They’re hardly going to go anywhere, and the menial task they’re performing doesn’t demand too much of their attention. Ideally, they should even be wary of using their phones because of safety concerns. So, offering those consumers something that can entertain them - and alert them to special deals or savings inside your convenience store - seems an obvious move.

How it Works That’s the premise behind offering digital media at fuel pumps. Various operators in the field have emerged,

PETROLWORLD

including Australia’s Adverto, Gas Station TV (GSTV) and Outcast Media (which was recently acquired by Gilbarco Veeder Root), but the fundamental principle remains consistent: integrated screens in fuel pumps show engaging content, such as local news or weather updates, and also broadcast the special offers that may be available in the on-site convenience store. Indeed, Gas Station TV works with top external advertisers to boot. “Our research shows almost all (93%) of customers prefer stations with GSTV media platforms,” reveals Gas Station TV CEO David Leider. “Video at the pump provides gas retailers with an opportunity to influence their consumers

steps away from the c-store, which is something you won’t get from other mediums like billboards and TV,” he adds. Indeed, the medium also offers a huge degree of flexibility to time offers that coincide with the local environment or even the weather. “ If it’s snowing, consumers might see a different ad – perhaps for wiper fluid or a c-store hot chocolate – than if it were raining or sunny. Promoting in-store products directly on pumps allows gas retailers to reach their target audiences while they are in transit. This ultimately drives more traffic into the c-store and influences purchase decisions,” explains Leider. Parker Burke, Director

PETROLWORLD

020

Section 1

Feature > Pump Media

of Marketing at Gilbarco Veeder Root, is another believer in the benefits of targeted couponing for retailer and consumer alike. “It gives retailers an opportunity to promote higher-margin items inside their stores, and gives consumers the call to action they need to come inside and take advantage of savings.”

Personalising the Approach Taking that to the next level, of course, creative manufacturers are looking to personalise offers by demographic using recognition technology. “We’re deploying an audience metric system where we’re able to look at who the audience is and serve content to them suiting the demographic profile of the audience. We’re able to recognise, when someone stands in front of our screens, whether they’re male or female, what age group they fit into, and then we’re able to serve them bespoke content that will be more relevant to the particular individual standing there,” reveals Anthony Deeble, Managing Director of Pump TV. The Australian based Pumpt TV is a subsidiary of advertising giant Val Morgan, while Gilbarco’s long partnership with Outcast Media resulted in a merger agreement late last year. Meanwhile, GSTV’s partnership with Wayne has steadily deepened. “ Recently we expanded the availability of the inOvationTV media platform and our GSTV-exclusive content to any gas retailer nationwide, regardless of region or fuel volume, with the purchase of new Wayne Ovation fuel dispensers,” notes Leider.

has won over many clients in its native Australia and beyond with its ability to retrofit pumps to carry digital screens. “ It costs a lot of money to be able to fit out a petrol station with new pumps... In a lot of countries, there’s an ‘if it’s not broke, don’t fix it’ kind of mentality,” says Teyghan Stadelbauer, Managing Director at Adverto. “If a company has a pump that’s ten years old and they don’t have the capex to replace the entire pump, then Adverto can provide them with the latest in technology and we’re able to retrofit our solutions to a majority of pumps. We’ve spent a lot of time and resources in ensuring that our solution is capable of being globally retrofitted,” she explains. Since taking the decision to go international just over six months ago, Stadelbauer reports that Adverto has made an instant impression. “We’ve just signed up a couple of distributors in Asia and Europe, and we’re working very closely with fuel dispenser manufacturers over the last five months or so,” she says.

A Growing Market The success is hardly surprising, as Adverto can boast a user-friendly solution and flexible support. “At Adverto we offer a range of products and services that support downstream retailers; we manufacture the retrofit

multimedia screens, support all content through our 100% cloud based software solution and for those retailer who do not have the time or resources to manage their own channel; our content team can schedule and deploy all content with a click of a button- no USB keys required. I have clients throughout the world that say ‘I love this, but don’t have the time, resources or knowledge to be able to implement the advertising and the call to action campaign on my network.’ My content management team will actually be able to deliver that for them across the globe,” Stadelbauer explains. “Even if a petrol retailer wants to go ahead and manage their own content, because our software solution is cloud-based, we’re not having to rely on console operators going out and changing content. With the click of a button, retailers can change their entire network or just one station, all online. The dashboard and software is incredibly user-friendly, and they can even create their own content through the software solution.” At the moment, Stadelbauer estimates that less than 1% of fuel retail sites worldwide have adopted digital media at the pump. However, the example of the USA - where two major companies have forged nationwide networks leaves no doubt about the potential of the medium. “Video at the pump has immense potential for global expansion. Wherever there are consumers pumping gas, there is opportunity to entertain and inform them through an enhanced forecourt experience. Most of the major oil companies are international corporations, and they tend to share best practices across their global footprint whenever possible,” says Leider. With the barriers to adoption coming down dramatically, and increased options for retailers, expect digital media to be a major force in driving non-fuel sales worldwide.

The Barriers For those retailers who don’t want or need new pumps, however, embracing digital media may be put onto the long finger. However, Adverto Outdoor Media

PETROLWORLD

022

Section 1

Feature > Uniti Expo

Section 1 023

Key Products and Companies Leading companies and exciting products featuring at this event. Franklin will also be showcasing the FLEX-ING™ brand FIREFLEX Flexible Connectors which have quickly become the industry standard and benchmark for quality as a means to easily connect pipework system to other systems components such as submersible pumps or shear valves. The benefit of their use is undeniable and they have quickly become an integral part of any installation. Installers love their ease of installation while station owners have come to depend on their durability and how easy they make regular maintenance. With tons of available options, Franklin Fueling Systems has the right connector to fit any application.

Franklin Fueling Systems H6 / 6A50

The most exciting products hitting the convention floor at Uniti Expo Uniti Expo has already become one of the most talked-about events on the European calendar. From June 3 to 5, the Messe Stuttgart will host over 5,000 square metres of exhibition and conference space, with major players from the fuel retail and distribution sector represented. In addition to the core European market, oil companies from Lebanon, Nigeria, The Philippines, Ghana and Ethiopia are set to attend, along with international distributors, installers and maintenance companies from some 17 countries. Alongside the exhibition, Uniti Expo will also feature a range of seminars with relevance for international markets organised by the Association for Petroleum and Explosives Administration (APEA). The programme includes presentations from Mark Rosling, European Asset Manager for BP, talking about the European market and the changes we can expect in the future. Bob Renkes, Executive Director

PETROLWORLD

of the PEI, will speak on the experience of biofuels in the USA, while Dr Oliver Storz, Head of the injection systems and operating fluids department at Mercedes- Benz, will discuss SCR/ AdBlue technology. The international Forum will run approximately from 13.30 to 16.00 hours and all sessions can be booked on site. There is no registration fee for any of the APEA sessions. “We planned the programme recognising that we don’t want to ‘compete’ with the exhibition,” explains Nick Needs, Managing Director of McLean Communications, Co-organiser of International Sales & Marketing for UNITI Expo 14. “We want to make sessions of a length that people can dip in and out of. We don’t want people to have to come in for a whole day of seminars.” Interestingly, organisers have also sought to add an extra level of comfort with a central plaza of over 300 square metres with a comfortable seating area,

with complimentary refreshments and free Wi-Fi facilities. “Walking the aisles of a trade fair as large as UNITI expo, visitors will certainly need a stop off point somewhere to meet colleagues or have a quick break and this impressive facility will offer everything they need, especially, as many might have just experienced a long flight. We decided a long time ago to not have admission charges for the exhibition, or impose fees for the international conference programme, but now visitors will even be able to have a snack and a cup of coffee courtesy of the event and its sponsors,” explains Bruno Boroewitsch, CEO of co-organiser com-a-tec GmbH. Registration for this key event is free, with spaces still available - you can simply visit www.uniti-expo.de to find out more. For the benefit of attendees and non-attendees alike, however, we are featuring the key companies and products featuring at the event over the coming pages.

Franklin Fueling Systems will be bringing some of its most innovative new products to the UNITI Expo. The UPP™ brand Double Wall Termination Fittings make terminating pipework at remote fill locations and inside of containment sumps simple by combing all pipework and fitting components into a single piece. Both scraping and welding operations are eliminated making installation more efficient and we are able to provide double wall containment all the way to grade level. Combined with the company’s new Nexus Series Dispenser Sump, the installation process can become even faster and easier than ever before. The optimised Nexus design means fewer sump penetrations or potential leak paths along with a number of other new features. The design incorporates an optimised containment space, integrated pipe spacing guides and a double integrated sensor port.

Franklin Fueling Systems experts will be on hand throughout the Expo to discuss the new FE Petro™ brand Diesel Exhaust Fluid (DEF) Pump Motor Assemblies (PMA) and the continued expansion of DEF/AdBlue products. The new DEF PMA is a product that provides longevity with stainless steel construction, impermeability to DEF seepage, minimal wear, and proper bearing lubrication. DEF PMA design also highlights superior performance and efficiency with multiple models to meet global requirements of voltage and frequency. From the straightforward information on fuel inventory, leak detection, and reconciliation capabilities that you get with the Colibri to the highly evolved user interface and blisteringly-fast TS-550 evo, you can have confidence in the quality, quantity, and compliance of your fuel inventory with the highest functioning, best value solution available. This year Franklin Fueling Systems staff will be present at UNITI expo 2014 and will be pleased to answer all your questions about these new products and the company’s full line of industry leading petroleum products. To organise a meeting in advance, simple contact info@franklinfueling.com.

The company’s stand is divided into three fields - petrol, LPG and Adblue - reflecting the diverse range of fuels that Elaflex products can handle. These will have themed communication islands offering information and products, combining to showcase the entire range.

Elaflex H6 / 6B10 Elaflex’s stand will cover the concept ‘from terminal to nozzle’, showcasing Elaxflex’s solutions for both fuel retailers and distributors in the downstream value chain.

New standard products and prototypes will be on show for curious visitors, and the company will also feature a number of products for LNG fuelling. In services, Elaflex will be able to showcase a new website and hose assembly configurator, which will make it easier than ever for fuel retailers and distributors to put together a product meeting their needs.

PETROLWORLD

024

Section 1

Feature > Uniti Expo

Adverto Outdoor Media H6 / 6C88 Adverto Outdoor Media produces multimedia devices that can be retrofitted or integrated to most fuel dispensers around the world. Established since 2006, the company is

With experience in deploying and installing 1,000 multimedia devices with leading brands such as BP, Shell, and Caltex, Adverto is proven to increase sales as the company helps you complete the car to counter experience with every consumer at your pumps.

As part of the UNITI expo in Stuttgart, Hectronic will be presenting its cutting-edge system solutions for company, fleet and public filling stations, as well as its innovations for intelligent tank contents management.

Hectronic GmbH H6 / 6A26 Hectronic GmbH is based in Bonndorf in the Black Forest, Germany. The company specialises in the development of intelligent system solutions for the parking and refuelling sector. Since the foundation of the original company Kienzle, in 1928, Hectronic has developed into an industrial company with operations in many countries. With close to 250 staff, seven sales subsidiaries and around 70 international sales partners around the globe, Hectronic solutions are now successfully marketed all over the world.

One highlight at the Hectronic stand will without doubt be the newly developed probe, which is custom-designed to suit the specific needs of the modern-day customer. Thanks to its floatless technology, it is wear-free and low maintenance. Only an inch in diameter, it fits optimally in all tanks as standard! Under the motto ‘Smart Refuelling’ you can look forward to product highlights related to our modern auto fuel terminals.

H4 / 4B52

PETROLWORLD

OPW CleanEnergy CNG and LPG nozzles and breakaways, including the new CNG vapor recovery breakaway, and the KPS LPG Piping System™. The combined firms will also have key new products to share with the market. SiteSentinel Nano Console

OPW, KPS and Fibrelite

The new Nano console offers the industry’s most easy-touse and learn tank gauge software interface. With simple remote accessibility and patented multi-drop technology it also drastically reduces both installation and training costs.

H6 / 6B55 and 6B71.

Fibrelite S12 Tank Sump

OPW, KPS and Fibrelite will showcase a large range of products at two adjacent stands. These include:

The new Fibrelite octagonal tank sump has large flat walls to accommodate 8 entry/exit angles for pipework and conduit. The sump can be supplied with a watertight structural inner lid or with a regular non-structural lid. Both lids can be supplied with seal manual dipstick ports. The S12 is versatile and offers great on-site flexibility.

OPW underground storage tank equipment, for example testable mechanical overfill prevention, P/V valves and fill adapters. KPS Petrol Pipe System™ - the world’s most refined double wall PE piping system – compact fittings, zero permeation and conductive for electrostatic safety. Fibrelite covers, known to be strong and resilient, yet lightweight and easy to open. Anti-static GRP. Selected Fibrelite GRP sump models from the industry’s broadest sump product range, including the new S12 tank sump and the new S20 above ground remote fill box. OPW dispensing products, including the new Avance by OPW high-flow nozzle and Avance hoses. OPW SiteSentinel Tank Gauging and Leak Detection Systems, including the new Nano console with intuitive

Fibrelite S20 Above Ground Remote Fill Sump The new above ground fill sumps come in different sizes to fit up to seven remote fill lines and one vapour recovery stage 1b connection. The lid is watertight and the largest spill tray holds 83 litres of fuel. The sump includes earth cable kit to ground the system.

In matters of cashless payment, Hectronic will be presenting solutions from automatic vehicle recognition over fleet card clearing right up to contactless payment via PayPass and PayWave. The corresponding software, including mobile apps, provides for a complete petrol station solution.

Kalibrate Technologies, formerly known as KSS Fuels, is building on more than 20 years of experience in delivering price optimisation software and deep location data to customers around the world.

Kalibrate Technologies

Section 1 025

user interface. Also on display will be the ethanol-water separation sensor and the multifunctional probe.

helping forward thinking fuel retailers to engage with their customers at the pump, bringing them different content depending on the local market dynamics, promotions, and even the weather. Up to 12 high-definition content pieces can be scheduled through Adverto’s user-friendly system. Adverto can also support your business with content management packages through the company’s very own cloud based digital signage software, seamlessly uploading and distributing your content via their virtual private network. This solution eliminates the need of USB keys, SD cards or CDs as your primary way to push your key messages to your customers and promotes safety for your key personnel on the forecourt.

Feature > Uniti Expo

Retailers in over 68 countries are using Kalibrate products to improve their operations and deliver on performance goals. As the company launches its new integrated suite of petroleum retail value chain solutions, Kalibrate looks set to continue its expansion across the globe. You can find out more about Kalibrate Technologies in our profile on page 72.

Avance High-flow Nozzle and Avance Hoses OPW’s Avance dispenser nozzles can now be ordered with Avance dispenser hoses. Avance hoses are available as vapour recovery stage II hose assemblies, as well as conventional, non-vapour recovery hoses in different sizes. All Avance hoses meet the requirements of the EN 13483 and EN 1360 standards respectively, and are directly field interchangeable. The new Avance High-Flow products range, including nozzle, swivel and hose, cover flow ranges up to 140 litres per minute.

PETROLWORLD

026

Section 1

Feature > Uniti Expo

Section 1 027

Petrotec, one of the five largest manufacturers of fuelling equipment in the world, will have a strong presence at the inaugural Uniti Expo. The company will present its four major complementary business areas: fuel dispensers, automation and payment systems, car wash equipment and international maintenance and technical support (including engineering, design and construction of fuel service stations). Petrotec fuel dispensers excel in technological capacity, durability, and quality, with a vast array of components to meet varied client needs. The company can also offer the benefits of full integration of payment means solutions at the pump (OPTs), including touch screen multimedia versions, automatic vehicle recognition solutions and a convergence of management systems and payment systems.

Petrotec Scheidt & Bachmann GmbH 6B30 and 6C20 During UnitiExpo Scheidt & Bachmann will present various new features throughout their product portfolio. At UnitiExpo, Scheidt & Bachmann will be present with two stands on the exhibition; one stand dedicated to fuel retail systems and one showcasing the dispensers portfolio. New features include the following: New system features Service station systems expert Scheidt & Bachmann will present a totally new look and feel of the site management system to the public. The upgrade kit will be available for new customers as well as a modular option to upgrade existing systems in the field. It’s all about the price! A flexible price management tool allows setting temporary prices to the original price of a product and even independent from special promotional prices. Pricing has never been more flexible before. Get to know your customers! The new customer survey module puts you in the position to learn about your customers in more detail. Questions being shown on the display of the POS support the cashier finding out about age, gender, place of living and much more. Automatic reports point out who the regular customers are, what they buy and help to adjust any promotional campaign in order to increase turnover. Making your business easier! When it comes to working at the POS, an intuitive design and easy to learn menus are most important. Scheidt & Bachmann have improved their touch POS by adding a touch

PETROLWORLD

layer maintenance functionality to its system. This new feature puts you in the position to design the POS the way you need it. An individual design per operator allows having just the right functions available at the right time.

H6 / 6B60

of innovative technologies. However, regardless of what the newest technology was, a common point has always been the quality and reliability of products. Tatsuno’s management creed includes the principle of providing customers with a constant supply of fresh technology. Based on this principle, Tatsuno offers a constant endeavor to create unique and original products.

Interact with your customers! Location based services support your sales team directly at the POS. Based on the iBeacon technology, additional messages pushed to the mobile device of your customers inform about product features, integrate into a current promotion campaign or simply welcome your customer at your site offering a coffee for free. There are various options to integrate location based services into your marketing campaign. To test these new options Scheidt & Bachmann offer an interactive journey on their stand where a new smartphone app is introduced highlighting location based services and allowing visitors to experience the potential first hand. Be flexible, be always up to date! Scheidt & Bachmann head office and back office solutions are available in the cloud allowing you to operate your business anytime and anywhere. Whether you want to control your complete petrol station network or just a single site we put you in the position to manage your sites wherever and whenever you want. An internet connection and access to the Scheidt & Bachmann cloud is all you need. Within the cloud corner on the stand visitors can learn all about the various cloud solutions either on a desktop PC, a notebook or even on a tablet computer. New dispenser generation Scheidt & Bachmann introduce a new dispenser generation during UnitiExpo. The latest model was not only given a new look. The design comprises also a new dispenser computer, improved hose retrieval and new nozzle holders which are the main features that will distinguish this dispenser from former Scheidt & Bachmann dispensers.

Petrotec continues to invest in expanding its team of international technical support. With over 900 co-workers worldwide, Petrotec can boast a truly global reach, and knowledge on a significant scale to support excellence in fuel retailing products

Tatsuno H6 / 6C30

The proverbial ‘Japanese precision’ is very fitting for Tatsuno’s products, whose quality remains unrivalled among gas station equipment manufacturers in the world. Thanks to this, Tatsuno has become the market leader in Asia for gas station-related products. However, hoping to provide its offer of excellent equipment to a wider range of customers, Tatsuno has extended its activities into Europe as well. Through the factories in the Czech Republic and Russia, Tatsuno ensures the availability of its quality-based offers and reliable service throughout the region. Under the corporate motto, “In Innovation, In Reliable Services”, Tatsuno promises to continue its efforts to provide its customers with flawless performance, innovative designs, reliable service and general satisfaction.

Tatsuno is one of the world’s leading producers of fuel service station equipment and accessories. Based on Tatsuno’s fuel oil metering and measurement technology, the company engages in the manufacture and sale of a wide range of fuel supply equipment for gas stations, oil depot terminals, etc., as well as OA equipment for SS business operations. Since its founding in 1911, in a history spanning more than 100 years, Tatsuno has achieved many firsts and breakthroughs in the fuel dispenser market. From the first ever measuring fuel dispenser in Japan or the revolutionary space-saving design of the overhead dispenser fuel station, to the unrivalled precision of today’s meters and pumps, Tatsuno has always provided its customers with a vast array

PETROLWORLD

028

Section 1

Feature > Uniti Expo

029

Subway H4 / 4C69 Subway, one of the world’s most popular quick service restaurant concepts in the world, is continually on the hunt for fuel retailers and convenience store owners interested in opening a franchise, or hosting one on-site. Subway’s flexible and efficient restaurant design, and a distribution system involving no on-site cooking of meats, makes it a popular choice for retailers looking to add value for their customers and boost revenues with minimal fuss.

Wayne H6 / 6C10 Wayne, a GE Energy business, will continue to highlight its Helix range of fuel dispensers at Uniti - in fact, this event will be the first time that the company has shown the entire Helix range to the market. The company’s Helix 6000 is most likely to garner attention, as it is considered the most suitable for the European industry thanks to its recognisable C-style design, the placement of the nozzle on one side and a host of other intelligent features. The Helix 6000, developed in 2013, and shares the enhanced displays, clean look and opportunity for expanded branding of the other Helix products. Aside from dispensers, Wayne will showcase the new Fusion 2 forecourt controller, with new software to give greater control than ever before on fuel retail sites. The company will also showcase free-standing payment terminals for fuel retailers who do not with payment solutions to be integrated with the pump, and its range of tank monitoring systems.

PETROLWORLD

030

Section 2

Oil Company Retail Brand News > Europe: News & Updates

Section 2 031

The Netherlands: Kapitany to Head Global Fuel Retail at Shell

EUROPE HEADLINE NEWS: The Netherlands: Kapitany to Head Global Fuel Retail at Shell

Shell has announced the appointment of Istvan Kapitany as the company’s new Executive Vice President of Global Fuel Retail Kapitany, who will manage the world’s largest single-brand fuel retail network, with over 43,000 commercial units in over 70 countries, has previously held a number of high-level positions at Shell, including the CEO position in Hungary. He also worked as Vice President of Fuel and Lubricants Wholesale for the Americas, and headed fuel retail structures for Shell in Asia, South Africa, Greece, Turkey and Central and Eastern Europe. Shell stations employ around 500,000 people around the world and service more than 10 m customers per day. PETROLWORLD 09042014

FEATURED NEWS: Austria: AWI Bankruptcy Shows Difficult Industry Situation - Association Cyprus: EKO Stations Stage 24-Hour Shutdown Czech Republic: Unipetrol to Retain Paramo - CEO England, UK: Refiners Adopt Diesel Filter Blocking Test Georgia: SOCAR Opens Black Sea Resort Station Hungary: MOL CEO Calls for New Approach From Croatia Neste Rolling Out Neste Futura to Baltic Countries, Russia Poland: PKN Orlen Selects Management Team Portugal: ENI Sells 7% Galp Stake Switzerland: Puma Energy Reports 2013 Results

PETROLWORLD

Austria: AWI Bankruptcy Shows Difficult Industry Situation Association The bankruptcy of fuel retailer AWI shows the precarious position of fuel retailers in Austria, according to fuel industry trade association Chairman Werner Sackle. In a press release, Sackle said that reduced sales volumes and low margins were putting pressure on the sector. “The ever-increasing price competition ensures that the stations can no longer

live in Austria from fuel sales,” he noted. Within Europe, only retailers in the UK enjoy lower margins on fuel sales, the association noted. “The AWI insolvency could also be around 50 small business owners that operate the gas stations,” said Sackle. In the last few years, Sackle remarked, the number of fuel service stations in Austria had fallen to 2,500 sites, while the number of automated sites had increased since 2008 from 200 to 560. Noting the hundreds of job losses that this entails, the association urged

the adoption of an improved legal framework for the sector. “We need a modernisation of the Commercial Code,” insisted Sackle. PETROLWORLD 28032014 Cyprus: EKO Stations Stage 24-Hour Shutdown EKO station owners have held a 24-hour strike, closing their stations in protest at “broken promises” by the company. The shutdown began at 06:00 local time on Wednesday March 12, according to a statement issued by the Petrol Station Owners’ Association. “This decision by EKO station owners became inevitable due to the company’s stance, its broken promises to owners and the need to protect the viability of our businesses,” said the statement. “Closing down our stations was imposed on us and we declare our full intention to escalate measures and action in case the company insists on intransigence,” added the Association, which also apologised to consumers for any inconvenience that may be caused. Cyprus station owners previously planned strike action in January over the granting of licenses, but the action was cancelled following intervention by Interior Minister Eleni Mavrou. PETROLWORLD 13032014

PETROLWORLD

032

Section 2

Oil Company Retail Brand News > Europe: News & Updates

Czech Republic: Unipetrol to Retain Paramo - CEO Unipetrol CEO and Board Chairman Krzysztof Pietrzyk has said that Unipetrol has abandoned plans to sell its loss-making refining subsidiary Paramo. Speaking to local news source CTK, Pietrzyk noted that Unipetrol has restructured Paramo and is exerting maximum effort to make it profitable as soon as possible. Recent steps including the closure of several plants because of weak demand and margins - were reversible if needed, he added, and the company has not sold any of its technology. According to Pietrzyk, Unipetrol Management is now working on a strategy for the firm until 2017, and Paramo will become a key producer and distributor of oils in the Czech Republic and Slovakia within the Unipetrol group. Paramo has been owned by Unipetrol since 2009. PETROLWORLD 04032014 England, UK: Refiners Adopt Diesel Filter Blocking Test The UKPIA, which represents the UK refining industry, has introduced a

new voluntary test of diesel for a gellike substance that has been blamed for a number of filter blockages and breakdowns across the UK. Members have introduced a voluntary Filter Blocking Tendency (FBT) limit of 2.52 for diesel fuel to protect consumers, according to the UKPIA. The breakdowns caused by diesel fuel blocking filters has been more prevalent in the eastern portion of England and Scotland. UKPIA noted that its members do not supply all

of the fuel in the North East, where the problem has been greatest. However, the association said that it is working with the British Standards Institute’s Task Group to investigate the issue. “The parameters of investigative tests, at this stage, are all encompassing, including quality of biodiesel (FAME), base hydrocarbon fuel, how the product is blended and any other additives used,” said the UKPIA. PETROLWORLD 27032014 Georgia: SOCAR Opens Black Sea Resort Station SOCAR Georgia has announced the opening of its latest fuel service station based in the Black Sea Resort Of Kobuleti. The station, located on 109 Rustaveli street, serves the cars running on petrol, diesel fuel and gas. SOCAR’s unicards and energy card loyalty schemes are accepted. 18 employees work at the site, which has been provided with equipment from Tatsuno. SOCAR Georgia Petroleum David Zubatashvili attended a formal opening ceremony for the station. The site is SOCAR’s 109th station in Georgia. PETROLWORLD 08042014

Oil Company Retail Brand News > Europe: News & Updates

former Croatian prime minister Ivo Sanader to obtain management rights over INA. The interview follows renewed charges issued by the Croatian national anti-corruption office, USKOK, which claims that Hernadi issued a bribe of €10m for management control. An enquiry within Hungary has cleared Hernadi of any improper conduct. “We never discussed a subject relating to money or anything illegal,” stressed Hernadi, who also addressed video evidence of a meeting between the two men at a Zagreb restaurant. The video, was used in Sanadar’s trial on corruption charges, with the prosecution claiming that they had exchanged slips of paper. “Mr Sanader asked me for a phone number for a Hungarian public figure because he wanted to call that person. I said I would check if I had that person’s number and I checked it in my phone. I had the number and wrote it down on a piece of paper. It was a simple request with a simple answer. I wrote down the telephone number and put away my phone,” he explained, adding that the trial was “a rather poor discussion if that was the most important evidence.” Hernadi also indicated that MOL may be willing to continue investment in INA with a more amicable approach from the Government. “If the regulatory environment is permanently positive and predictable, in that case MOL is ready to stay in INA. But should the Croatian government make any demands of MOL while at the same time it takes from INA all the resources that would be used for growth, I would say that it should bring people to INA, including partners who will probably be able to cooperate with the Croatian government much better. In that case we are not appropriate partners for that,” he said. PETROLWORLD 10042014 Neste Rolling Out Neste Futura to Baltic Countries, Russia Neste Oil has announced the introduction of Neste Futura fuels, a new family of high-quality fuels, at its retail

sites in the Baltic countries and Russia In a statement announcing the move, Neste noted that its Futura gasoline and diesel are high-quality fuels with extensively tested additive packages. “Neste Futura products are top-tier fuels and will enable us to further differentiate ourselves as a supplier of high-quality products. Neste Futura products are compatible with all vehicles and help keep engines cleaner, resulting in reduced fuel consumption, improved engine performance, and a longer service life. Modern engines place increasingly tough demand on fuels, and Neste Oil’s premium-quality products are designed to meet this challenge,” said Panu Kopra, Vice President for Baltic Rim at Neste Oil. “Neste Futura will be our flagship brand and the market leader in terms of quality in the Baltic countries and Russia.” Neste Oil’s retail network includes 1,027 fuel service stations around the Baltic, including 790 in Finland and 237 in Northwest Russia, Estonia, Latvia, and Lithuania. In Finland, the offering is sold as Neste Gasoline, Neste Diesel, and Neste Pro Diesel. PETROLWORLD 04042015 Poland: PKN Orlen Selects Management Team Jacek Krawiec has been confirmed as President of PKN Orlen for another three-year term by the company’s Supervisory Board. Slawomir Jedrzejczyk was also confirmed as Vice President while Peter Chelminski, Krystian Pater and Marek complete the Management Board for the next three years. Krawiec described the confirmation as a proof of confidence in the direction of the firm, and confirmation that it has taken the right direction in a difficult and variable economic environment. Krawiec also emphasised that the firm’s 2013-17 strategy will only be achieveable through consistency in operations and maintenance developed in recent years, and the stable financial situation of the company. The strategy includes

Section 2 033

an investment of Zl 6.1bn in refining activities and Zl 2.4bn for projects in the retail sector. PETROLWORLD 11032014 Portugal: ENI Sells 7% Galp Stake ENI has announced the sale of a 7% stake in Galp Energia, in a deal worth €702.4m; leaving ENI with a balance stake of 9%. The sale was conducted through an accelerated book-building offered to institutional investors, the company said. ENI will hold approximately 9% of Galp following the transaction. ENI has long indicated that it does not intend to continue its investment in listed companies that it does not control. The company flagged its intention to reduce its shareholding in Galp during 2012. Eni owned just over 33% of Galp before it began selling off its shares. Galp Energia has a diverse range of interests including natural gas as well as upstream and downstream petroleum products. PETROLWORLD 31032014 Switzerland: Puma Energy Reports 2013 Results Puma Energy has released its audited full year results for 2013, including $11.942bn in net sales, $1.158bn in gross profit and $371m in operating profit. The results see Puma Energy reaching a new revenue milestone, while the company said that an expanded geographic footprint in Australia contributed to this performance. A globally integrated supply chain also enhanced profitability. “I am pleased not only with Puma Energy’s performance in 2013, but also with the momentum the Group continues to show as we execute on our strategy of being a globally integrated mid-and downstream energy company,” said Puma Energy CEO Pierre Eladari. PETROLWORLD 21032014

Hungary: MOL CEO Calls for New Approach From Croatia MOL CEO Zsolt Hernadi has called on the Croatian Government to change its approach in its dispute with the company. Speaking to RTL Television, Hernadi denied once again that he had bribed

PETROLWORLD

034

Section 2

Oil Company Retail Brand News > Europe: News & Updates

Section 2 035

ARCHIVE NEWS: VISIT PETROLWORLD.com

Austria: AWI Bankruptcy Shows Difficult Industry Situation - Association

Croatia: US Officials Discuss INA Situation Report

Cyprus: EKO Stations Stage 24-Hour Shutdown

Czech Republic: Unipetrol to Retain Paramo - CEO

England, UK: Delek Planning Roadchef Sale - Report

England, UK: Murco Adopts LED Lighting

Georgia: Rompetrol Names New Director General

Georgia: SOCAR Launches Tbilisi Station

Georgia: SOCAR Opens Black Sea Resort Station

Germany: Conner to Leave Oiltanking

Hungary: MOL CEO Calls for New Approach From Croatia

Hungary: MOL Launches English Language Site on INA

Ireland: Elliott Calls for Naming and Shaming of Illegal Fuel Sellers

Ireland: Phillips 66 Abandons Whitegate Buyer Hunt

Italy: PM to Name New ENI Management

Luxemburg: Kuwait Petroleum Plans First Highway Station

Malta: New Policy Framework for Fuel Retail Proposed

Poland: PKN Orlen Selects Management Team

Portugal: ENI Sells 7% Galp Stake

Romania: Rompetrol Rebranding on the Way

Romania: SOCAR Grows Romania Network

Romania: State to Sell Rompetrol Stake in Summer

Scotland: OFT Seeks Input on Western Isles Supply

Switzerland: Puma Energy Reports 2013 Results

The Netherlands: Shell Promising ‘Capital Discipline’, Restructuring in Downstream

Ukraine: SOCAR Pledges Continued Investment

Wales: Government Task Force to Consider Murco Site

A NEW LOOK

Visit the new PETROLWORLD website & sign up free to become part of the PETROLWORLD Community now

PETROLWORLD

036

Section 2

Oil Company Retail Brand News > North America: News & Updates

Section 2 037

Canada: Bouchard to be ‘Acquirer in Chief’ at Couche-Tard

NORTH AMERICA HEADLINE NEWS: Canada: Bouchard to be ‘Acquirer in Chief’ at Couche-Tard FEATURED NEWS: Canada: Couche Tard Shuffles Top Team USA: Aloha Donates to Typhoon Recovery USA: Chevron Warns on California Carbon Laws USA: CST Plans 100 Sites For Sale USA: Getty Selling Stations in Eight States USA: Higher Costs, Revenues at Casey’s USA: Locals Threaten Lukoil Boycott USA: PMG Purchases 27 Cumberland Sites USA: TA Unveils ‘Diesel Dollars’ Rewards Scheme USA: The Pantry Names New Chairman USA: The Pantry Renews McLane Deal USA: TMT Joins VP Brand

PETROLWORLD

Aliemation Couche-Tard has shed new light on the role that founder Alain Bouchard will adopt after he steps down as President and CEO of the company. Speaking during Couche-Tard’s fiscal third-quarter 2014 conference call, Bouchard revealed that he will focus fulltime on potential acquisitions for the firm. He also added that the move - which sees Brian Hannasch assume the reins of CEO - came at a suitable time for both executives personally. “We have been undertaking discussions for the last couple of years. It is also [because of] the size we are today, with Europe and Asia and North America, we thought it was good timing Canada: Couche Tard Shuffles Top Team Alimentation Couche-Tard has announced that Alain Bouchard, cofounder of the company, has decided to take a new role as founder and executive chairman of the board of directors. Bouchard will step down from his current role as CEO and President on September 24, the date of the next Couche-Tard shareholders’ annual meeting, to be replaced by Chief Operating Officer, Brian Hannasch. Announcing the change, Couche Tard said that the responsibilities of Chief Operating Officer will be shared by the company’s executive management team. Hannasch joined Couche-Tard in 2001, following the company’s acquisition of the Bigfoot convenience store chain. Couche-Tard’s retail network comprises 6,221 convenience stores throughout North America, including 4,724 fuel

for me to evolve into a role more focused on acquisition and M&A activity … and single-site acquisition and small pockets of store acquisition,” said Bouchard. “Brian is ready. He has been with the company for a number of years, and he is well known by the organisation, and is well respected. It’s the right thing to do, and now is the right time,” he added. According to Bouchard, his new role will enable “more grassroots work on big opportunities in markets where we do not have resources on the ground... With my new role, I will be able to spend a few weeks, a month in this market if I want to, if I see the opportunity, so I will meet with industry people, companies that have convenience stores that are maybe not their focus … so I will be better positioned to look at these,” he explained. “It will let me invest more of my time in acquisitions and new industry opportunities, and trust me-there are many out there.” Bouchard was explicit in his intent to be a hands-on Executive Chairman. “I will still be at the office on a daily basis, will take part in the results review every four weeks and the budgeting process. I will also take part in the strategic discussions and serve as a mentor and coach to our next generation of leaders,” he noted. “We have an amazing senior leadership team, and Brian is the right person to lead it. He has been intimately involved in developing our strategy, improving our business, and he has played a pivotal role in the material acquisitions we made over the last 13 years, including our largest and most recent, Statoil Fuel & Retail in Europe. His decisive leadership, his management skills and his deep experience across the entire value chain of our business uniquely qualify him to step into this role. He is well-respected across our industry, he inspires our people and he embodies Couche-Tard’s core values.” PETROLWORLD 20032014

service stations. The company has a presence in 38 states and the District of Columbia, and all 10 provinces in Canada. PETROLWORLD19032014 USA: Aloha Donates to Typhoon Recovery Aloha Petroleum has announced a donation of over $12,000 to the Hawaii State Chapter of the American Red Cross to support typhoon recovery efforts in the Philippines. The company matched funds collected over a two-month period through its statewide customer collection canister programme. Aloha Petroleum has used its collection canister program to support dozens of non-profit organisations including the March of Dimes, Aloha Harvest, American Heart Association, and most recently, Big Brothers Big Sisters.

“We are so grateful for the generosity of Aloha Petroleum and its customers in helping those affected by Typhoon Haiyan,” said Hawaii Red Cross CEO Coralie Matayoshi. “We’re happy that, through our customers’ kokua and generosity, we are able to contribute to this effort that is helping victims and their families to get back on their feet,” remarked Richard Parry, president and CEO of Aloha Petroleum. PETROLWORLD 28032014

PETROLWORLD

038

Section 2

Oil Company Retail Brand News > North America: News & Updates

USA: Chevron Warns on California Carbon Laws Chevron has warned that a bill imposing a carbon permit system on all California distributors of transportation fuels will hurt the state’s economy and make it too expensive to operate in the downstream sector. Speaking at the company’s annual investor day, refining and chemical chief Michael Wirth cited a Boston Consulting Group study which estimated the cost of the legislation at over $3.7bn. Chevron runs the two largest refineries in California, where the permit system is being introduced in stages. “It’s a cost, frankly, that Chevron can’t absorb,” he remarked. “No matter how big and successful we are, we can’t absorb that cost. We’d have to pass that onto consumers.” The scheme is set to be introduced to transport fuels next year, and there are no plans for free carbon permits for transportation fuels. According to Boston Consulting Group, the laws would increase the price of California gasoline by 49 cents to $1.83 per gallon by 2020. PETROLWORLD 17032014 USA: CST Plans 100 Sites For Sale CST Brands has announced plans to sell approximately 100 fuel service stations. Announcing the plans, CST said that a majority of the sites could potentially be added to the company’s growing wholesale distribution business in the United States. The 100 sites average more than 3,000 gallons of fuel sales per day, the company said. NRC Realty & Capital Advisors has been appointed to market the properties, which will be listed for sale by the middle of April. PETROLWORLD 07042014 USA: Getty Selling Stations in Eight States Getty Realty has announced plans to sell 16 fuel service stations, along with 29

PETROLWORLD

also grew 11% as Casey’s benefited from a 24-hour opening hours expansion, pizza delivery, and major remodels, while Groceries and other merchandise same-store sales increased 6.5%. PETROLWORLD12032014 USA: Locals Threaten Lukoil Boycott

sites previously used as stations and two other industrial sites, for sale. The sites are located in Connecticut, Illinois, Maine, Massachusetts, New York, North Carolina, Pennsylvania and Rhode Island. Getty has retained NRC Realty & Capital Advisors LLC (NRC) to coordinate the sale. According to the firm, many of the sites for sale are currently being operated by licensees under month-to-month license agreements. Getty Realty owns and leases approximately 1,050 properties nationwide. PETROLWORLD 13082014 USA: Higher Costs, Revenues at Casey’s Casey’s General Stores has reported a 5.1% drop in its fiscal third quarter earnings, dampened by higher costs, though revenue also rose for the fuel and convenience retailer. The profit of $14.7m and revenue of $1.79bn was dampened by a 13% increase in operating expenses through a growth in stores. Casey’s agreed to acquire 24 Stop-n-Go locations in North Dakota and Minnesota during February. Gasoline sales rose 3.8% on a same store bases, with margins improving from 13.8 cents per gallon in Q3 2012 to 14.4 cents per gallon. The prepared food and fountain segment same-store sales

Ukrainian-American activists have organised protests at local Lukoil stations and encouraged a boycott of the company amid ongoing tensions with Russia. “There may be very little we can do as individuals but we can control our dollars,” said Andrij Baran, President of the Capital District Branch of the Ukrainian Congress Committee of America. In a press release advocating the boycot, the organisation claims that Lukoil “sends American dollars back to despotic Russia” and “fund[s] Russia’s war machine.” Lukoil did not officially comment on the threatened boycott. Lukoil North America, an indirect wholly-owned subsidiary of OAO Lukoil, supports charities and non-profit organizations including Alex’s Lemonade Stand, Eastern State Penitentiary Foundation and United States Marine Corps Toys for Tots Drive. PETROLWORLD 18032014 USA: PMG Purchases 27 Cumberland Sites Cumberland Farms has announced the sale of 27 fuel service stations to the Petroleum Marketing Group (PMG), in a move that will sharpen the firm’s focus on New York, New England and Florida. The stations, located in New Jersey, Delaware and Pennsylvania, will be operated by PMG, with the company seeking to retain all workers. The acquisition follows an April 2013 deal which made PMG the area developer for the Circle K brand in key areas of New Jersey, and the opening of the first Circle K brand store in Monmouth Junction during February 2014. Financial details of the transaction were not disclosed. “As part of the agreement, driven by Cumberland Farms’ commitment to its employees, team members working in these stores will have the opportunity to continue employment with PMG, which plans to continue operating these locations as convenience stores,” said Cumberland Farms spokesperson Derek Beckwith.

Oil Company Retail Brand News > North America: News & Updates

“The company’s strategic plan is to continue its operations and growth in the New York, New England and Florida markets.” PETROLWORLD 10032014 USA: TA Unveils ‘Diesel Dollars’ Rewards Scheme TravelCenters of America has announced the introduction of a new ‘Diesel Dollars’ rewards programme” at its TA® and Petro Stopping Centers® travel centres. The scheme will offer customers a varied range of ‘diesel dollars’ based on the total volume of diesel fuel purchased at the company’s outlets for the posted cash or credit retail price in any calendar month. to register their purchases, drivers must swipe or present their UltraONE® Rewards card at the time of purchase. The more gallons a driver purchases in a particular calendar month, the higher their Diesel Dollars rewards. Customers buying between 500 and 999 gallons per month will earn a 20 Diesel Dollar reward, rising to 45 if a customer buys 1,000 to 1,499 gallons and 85 for those buying over 1,500 gallons per month. Diesel Dollars can be used towards the purchase of diesel fuel at participating locations. The Diesel Dollars programme is an added benefit for UltraONE Members, who will still receive all of their familiar UltraONE program benefits, the company said. These include complimentary shower credits with minimum fuel and truck service purchases, special offer coupons, member pricing discounts in stores and free access to StayFit fitness rooms.

“We are always looking for ways to make the lives of our professional driver customers a little better,” said TravelCentres CEO and President Tom O’Brien. “The Diesel Dollars program gives drivers the opportunity for increased earnings power on their fuel purchases, helping them to keep more money in their pocket.” PETROLWORLD 01042014 USA: The Pantry Names New Chairman The Pantry has announced the election of Thomas W. “Tad” Dickson, former Chairman and Chief Executive Officer of Harris Teeter Supermarkets, as its new Chairman of the Board. Dickson, whose appointment is effective April 2, replaces Edwin J. Holman, who held the position from September 2009. He headed Harris Teeter, a leading regional supermarket chain in the South-Eastern and mid-Atlantic regions, from February 1997 up to the company’s sale to The Kroger Company in January 2014. The development follows the recent election of a new board at The Pantry, signalling a change of direction after a campaign by activist investor groups. The Pantry operates 1,537 convenience stores and fuel service stations in 13 states under a range of brands, with Kangaroo Express as its main operating banner. PETROLWORLD08042014 USA: The Pantry Renews McLane Deal The Pantry has agreed a new distribution services deal with McLane Co., the company has revealed. In a filing with the U.S. Securities & Exchange Commission (SEC), the company said that the deal will become effective after certain internal system changes required by McLane are implemented. It will replace a previous distribution service agreement adopted in 2008, and remain in effect until the end of 2019 unless terminated sooner. During 2013, The Pantry purchased 56% of its merchandise from McLane. The companies expect the figure to remain steady over the lifetime of the agreement. McLane provides grocery and foodservice supply chain solutions for convenience stores, mass merchants, drug stores and chain restaurants throughout the United States. PETROLWORLD 02042014

Section 2 039

USA: TMT Joins VP Brand VP Racing Fuels has added TMT, a fuel distributor and retailer in Texas, to its retail brand partnership programme. TMT operates 14 convenience stores and provides wholesale distribution to sites in the Dallas/Fort Worth area. Nine fuel service stations will rebrand following the new agreement. TMT President Mike Frank said that the company was extremely excited. “My decision to go with the VP retail brand was easy. VP gives me the ability to separate my business from the competition and be unique in many ways,” he said. “First, VP offers a professional yet edgy image for my stations in a market where everyone is the same and no one stands out. I believe being different is important, as you can plainly see at the Whip In where our ‘Dick’s Succulent Chicken’ restaurant is located,” he added. “Secondly, because VP is well known by racers and performance enthusiasts nationwide, my stores become a magnet for fresh new business,” Frank also spoke of the improved margins in key areas offered by the programme. “The VP branded program focuses on reducing my expenses associated with fuel purchasing and credit card processing. Creating higher margins in these two areas are critical elements to the success of TMT Inc. The VP retail brand puts my business in the best position to compete at the highest level!” Bryan Noonen, Regional Brand Manager at VP Racing Fuels, enthusiastically welcomed TMT to the growing VP Racing Fuels brand Family. “This newly forged relationship is the first step in VP’s growth plan in the D/FW area. The partnership anchors a total of nine VPbranded locations and gives VP instant credibility in the highly competitive D/FW fuel market.” PETROLWORLD 27032014

PETROLWORLD

040

Section 2

Oil Company Retail Brand News > North America: News & Updates

041

ARCHIVE NEWS: VISIT PETROLWORLD.com

Canada: Couche Tard Shuffles Top Team

Canada/USA: Pilot Adds Six More sites

USA: 5m Gallons of Exxon Fuel Contaminated, Says Official

USA: 7-Eleven Puts 72 Sites For Sale

USA: AFPM Attacks Tier 3 Standards Move

USA: Aloha Donates to Typhoon Recovery

USA: Aloha Marketing Campaign Wins AMA Recognition

USA: Aloha Petroleum Gets Incentives for Energy Efficiency

USA: Atlas Divests ‘Earth Market’ Sites

USA: Atlas Oil Advises on Fueling Best Practices

USA: BP Plans Rockies Investment

USA: Casey’s Announces Distribution Site Details

USA: Casey’s Sees Stop-n-Go Deal as “Springboard”

USA: Chevron Warns on California Carbon Laws

USA: CHS Targets Improved Fuel Supplies

USA: CITGO Honours Outstanding Employees

USA: CITGO Provides Transport Fuel for Mississipi Programme

USA: CST Selling 100 Sites

USA: Detroit Requires Better Security for SelfServe Sites

USA: Empire Agrees Georgia Oil Takeover

USA: Empire Petroleum Acquires King Fuels Contracts

USA: Energy Transfer Partners Announces Susser Acquisition

USA: ExxonMobil Launches New Retail Technology Platform

USA: Fuel Sales Rise 120% at Tesoro

USA: Palm Beach Passes Sign Clarity Rule

USA: Fleet Organisations Concerned on Invoice Accuracy

USA: Florida Lawmaker Proposes Disability Assistance Bill

USA: Furey to Head Operations at Unitec

USA: Getty Selling Stations in Eight States

USA: Higher Costs, Revenues at Casey’s

USA: Husky Launches Mobile Responsive Site

USA: Lehigh Purchasing Chicago Wholesale Business

USA: Locals Threaten Lukoil Boycott

USA: Love’s Agrees Goodyear Deal

USA: Management, Dissidents, Make Cases to Pantry Shareholders

USA: Mapco Changes Leadership

USA: Marathon To Grow Loyalty Scheme

USA: Matt Nall to Lead Southeast Sales for MacNeill

USA: Mobil Returns to New Jersey

USA: NACS Comments on Swipe Fee Ruling

USA: NACS Sees Diesel, Alternative Fuels, Rising in Future of Fuels Report

USA: NASCAR Adopts Mobil 1

USA: New C-Store Group Promises Grassroots Action

USA: OPW Enhances FSC3000ô Flexibility

USA: Pantry Board Defends Strategy

USA: Pantry Investors Seek Voice on Board

USA: Pantry Shareholders Support New Board

USA: PEI Recruits Performance Ink to Priority Club

USA: Pilot Seeks Lawsuit Consolidation

USA: PMG Purchases 27 Cumberland Sites

USA: RaceTrac Reports Data Breach

USA: REG Launches OilBased Division

USA: Shell Customer Wins Free Fuel For A Year

USA: Shell Showcases Fuel Rewards at Chicago Auto Show

USA: SpartanNash Adopts KSS Retail

USA: SpeedyQ Adopts PriceAdvantage

USA: Spinx Names Storti as President

USA: Station Owners Urged to Be Vigilant on Credit Card Skimming

USA: Susser Plans SacN-Pac Integration

USA: TA Unveils ëDiesel Dollarsí Rewards Scheme

USA: The Pantry Names New Chairman

USA: The Pantry Renews McLane Deal

USA: TMT Joins VP Brand

USA: TravelCenters of America Releases TruckSmartÆ Update

USA: TravelCentres of America Rolling Out Free Wi-Fi

PETROLWORLD

042

Section 2

Oil Company Retail Brand News > Asia: News & Updates

Section 2 043

China: Sinopec Outlines Sales Plans

ASIA HEADLINE NEWS: China: Sinopec Outlines Sales Plans FEATURED NEWS:

Sinopec has revealed more details of its plans to sell 30% of its marketing operations this year. The company has targeted a sale by the third quarter, and intends to use the proceeds from a sale to cut debt, fund shale gas development and fuel quality upgrade programmes. Chairman Fu Chengyu said that the fuel distribution arm to manage 30,500 fuel service stations will be established as a separate company. “We want to bring out the hidden value of the business,” he remarked. “By spinning it off as an independent entity, its decision-making and operations can become more market-oriented.” Sinopec estimates its fuel distribution assets to be worth 300bn yuan, but Fu said that the company needs to confirm this through an independent valuation exercise. He said that strategic investors would be given priority in the initial round of fund-raising, explaining that they could add value by providing expertise to run the company’s fuel-station network more efficiently and boost non-fuel sales. PETROLWORLD 26032014 Australia: BP Confirms Refinery Closure

Australia: BP Confirms Refinery Closure Australia: Caltex Launches New App India: Hindustan Petroleum Unveils Club HP Star Indonesia: Pertamina Rolling Out Monitoring System Malaysia: BHPetrol Plans 150 More Stations Malaysia: Petron Marks First Newly-Built Malaysia Station New Zealand: Z Reaches Money-Saving Fuel Quality Agreement Pakistan: Fuel Marketers to Assist Pakistan Customs Philippines: SEAOIL Opens Major Davao Depot Sri Lanka: Ceylon Plans New Storage Facility

PETROLWORLD

BP has announced that it will close its Bulwer Island refinery in Brisbane, citing the “insurmountable challenge” of competing with large refineries in Asia. “Global refining capacity is shifting to service the energy growth areas of the globe and is doing so with very large port-based refineries,” explained Andy Holmes, President of BP Australasia. The closure will lead to the loss of some 350 jobs, the company added. BP will initially take product from Caltex’s Lytton refinery nearby, but will keep the storage units at Bulwer Island on “care and maintenance. The closure of the Bulwer Island refinery will halve the number of domestic refineries from eight in 2003 to just four today. The company is considering converting the refinery, which dates back to the 1960s and has a capacity to produce 102,000 bpd, into a multi-product import terminal. “We have concluded that the best option for strengthening BP’s longterm supply position in the east coast retail and commercial fuels markets

is to purchase product from other refineries,” said Holmes. PETROLWORLD 03042014 Australia: Caltex Launches New App Caltex Australia has unveiled a new smartphone app offering details of the company’s nearly 200 truck refuelling outlets. The app, dubbed the National Truck Network (NTN), identifies outlet locations and provides information about each of them in one spot. All sites on the app accept Caltex StarCard and feature high-flow diesel pumps, typically operating 24 hours a day. “Caltex is very aware that transport customers want easy access to the latest products and services – that is why many sites in the NTN will also include premium diesel and diesel exhaust fluid, also known as AdBlue,” said spokesman Michael Ridley-Smith. “We also recognise that there are tangible costs associated with every minute of time occupied and every kilometre driven – drivers don’t have the time and their

employers don’t have the resources to have trucks driving to different locations to access the variety of products and services they require,” he added. “We developed the new smartphone app as we want drivers to have all the information they need about the key products and services at every location in Caltex’s leading network of truck refuelling sites so they can choose the most convenient site at which to refuel and access the other facilities before safely continuing their journey.” PETROLWORLD 07042014 India: Hindustan Petroleum Unveils Club HP Star Hindustan Petroleum has unveiled ‘Club HP Star’, a new fuel retail brand, to the Indian market. The first station was opened by HPCL Chairman and Managing Director Nishi Vasudeva in Mumbai. The ‘Club HP Star’ brand is a premium version of Club HP, the flagship brand for HPCL’s retail outlets. “All the ‘Club HP Star’ retail outlets shall be fully automated where electronic billing through automated systems along with the assurance of ‘Good Fuel Promise’ are guaranteed,” said the company in a statement. The process has been introduced following intensive customer surveys in various markets which identified ‘quick service’ as a key customer need.

PETROLWORLD

044

Section 2

Oil Company Retail Brand News > Asia: News & Updates

Time and motion studies were carried out at various stations across the country, the company revealed, as it sought to develop a robust process to reduce the fuelling time and the time taken for providing other services like free air. “The entire ‘Club HP Star’ brand revolves around [the] value proposition of ‘Time is Money’ in addition to the promise of ‘Quality and Quantity’,” said Hindustan Petroleum. PETROLWORLD 31032014 Indonesia: Pertamina Rolling Out Monitoring System PT Pertamina has announced that a new system using radio-frequency identification (RFID) technology to monitor consumption of subsidised fuel is in operation at 17 fuel service stations. Ali Mundakir, Vice President of Corporate Communications at Pertamina, said that the company will pay a fee for the fuel distributed to PT Inti (Persero), which provides the technology. “We will implement the RFID programme in stages, starting with 17 gas stations in Jakarta,” he explained, adding that the number of stations operating under the system will increase gradually. Pertamina, which distributes an average of 15 kilolitres per day of subsidised fuel at its Jakarta stations, aims to expand the RFID programme to cover 274 fuel service stations and 15m vehicles. The programme, initiated by the Energy and Mineral Resources Ministry, aims to monitor and eventually contain the consumption of subsidised fuel, which has placed considerable strain on public finances in recent years. PETROLWORLD 08042014 Malaysia: BHPetrol Plans 150 More Stations BHPetrol has announced plans to open 150 additional fuel service stations over the next three years. The company, a subsidiary of Boustead Holdings Bhd, currently operates a network of 350 sites. Speaking to reporters, Boustead Holdings Deputy Chairman and Group Managing Director Tan Sri Lodin Wok Kamaruddin said that the BHPetrol had done well to emerge as the country’s third most popular brand “It’s quite an achievement for a new brand,” he remarked. Lodin Wok Kamaruddin also revealed that

PETROLWORLD

Boustead Holdings tried to make a bid for Esso fuel retail network in Malaysia, but was unsuccessful. PETROLWORLD 17032014 Malaysia: Petron Marks First NewlyBuilt Malaysia Station The first new-build fuel service station of Petron Corporation in Malaysia has been opened by President Benigno Aquino III. The site, located in Jalan Selayang, was the first built by Petron from scratch since the firm acquired Petron Malaysia Refining and Marketing Bhd., Petron Fuel International Sdn Bhd. and Petron Oil (M) Sdn Bhd in 2012. “We are privileged and deeply honoured by the visit of His Excellency Philippine President Benigno S. Aquino III. His visit inspires us to create more value for our customers and stakeholders while playing a major role in serving the energy needs of Malaysia,” said Ramon Ang, Petron’s Chairman and Chief Executive. The company has plans to invest between $1bn and $2bn in its Malaysian arm over the next ten years. Petron Malaysia has successfully completed the re-imaging and upgrading of 300 stations to the Petron brand, in a programme set for completion by the end of this year. “We are confident of our prospects in Malaysia with its dynamic and progressive economy. We will continue to deliberately grow our business here to enhance our competitiveness,” said Ang. “There is a guarantee on return on investment. So even if the price of oil goes up or down, you still have a guaranteed return.” PETROLWORLD 10032014 New Zealand: Z Reaches Money-Saving Fuel Quality Agreement Z Energy has announced an agreement with BP and the operators of the

Marsden Point oil refinery to coordinate the quality of crude oil the refinery processes, which it said will save NZ$50 m of capital expenditure on new storage facilities at Tauranga and Lyttelton. Announcing the agreement, Chief Executive Mike Bennetts said that the agreement allows “more efficient use of Refining NZ (and) reduces Z’s procurement costs without committing capital.” He noted that the company has been investigating an investment of up to NZ$50m on building larger import terminals at Mount Maunganui and Lyttelton to lower the costs of refined fuel imports. “While the consents for these new import terminals remain in place and represent a valuable option for Z, being able to secure cost reductions through more efficient operation of Refining NZ removes the need to commit that NZ$50m of capital,” he explained. Regining NZ Chief Executive Sjoerd Post also welcomed the deal. “The new arrangement highlights the commercial benefits from running the refinery more efficiently with an optimal crude ‘diet’ and the change in customer expectations with the increasing availability of competitively priced products from Asia-Pacific refiners,” he remarked. PETROLWORLD 06032014 Pakistan: Fuel Marketers to Assist Pakistan Customs Pakistan State Oil (PSO) and Shell have confirmed that they will help Pakistani Customs in building capacity for its laboratory to curb smuggling. The announcement follows a meeting between Customs officials, representatives of oil marketing companies and the Oil Companies Advisory Committee (OCAC) to discuss means and measures to curb smuggling of petroleum products. Oil companies revealed that approximately 1m litres of smuggled diesel (HSD) entered the country every day and agreed to share intelligence reports regarding routes, means and the stations involved in the practice. The companies were also asked to provide a list of all their registered outlets in Karachi, a list of all the vehicles registered with them and intelligence information pertaining to illegal outlets and dumping places of smuggled petroleum products. Authorities briefed the firms on plans to destroy 61 illegal stations, and agreed on the need to work closely with the

Oil Company Retail Brand News > Asia: News & Updates

industry. Companies agreed to help Customs in capacity-building regarding improving standards in hydrocarbon laboratory testing and related equipment improvement. PETROLWORLD 19032014

stations in the next four years, investing approximately P1bn. SEAOIL operates 10 oil depots and terminals in the Philippines, with a combined storage capacity of 160m litres. PETROLWORLD 14032014

Philippines: SEAOIL Opens Major Davao Depot

Sri Lanka: Ceylon Plans New Storage Facility

SEAOIL Philippines has officially opened a 41m litre oil depot in Davao, and progressively double the capacity of its storage facility in Southern Philippines. The P500m facility is the largest in Southern Mindanao, serving 200 fuel service stations with a 41m litre capacity. “We invested P500 million for this depot alone,” Chief Operating Officer Stephen Yu said. “We saw the need for the construction of a new liquid bulk storage terminal to serve the growing demand for fuel products in the Southern Mindanao area,” he said. The company intends to build a hundred

Section 2 045

spokesperson, CPSTL also has plans to construct six 10,000 tonne capacity storage tanks in Kolonnawa and four tanks in Muthurajawela. PETROLWORLD 13082014

ARCHIVE NEWS: VISIT PETROLWORLD.com

Australia: 7-Eleven Enters West Australian Market

Australia: Caltex Launches New App

Australia: Court Finds that Woolworths Breached Fuel Dockets Deal

Australia: Shell Sells Downstream Assets to Vitol

Australia: Woolworths Chief Defends Pump Discounts

China: Sinopec Outlines Sales Plans

India: AP Dealers Cancel Strike

India: Bharat Predicting Diesel Deregulation Within 15 months

India: Hindustan Petroleum Unveils Club HP Star

India: Nishi Vasudeva Takes Hindustan Petroleum Reins

India: Numaligarh to Drive Bharat in Bangladesh, Nepal

India: Stations Consider Voter Discount

Indonesia: Pertamina Lubricants Plans Lubricant Factories

Indonesia: Pertamina Rolling Out Monitoring System

Indonesia: Puma to Buy Medco Distribution Unit

Malaysia: BHPetrol Plans 150 More Stations

Malaysia: Lubs to Drive UMW Growth

Malaysia: Perlis Authorities Cracking Down on Smuggling

Malaysia: Petron Marks First Newly-Build Malaysia Station

Malaysia: Shell Unveils Helix Ultra

New Zealand: Colliers to Provide Property Management to Z

New Zealand: Z Reaches Money-Saving Fuel Quality Agreement

New Zealand: Z Reports Positive Reaction to SelfService

Pakistan: Fuel Marketers to Assist Pakistan Customs

Pakistan: Shell Retail network Grows

Philippines: Petron Achieves ‘Green’ Certification at 20 Sites

Philippines: Net Income Grows at Petron

Philippines: Petronas Dagangan Promises More Investment

Sri Lanka: CPC Cuts Losses in 2013

Sri Lanka: Lubricant Market Stagnant in 2013, Says Chevron

Thailand: PTT Targets 200 More ASEAN Stations

China: BP Cancels Refinery Plan

New Zealand: Z Purchases Cardplus Business

Philippines: Phoenix Targets 100 New Stations

Thailand: Energy Ministry Urges Preparation for Bangkok shutdown

PETROLWORLD

Oil Company Retail Brand News > Africa: News & Updates

Section 2 047

AFRICA HEADLINE NEWS: Vivo, Airtel, Agree Regional Distribution Deal FEATURED NEWS: Cameroon: Engen Lubs Distributor Opens 11th Station Kenya: Regulator Shuts Down Stations for Adulterated Fuel Morocco: Wayne to Supply Dispensers, Automation, at 160 PETROM Sites Nigeria: DRP shuts 30 Stations for Overcharging

SPECIAL PETROLWORLD MAGAZINE SUBSCRIPTION OFFER

Nigeria: MRS Oil Enjoys Major Profit Boost Uganda: Vivo Unveils Mobile Testing Lab Zambia: Puma Names New CEO

To celebrate the new look PETROLWORLD website, we are offering a unique subscription offer for a limited period.

Zimbabwe: Total Plans Network Rebrand

SPECIAL OFFER PRICE: €115 OR US$160 Subscribe to the PETROLWORLD Magazine NOW for €95 + €20 postage charge, totalling = €115 (or US$160) Special offer includes user name and password to the online PETROLWORLD Archives (valued €365) (This special offer price will be guaranteed for three years to those that subscribe and complete payment for the period of the offer.)

FOR MORE INFORMATION ON SUBSCRIPTIONS PETROLWORLD

email subsciptions@petrolworld.com or call +353 402 305 00

PETROLWORLD

048

Section 2

Oil Company Retail Brand News > Africa: News & Updates

Vivo, Airtel, Agree Regional Distribution Deal Vivo Energy and Airtel Money have announced a new distribution agreement which will see Airtel Money agent points opening across Vivo’s network of Shell fuel service stations in Uganda, Ghana, Burkina Faso, Madagascar and Kenya. Shell service stations will be ‘Cash In and Cash Out’ points for Airtel Money customers, while Airtel Money will be an accepted mode of payment in all Shell Service Stations. Shell service stations will stock and sell Airtel airtime, the companies announced. Vivo Energy operates 1,430 Shell branded fuel service stations in 15 countries across Africa. Airtel Money is operational in 15 countries in Africa, with over 27m registered customers and over 250,000 registered agents. PETROLWORLD 09042014 Cameroon: Engen Lubs Distributor Opens 11th Station Blessing Petroleum, the official Cameroonian lubricants distributor for Engen, has opened its 11th fuel service station in the country. The move extends Engen automotive oils

PETROLWORLD

to the Western region for the first time, the companies noted in a statement. Yapaki Service Station, situated in Dibombari on national road number 5, offers 24-hour refuelling as well as engine services and oil changes between 0600 and 1900. “We started our business in 2010

and a year later we had opened four stations. Over the past two years, we have grown our network to 11 stations,” noted Blessing Managing Director Paul Dengoue. “ There is no doubt that the petroleum industry in Cameroon is showing signs of growth. With the brand new site we will meet an increasing

Oil Company Retail Brand News > Africa: News & Updates

In an advertisement placed on national newspapers, the ERC confirmed the shutdown of stations, which were scattered across the country. Several sites in Nairobi, including Oilcom Thika Road Station in Roysambu, Shell Bidii Station and Hass in Eastleigh and Mamba Service Station in Industrial Area were closed, as well as sites in Kisumu, Kakamega, Embu, Meru and Kirinyaga. The move follows a country-wide monitoring exercise conducted by the ERC along with the Kenya Revenue Authority (KRA), Kenya Bureau of Standards (KEBS) and other government agencies. As well as the suspension of their licenses, operators found selling adulterated fuel were required to pay penalties and taxes before re-opening would be considered. The ERC said that it and other government agencies shall continue to carry out the monitoring of petroleum outlets. PETROLWORLD 03032014 Morocco: Wayne to Supply Dispensers, Automation, at 160 PETROM Sites Wayne has announced that it will deploy the Wayne FusionTM Forecourt System Including Wayne™ Automatic Tank Gauge (ATG) to 160 fuel service stations in Morocco under the PETROM brand. In addition to unifying every aspect of equipment and operations management at the stations, the agreement will mark Northern Africa’s first installation of Wayne Helix™ fuel dispensers with the Wayne iX Media™ platform, which will further enhance the PETROM customer experience. Meanwhile, Wayne added, the Automatic Tank Gauge (ATG) system will enable full-scale operational control and monitoring across the global oil and gas provider’s entire network of Moroccan fuelling sites. PETROM plans to integrate the Fusion forecourt system with ATG to more than 250 sites in Morocco by the end of the year. “With its strong brand reputation and high-quality and reliable product and technology solutions, Wayne possesses the attributes we look for in a regional manufacturer,” said PETROM CIO Issam Alloul. “Wayne is a trusted provider with the automation capabilities we need to manage day-today operations across a large number of sites,” he added. “As a leading provider of both highquality dispensers and advanced forecourt technologies, Wayne is uniquely positioned to serve the needs

of the growing Northern African region,” said Jaouhar Jamoussi, Sales Director for Middle East, North Africa, and Turkey at Wayne. “PETROM understands the positive impact that technology adoption will have on its processes and customers, and its integration of the Fusion forecourt system will improve daily operations through accurate, realtime control over its fuel networks.” PETROLWORLD 25022014 Nigeria: DRP shuts 30 Stations for Overcharging The Department of Petroleum Resources (DRP) has announced the closure of 30 fuel service stations located in Anambra, Ebonyi and Enugu states for selling petroleum products above the official price of N97 per litre. Speaking to the News Agency of Nigeria (NAN), the DPR’s Operations Controller in Enugu Peter Ijeh said that the sites were selling fuel at between N120 and N150 per litre. He noted that the department would not hesitate to involve law enforcement agencies in such cases. “For those who violate our seal, we have written to the Commissioner of Police to assist us in the enforcement drive. We have cases that we are dealing with now and we have asked the commissioner of police to help us address them by arresting the management of those stations,” he remarked. “My people are out there monitoring and sealing off stations that are not complying. We have a manifest that we use in monitoring the quantity of petroleum products that are being supplied to states that we are in charge of. As far as I am concerned, the price of premium motor spirit and diesel have not changed.” PETROLWORLD 12032014 Nigeria: MRS Oil Enjoys Major Profit Boost Nigerian marketer MRS Oil has reported a major increase in its pre-tax profit for 2013, which more than trebled from N378.75m to N1.41bn ($8.55m). The company said that revenue grew from N79.72bn in 2012 to N87.78bn during the period, a 10.11% increase. A N.75 dividend will be issued to shareholders on August 8. MRS acquired Chevron’s downstream assets in Nigeria during 2009. In addition to its fuel retail business, the company supplies aviation fuelling services, distributing approximately 50m gallons

Section 2 049

annually at airports across west Africa. PETROLWORLD 02042014 Uganda: Vivo Unveils Mobile Testing Lab Vivo Energy has introduced a new mobile fuel testing laboratory as it seeks to curb the spread of unadulterated fuel in the Ugandan market. Vivo Energy MD Hans Paulsen unveiled the lab, examining samples of pure fuel and fuel contaminated with water. He was joined by URA Commissioner of Customs, Richard Kamajugo. The Ugandan market has been dogged by the problem of certain dealers mixing kerosene with diesel or petrol to improve profitability. As a result, Vivo Energy said, the company’s mobile fuel-testing laboratory has been equipped with tools to conduct random on-site preliminary tests to detect any tampering. The mobile testing lab is equipped to produce key test results within 30 minutes. “It helps guarantee the quality of the products that eventually goes into customers’ tanks,” said Paulson. The company’s initiative was praised by dr. Ben Manyindo, the Executive Director of National Bureau of Standards. “It greatly enhances the work that Vivo Energy is already doing and provides additional support to the work UNBS is also doing with our mobile vans. Vivo Energy works in partnership with us to offer support,” he remarked. “They have also opened up their laboratory for us to conduct further tests whenever the need arises. Apart from the UNBS lab, Vivo Energy is the only oil company with a modern fuel testing lab in the country.” PETROLWORLD 20032014 Zambia: Puma Names New CEO Puma Energy Zambia has announced the appointment of a new Chief Executive Officer, Sidy Bane. Bane has over 17 years of experience in the oil industry, including an 11-year stint with Exon Mobil before joining Puma Energy. He has held key positions with Puma in Congo Brazaville, Angola and South Africa, where he was in charge of the Retail Segment for the Africa Region. Most recently, Bane served as Managing Director of Puma Energy Namibia. His predecessor, Mr Fumu Mondoloka, stepped down from the company to pursue other interests. Puma Zambia thanked Mondoloka for his valuable

PETROLWORLD

050

Section 2

Oil Company Retail Brand News > Africa: News & Updates

need in the region for a full range of quality lubricants for passenger cars, trucks, transit vans and motorcycles,” he added. Aside from automotive oils, Blessing Petroleum also markets Engen’s universal tractor oils, gear and transmission oils, industrial oils, marine oils, greases, and utility products such as brake fluids. PETROLWORLD 10042014 Kenya: Regulator Shuts Down Stations for Adulterated Fuel The Energy Regulatory Commission (ERC) has revealed that it shut down 16 fuel service stations between October 2013 and January of this year for allegedly selling adulterated petroleum products. In an advertisement placed on national newspapers, the ERC confirmed the shutdown of stations, which were scattered across the country. Several sites in Nairobi, including Oilcom Thika Road Station in Roysambu, Shell Bidii Station and Hass in Eastleigh and Mamba Service Station in Industrial Area were closed, as well as sites in Kisumu, Kakamega, Embu, Meru and Kirinyaga. The move follows a country-wide monitoring exercise conducted by the ERC along with the Kenya Revenue Authority (KRA), Kenya Bureau of Standards (KEBS) and other government agencies. As well as the suspension of their licenses, operators found selling adulterated fuel were required to pay penalties and taxes before re-opening would be considered. The ERC said that it and other government agencies shall continue to carry out the monitoring of petroleum outlets. PETROLWORLD 03032014 Morocco: Wayne to Supply Dispensers, Automation, at 160 PETROM Sites Wayne has announced that it will deploy the Wayne FusionTM Forecourt System Including Wayne™ Automatic Tank Gauge (ATG) to 160 fuel service stations in Morocco under the PETROM brand. In addition to unifying every aspect of equipment and operations management at the stations, the agreement will mark Northern Africa’s first installation of Wayne Helix™ fuel dispensers with the Wayne iX Media™ platform, which will further enhance the PETROM customer experience. Meanwhile, Wayne added,

PETROLWORLD

the Automatic Tank Gauge (ATG) system will enable full-scale operational control and monitoring across the global oil and gas provider’s entire network of Moroccan fuelling sites. PETROM plans to integrate the Fusion forecourt system with ATG to more than 250 sites in Morocco by the end of the year. “With its strong brand reputation and high-quality and reliable product and technology solutions, Wayne possesses the attributes we look for in a regional manufacturer,” said PETROM CIO Issam Alloul. “Wayne is a trusted provider with the automation capabilities we need to manage day-today operations across a large number of sites,” he added. “As a leading provider of both highquality dispensers and advanced forecourt technologies, Wayne is uniquely positioned to serve the needs of the growing Northern African region,” said Jaouhar Jamoussi, Sales Director for Middle East, North Africa, and Turkey at Wayne. “PETROM understands the positive impact that technology adoption will have on its processes and customers, and its integration of the Fusion forecourt system will improve daily operations through accurate, realtime control over its fuel networks.” PETROLWORLD 25022014 Nigeria: DRP shuts 30 Stations for Overcharging The Department of Petroleum Resources (DRP) has announced the closure of 30 fuel service stations located in Anambra, Ebonyi and Enugu states for selling petroleum products above the official price of N97 per litre. Speaking to the News Agency of Nigeria (NAN), the DPR’s Operations Controller in Enugu Peter Ijeh said that the sites were selling fuel at between N120 and N150 per litre. He noted that the department would not hesitate to involve law enforcement agencies in such cases. “For those who violate our seal, we have written to the Commissioner of Police to assist us in the enforcement drive. We have cases that we are dealing with now and we have asked the commissioner of police to help us address them by arresting the management of those stations,” he remarked. “My people are out there monitoring and sealing off stations that are not complying. We have a manifest that we use in monitoring the quantity of petroleum products that are being supplied to states that we are in charge of. As far as I am concerned, the

price of premium motor spirit and diesel have not changed.” PETROLWORLD 12032014

Oil Company Retail Brand News > Africa: News & Updates

Section 2

a modern fuel testing lab in the country.” PETROLWORLD 20032014 Zambia: Puma Names New CEO

Nigeria: MRS Oil Enjoys Major Profit Boost Nigerian marketer MRS Oil has reported a major increase in its pre-tax profit for 2013, which more than trebled from N378.75m to N1.41bn ($8.55m). The company said that revenue grew from N79.72bn in 2012 to N87.78bn during the period, a 10.11% increase. A N.75 dividend will be issued to shareholders on August 8. MRS acquired Chevron’s downstream assets in Nigeria during 2009. In addition to its fuel retail business, the company supplies aviation fuelling services, distributing approximately 50m gallons annually at airports across west Africa. PETROLWORLD 02042014 Uganda: Vivo Unveils Mobile Testing Lab Vivo Energy has introduced a new mobile fuel testing laboratory as it seeks to curb the spread of unadulterated fuel in the Ugandan market. Vivo Energy MD Hans Paulsen unveiled the lab, examining samples of pure fuel and fuel contaminated with water. He was joined by URA Commissioner of Customs, Richard Kamajugo. The Ugandan market has been dogged by the problem of certain dealers mixing kerosene with diesel or petrol to improve profitability. As a result, Vivo Energy said, the company’s mobile fuel-testing laboratory has been equipped with tools to conduct random on-site preliminary tests to detect any tampering. The mobile testing lab is equipped to produce key test results within 30 minutes. “It helps guarantee the quality of the products that eventually goes into customers’ tanks,” said Paulson. The company’s initiative was praised by dr. Ben Manyindo, the Executive Director of National Bureau of Standards. “It greatly enhances the work that Vivo Energy is already doing and provides additional support to the work UNBS is also doing with our mobile vans. Vivo Energy works in partnership with us to offer support,” he remarked. “They have also opened up their laboratory for us to conduct further tests whenever the need arises. Apart from the UNBS lab, Vivo Energy is the only oil company with

Puma Energy Zambia has announced the appointment of a new Chief Executive Officer, Sidy Bane. Bane has over 17 years of experience in the oil industry, including an 11-year stint with Exon Mobil before joining Puma Energy. He has held key positions with Puma in Congo Brazaville, Angola and South Africa, where he was in charge of the Retail Segment for the Africa Region. Most recently, Bane served as Managing Director of Puma Energy Namibia. His predecessor, Mr Fumu Mondoloka, stepped down from the company to pursue other interests. Puma Zambia thanked Mondoloka for his valuable contribution to the Company during his tenure of office and wished him success in his future endeavours. PETROLWORLD27032014

Zimbabwe: Total Plans Network Rebrand Total Zimbabwe has revealed that it will rebrand and refurbish its fuel retail

network in the coming years. Speaking at the launch of the new concept station, Christian des Closieres, Total’s Executive Vice President for Southern Africa said that the company will invest approximately $10m in the project. He added that the firm is seeking to reinforce its network identity with a resolutely contemporary image, installations that are more energyefficient and sales outlets that blend harmoniously into their environment. Closieres noted that some fuel service stations will not have a total refurbishment carried out, but will have

new colours and new pumps. Attending the event, Zimbabwe’s Minister of Energy and Power Development Dzikamai Mavhaire took the opportunity to reinforce the Government’s ban on unblended fuel. “All fuel dealing companies who continue opposing the Government’s directive to stop selling unleaded petrol are going to face the wrath of the law. It is quite clear that those opposing blended fuel and filling stations still selling unleaded fuel would be prosecuted,” he said. PETROLWORLD 10032014

ARCHIVE NEWS: VISIT PETROLWORLD.com

Cameroon: Engen Lubs Distributor Opens 11th Station

Ghana: GOIL Boosts Investment Budget to Grow Network

Ghana: Vivo Showcases New Retail Format

Kenya: Essar Exit Near Completion

Kenya: KenolKobil Back in Profit

Kenya: Regulator Shuts Down Stations for Adulterated Fuel

Nigeria: DRP shuts 30 Stations for Overcharging

Nigeria: DPR Warns Against Fuel Hoarding

Nigeria: IPMAN Dispute Leading to Station Closures

Nigeria: IPMAN Seeks Downstream Stabilisation

Nigeria: Marketers Threaten Strike After NIPCO Site Closure

Nigeria: Minister Makes Case for Downstream Deregulation

Nigeria: Minister Warns of Marketer Crackdown

Nigeria: MRS Oil Enjoys Major Profit Boost

Nigeria: NIPCO ReOpened as Union Dispute Rumbles On

Nigeria: Oando Runs Lubricant TV Advertising

South Africa: Digicape, Fuel, Help Engen Adopt New Training Programme

South Africa: Drive-Offs Force Pre-pay system

Tanzania: Vodacom, Total, Launch Payment Partnership

UAE: ADNOC Distribution Opens Al Bateen Vehicle Inspection Centre

Uganda: Vivo Unveils Mobile Testing Lab

Vivo, Airtel, Agree Regional Distribution Deal

Zambia: Puma Names New CEO

Zimbabwe: Total Plans Network Rebrand

Zambia: Engen Introduces Dieselube 500

PETROLWORLD

052

Section 2

Oil Company Retail Brand News > Middle East: News & Updates

Section 2 053

UAE: ADNOC Distribution Re-Launches ‘ADNOC Voyager’ Lubricant Range

MIDDLE EAST HEADLINE NEWS: UAE: ADNOC Distribution Re-Launches ‘ADNOC Voyager’ Lubricant Range FEATURED NEWS: Kuwait: KNPC Holds First Open Retiree Meeting Qatar: Woqod Investing in Storage Saudi Arabia: Government Allows Stations to Hand Out Tissue Paper UAE: ADNOC Distribution Opens Al Bateen Vehicle Inspection Centre

ADNOC Distribution has announced the relaunch of its popular ADNOC Voyager lubricant range to the UAE Market. The range now has added value to meet the requirements of a broader range of vehicles and weather conditions, the company said. Lubricants are available across ADNOC Distribution services stations, dealers, distributors and all authorised lubricant change centers for the government and private sectors in the UAE. ADNOC Voyager lubricant offers an advanced formulation of quality based oils and carefully balanced chemical additives that go beyond basic prevention of metal-to-metal contact to form a durable coating around the engine to safeguard against wear, rust and corrosion. The lubricant also enhances engine endurance through its oxidation stability properties that allow engines to perform at high temperatures and for extended hours. “We re-launched the ADNOC VOYAGER range with the aim of filling the gap for high performance lubricant brands and consolidating our leading position in the lubricant market in U.A.E. and beyond. VOYAGER is produced according to the latest international specifications, and is now re-launched with the new and ever-evolving requirements of vehicle users in mind,” noted Khalid Hadi, Vice-President of the Marketing and Corporate Communications Division at ADNOC Distribution. “The lubricant has been tested in high temperatures and with different types of engines to ensure its reliability in different weather conditions and compatibility with all type of vehicles.” PETROLWORLD 31032014

Yemen: Stations Shut Over Diesel, Propane Shortages

“After a quarter century, the company embarked on a new hard task for upgrading and expanding the two refineries through CFP. As well, a new refinery will be built at Al-Zour area, which will be the biggest and most developed refinery in the Gulf region. The two mega projects represent the greater challenge for the Company, and we are sure we shall overcome those challenges,” he remarked. PETROLWORLD 24032014 Qatar: Woqod Investing in Storage

Kuwait: KNPC Holds First Open Retiree Meeting KNPC has held its first meeting for retired employees, thanking the individuals who helped build the company in a ceremony at its head office. “This gathering mirrors our respect and appreciation to the retired employees and their great service to the

PETROLWORLD

Company,” said CEO Mohammed Ghazi Al-Mutairi, opening the event. “This is a great occasion for all employees, especially the retired ones who laid the corner-stones for KNPC success and established the first wholly-national company in the region,” Al-Mutairi spoke of the company’s history since it assumed the responsibility to upgrading Kuwait’s downstream industry in the 1980s.

Qatar Fuel (Woqod) has announced a plan to invest Q65m in its bitumen storage and distribution facilities in Mesaieed. The company said that the facility located at Mesaieed Industrial City would be improved in both its capacity and manufacturing. Ibrahim Jaham Al Kuwari, General manager of Woqod, said that the company has been working closely with the Public Works Authority (Ashghal) to understand Qatar’s bitumen needs for the next seven years. “It’s clear that there will

PETROLWORLD

054

Section 2

Oil Company Retail Brand News > Middle East: News & Updates

be a huge increase in demand for bitumen, and with the signing of today’s memorandum of understanding with Ashghal for increased supplies, Woqod will be upgrading its bitumen facilities to ensure its reputation for providing timely and cost efficient supplies to Ashghal road contractors will be met in future,” he remarked. Woqod, which operates three dedicated bitumen ships, is the largest importer and distributor of bitumen in Qatar. PETROLWORLD 26032014 Saudi Arabia: Government Allows Stations to Hand Out Tissue Paper Saudi Arabia’s Government has allowed fuel service stations to once again issue free boxes of tissue papers, a practice that was banned last year for safety reasons. Announcing that stations could once again supply free tissues, Civil Defense spokesperson Col. Saeed Sarhan told reporters that safety regulation s would apply. these include storing tissue paper boxes in fire-proof containers and distributing the tissues away from petrol pumps. More than 1,000 fuel service stations in Jeddah have received these instructions.

The decision follows extensive discussion between Civil Defense officials with tissue paper manufacturers and fuel service station owners, who claim that they incurred heavy financial losses due to the six-month ban. The original decision was meant to prevent fire hazards, according to officials. The Civil Defense recommends that gas stations install fire-proof stands for the boxes and ensure that these stands do not obstruct the driver’s view. PETROLWORLD 18032014 UAE: ADNOC Distribution Opens Al Bateen Vehicle Inspection Centre ADNOC Distribution has announced the opening of its latest Vehicle Technical Inspection Centre in Al Ain. The new facility has the capacity to service 300 vehicles per day, and comes in as a response to the growing needs of ADNOC Distribution’s customer base for its various products and services, the company said. The centre was opened by Mohammed Obaid Al Dhaheri, Senior Vice-President of Retail Sales at ADNOC Distribution, along with senior officers from Al Ain Police Headquarters, and department directors and employees of ADNOC Distribution. The technical inspection centre features two tracks, with the provision to expand to four tracks in the future. It also offers vehicle registration and licensing services, car insurance company offices, and an ADNOC Oasis outlet that includes restaurants and snack shops and an ATM machine at the premises. “The response to our initiative to open new vehicle technical inspection centers. In order to reduce congestion at the existing centers in Al Ain at certain

055

times of the day, ADNOC Distribution is working to establish new centers and expand the scope of the existing ones. Al Bateen Center now has the wherewithal to provide our customers with highlevel technical examination services,” remarked Al Dhaheri. PETROLWORLD 04042015 Yemen: Stations Shut Over Diesel, Propane Shortages Fuel service stations in the Yemeni capital of Sana’a have been forced to shut down because of shortages in both diesel and propane. According to local media, people have begun parking their cars at stations and waiting for fuel to arrive. Yemen last experienced a severe diesel fuel shortage in early November 2013. Speaking to the Yemen times, fuel station owner Mohammed Al-Aizari said that deliveries had been spotty for two months, but had stopped completely in recent days. “People lined up in front of the station and some people even slept in their cars but because we didn’t get any deliveries, we decided to close the station,” he explained. Fuel is available on the black market, but at a higher price than official limits allow. Meeting on Thursday, the Yemeni parliament formed a committee to study the reasons behind the diesel shortage and to coordinate with relevant government bodies. The committee is scheduled to report this week. Commenting on the situation, Yemen Petroleum Company said that diesel is regularly delivered to gas stations but that the current high demand has led to the shortage. PETROLWORLD 19032014

ARCHIVE NEWS: VISIT PETROLWORLD.com

Kuwait: KNPC Holds First Open Retiree Meeting

Qatar: Tasweeq and Idemitsu Mark Long Partnership, Sign Downstream Deal

Qatar: Woqod Investing in Storage

Qatar: Woqod Plans new Testing Centres

Saudi Arabia: Government Allows Stations to Hand Out Tissue Paper

UAE: 20 More Stations Adopt Self-Serve Fuelling

UAE: ADNOC Begins Rebranding at Emarat sites

UAE: ADNOC Distribution Re-Launches ‘ADNOC Voyager Lubricant Range

UAE: ADNOC Signs Fuel Services Agreement with Abu Dhabi Airports

UAE: ENOC Hailed for CSR Work

Yemen: Stations Shut Over Diesel, Propane Shortages

Bahrain: BAPCO Announces Certification Success

Qatar: Diesel Quality, Subsidies, Encourage Smuggling

Qatar: Vodafone, Woqod, Announce Partnership

UAE: ENOC Aviation Highlights Safety Standards

PETROLWORLD

056

Section 2

Oil Company Retail Brand News > Latin America: News & Updates

Section 2 057

Puma Energy Americas Names New COO

LATIN AMERICA HEADLINE NEWS: Puma Energy Americas Names New COO FEATURED NEWS: Argentina: Petrobras Introduces Premium Diesel Bahamas: Esso Dealers Optimistic On Sol Arrival Brazil: Petrobras Fires Executive Over Refinery Purchase Brazil: Raizen Expands Distribution Reach Cayman Islands: Regulator Calls for Minimum Fuel Standards Chile: Copec to Enter LNG Distribution Sector Columbia: Cartagena to Resume in May 2015 Columbia: Diesel Imports to Drive Cleaner Fuel, Says Ecopetrol Sint Maarten: GB, Texaco, Bring New Gasoline Additive to Market Venezuela: PDVSA Assures on Zulia Supplies

Rodrigo Adolfo Zavala has been appointed as the new Chief Operating Officer (COO) of Puma Energy Americas. Zavala will manage the day-to-day operations of the company in Central and South America and the Caribbean, reporting directly to Puma Energy CEO Pierre Eladari, the company announced. Serafin Ruiz, the previous COO for Puma Energy Americas, will remain with the company as an advisor to the Puma Energy board in Geneva. Zavala has over 20 years of energy industry experience in sales management, operations, marketing and finance throughout the Americas. Since joining Puma Energy in 2011, he has been involved in the company’s successful acquisition of ExxonMobil assets in Central America and played a key role in the company’s expansion into the South American market as General Manager for Puma Energy in Paraguay. Most recently, he worked as deputy COO based in Puerto Rico. Argentina: Petrobras Introduces Premium Diesel Petrobras has announced the launch of a new premium diesel fuel, Diesel Podium, containing 10 sulphur parts per million, to the Argentine market. The company plans to develop campaigns and training courses for employees of service stations, while specialists are adapting installations at service stations, cleaning tanks and making general arrangements for release to the public. The new fuel is designed to meet the requirements of new technologies for diesel engines, offering improved performance, greater engine protection and greater care for the environment, according to a statement sent by Petrobras to local retailers. It is specially developed for vehicles with Euro IV and Euro V technology with common rail power systems, but can be used in any diesel engine. “It has greater cleaning power of all parts of the injection circuit, removing carbon deposits that the system contains,” said Petrobras. PETROLWORLD 09042014 Bahamas: Esso Dealers Optimistic On Sol Arrival Local dealers operating under the Esso brand have told local media that they are content and optimistic about the change in the retail network’s ownership. Speaking to local newspaper Tribune Business, one unnamed dealer reported

PETROLWORLD

“I am honored to be selected as COO and am thrilled to begin this new chapter of my career with Puma Energy Americas. Looking ahead, I am eager to continue and build upon the great work Puma Energy is doing across the Americas, continuing to satisfy thousands of business and retail customers with the highest quality in product and service,” Zavala said. “With his wealth of experience and proven record of success, Rodrigo is uniquely qualified to lead Puma Energy’s operations throughout the Americas. I am confident that under Rodrigo’s leadership Puma Energy Americas will both continue to capitalise on the gains of our recent acquisitions while also seeking opportunities to expand aggressively in this critical and growing regional market,” remarked Eladari. PETROLWORLD 02042014

Petroleum Bahamas, has previously affirmed that the company will retain Exxon Mobil as a fuel supplier and the Esso brand across the 40-station network. PETROLWORLD 31032014 Brazil: Petrobras Fires Executive Over Refinery Purchase

immediate improvements in service. “I have found that the maintenance and repair aspect has improved; faster, better and hopefully at less of a cost to us. That has been one improvement I have noticed,” he said. “We have some procedural changes we have to do on a daily basis that is going to be tedious, like checking to make sure no holes are developing, that the canvas is clean and the coolers are working. Hopefully, we can get that changed to a weekly basis. Other than that, everything looks like smooth sailing. They haven’t increased any costs on us, and for the most part all of us have the same contracts that we had extended for three years. That’s a good thing. I’m good for the next three years, then we will see.” Meanwhile, fuel retailer Arnold Heastie said that the change of ownership had affected little on the ground. “Esso Bahamas is now Sol Petroleum. Nothing has changed significantly. The owner is now in the Caribbean, so I’m sure it would be quicker to get a response, but other than that I don’t see anything that’s so significant,” he remarked. Keith Glinton, General Manager of Sol

Petrobras has announced the sacking of Chief Financial Officer Nestor Cuñat Cervero over the purchase of a Texas refinery in 2006. Cervero will be temporarily replaced by the current president of that fueldistribution subsidiary, Jose Lima de Andrade Neto, the company said. His dismissal comes as the acquisition of the refinery, costing hundreds of millions of dollars, has become a political scandal involving President Dilma Rousseff. Petrobras paid $360m for a 50% share of the Pasadena facility in 2006, just a year after Astra Transcor Energy had acquired a full interest in the site for $42.5m. The company subsequently had to spend $820m to acquire the remaining stake a number of years later. Five Brazilian Senators have said that they will ask federal prosecutors to probe Rousseff’s role in the transaction, as a member of Petrobras’ board at the time. In a statement last week, Rousseff said that the board approved the deal based on a “technically and legally flawed summary” report prepared by Cervero. PETROLWORLD 24032014

PETROLWORLD

058

Section 2

Oil Company Retail Brand News > Latin America: News & Updates

Brazil: Raizen Expands Distribution Reach

A detailed analysis of local fuel products by the Cayman Islands Petroleum Inspectorate have found fuel quality to be “acceptable”, but recommended the establishment of minimum fuel standards. The regulator inspected fuel from stations offered by the two largest fuel retailers on the island. Notwithstanding the quality of the fuel inspected, Chief Petroleum Inspector Duke Munroe recommended that a committee be established to develop set quality standards for imported fuel in the Cayman Islands. “Prior to this [review], there was an ‘opening’ for fuel of varying quality to be imported and marketed locally by all parties,” said the report. “Quality standard, or more appropriately the absence thereof, is understood to be robbing Cayman of certain makes and models of vehicles as a result of manufacturers’ reluctance to offer such products in territories/regions which are lacking such regulations due to (performance) reputational concerns.” Munroe also recommended that periodic random sampling and certified fuel analysis should be conducted for all retail fuels. “This process will be supervised by the Petroleum Inspectorate Department, however the cost needs to be covered by the fuel importer,” the report urged. The regulator also supported the establishment of a complaints process for customers who believe the gas or diesel they purchased was substandard. The investigation an report, Munroe noted, came after a number of public

PETROLWORLD

Oil Company Retail Brand News > Latin America: News & Updates

“Given growth in fuel demand, they do have difficulties in supplying the domestic market and will keep increasing imports this year,” said Hernan Cavarra, an analyst at Frost & Sullivan. Diesel imports currently run at 55,000 bpd, with the USA accounting for 79% of all fuel shipments to Columbia. Fuel demand is expected to expand by 4.5% this year. PETROLWORLD 18032014

Raizen has announced an agreement to to acquire Distribuidora Latina and its 200-plus fuel service station network. The disclosure was made by the company, a 50-50 joint venture between Brazilian sugar and ethanol producer Cosan and Royal-Dutch Shell, in a regulatory filing. Distribuidora Latinahas a strong presence in southern Brazil and a fuel distribution center in Ijui, Rio Grande do Sul. Raizen has a network of 5,141 fuel service stations across Brazil under the Shell brand. PETROLWORLD10042014 Cayman Islands: Regulator Calls for Minimum Fuel Standards

Sint Maarten: GB, Texaco, Bring New Gasoline Additive to Market

complaints regarding poor quality fuel. However, he noted, those complaints lacked specific information in many cases and were not recorded properly. PETROLWORLD 13082014

Chile: Copec to Enter LNG Distribution Sector Copec has signed a five year agreement with Chile’s state-run oil firm, ENAP, to enter the liquefied natural gas (LNG) distribution business. The LNG will be distributed to industrial customers, the company said, adding that it will e willing to build, maintain and operate regasification plants. “Entering this market, Copec generate synergies between LNG and traditional fuels,” said Copec CEO Lorenzo Gazmuri. Copec said that its LNG offering will also include other fuel products. The agreement with ENAP has not set a definite amount of LNG to be delivered from state surpluses, but will vary according to demand and the signing of contracts with customers. PETROLWORLD 20032014 Columbia: Cartagena to Resume in May 2015 Colombia’s state-run oil company, Ecopetrol, will restart its 80,000 bpd Cartagena refinery in May of next year, Downstream Vice President Pedro Alfonso Rosales has revealed. The company is doubling the facility’s capacity to 165,000 bpd, and adapting it to handle a heavier crude mix to reduce

dependence on imports. “Really we expect it to be between the end of April and May but the most certain is that in May it will be restarted,” Rosales said. Speaking on the sidelines of a local conference, Rosales said that the logistics and distribution of imported fuels were the only operations now taking place at the plant. Colombia is importing about 7,000 barrels per day of diesel and gasoline as a result of Cartagena’s closure. PETROLWORLD 07042014 Columbia: Diesel Imports to Drive Cleaner Fuel, Says Ecopetrol Ecopetrol plans to import 7.4% more diesel as Columbia shifts to cleanerburning transport fuel. The country has reduced sulphur limits on the diesel used by trucks from 500 parts per million to 50 parts per million. The restriction has tightened supply while its second largest refinery undergoes maintenance to meet the new conditions.

GB Energy, operator of the Texaco fuel retail network in Sint Maarten, has announced the introduction of the Techron gasoline additive to the local market. The additive is designed to clean vehicle engines for better performance, lower

emissions and maximum fuel economy. Techron removes carbon residue left in the engine (due to the use of low quality gasoline), working molecule by molecule to prevent deposit formation and thus helping to restore the engine’s lost performance. “The continued use of Texaco with Techron® helps maintain the automobile in optimum conditions each kilometer it is driven” said GB Energy’s Sint Maarten Chief Operating Officer, Bela Szabo. Sint Maarten customers can now benefit from Texaco with Techron gasoline available at ALL Texaco Service Stations, the company confirmed. PETROLWORLD 03042014 Venezuela: PDVSA Assures on Zulia Supplies Officials at Venezuela’s state-run oil firm, PDVSA, have claimed that fuel

Section 2 059

inventories in the Zulia region are “normal”, and accused opposition figures of creating anxiety about the situation. “There is no reason for there to be queues at petrol stations Maracaibo,” said Kamal El Chiriti, Executive Director of PDVSA Occidente. The Bajo Grande plant and the loading rack of San Lorenzo, which handle the fuel distribution to the west of the country, are work perfectly , he added. Long queues at fuel service stations were attributed to opposition “guarimbas” raising local “anxiety”. PETROLWORLD 21032014

ARCHIVE NEWS: VISIT PETROLWORLD.com

Argentina: AXION Debuts Oil Services Offering

Argentina: Kicillof Sells YPF Deal to Parliament

Argentina: New Bill to Regulate Station Ownership

Argentina: New Brand on the Way for 2015

Argentina: Petrobras Introduces Premium Diesel

Argentina: Petrobras Weighing Argentine Sale Again - Report

Argentina: Premium Fuel Demand Grows Despite Price Increases

Argentina: Price Controls Eating Into Biodiesel Market

Argentina: Shell Opens New Motorcycle Fuelling Service

Argentina: Station Owners Plan Meeting

Argentina: Station Owners Welcome Petrobras Commitment

Argentina: YPF Director Warns of Continued Price Rises

Argentina: YPF Recognises Excellent Retailers

Bahamas: Esso Dealers Optimistic On Sol Arrival

Bahamas: Sol to Build on “Incredible Inheritance”

Barbados/Belize: Sol Rolling Out Shell High Mileage Lubricants

Bermuda: Sol Celebrates Esso Takeover

Brazil: “Nothing Will Destroy Petrobras” Rousseff Pledges

Brazil: Further Price Hikes Could Enable SelfSufficiency - Petrobras

Brazil: Petrobras Forgives PDVSA Debt

Brazil: Raizen Expands Distribution Reach

Cayman Islands: Regulator Calls for Minimum Fuel Standards

Chile: Copec to Enter LNG Distribution Sector

Chile: ENAP Gives Assurances on Fuel Supplies

Columbia: Cartagena to Resume in May 2015

Columbia: Diesel Imports to Drive Cleaner Fuel, Says Ecopetrol

Columbia: Ecopetrol Boosts Environmental Investment

Colombia: Ecopetrol Pertnering with Environmental Bodies

Columbia: Petrobras Opens 100th Station

Columbia: Terpel Rolling Out altoque Stores

Sint Maarten: GB, Texaco, Bring New Gasoline Additive to Market

Paraguay: MIC Shuts Down Stations Over Permits

Venezuela: PDVSA Assures on Zulia Supplies

Venezuela: PDVSA Income Down, Improved Profitability

Venezuela: PDVSA “Fending off Threats”, Claims Ramirez

PETROLWORLD

060

Section 3

Fuel Distribution & Logistics > News & Updates

Section 3 061

Australia: Mackay Terminal Enters Final Construction Stages

FUEL DISTRIBUTION & LOGISTICS HEADLINE NEWS:

The development of Puma Energy’s AU$70m fuel import terminal in Mackay, northern Queensland, has entered its final stages of construction, the company has announced. The terminal, scheduled to open in May, will boast six storage tanks with 56 megalitres of storage capacity, joined to the port by a dedicated over ground pipeline of 1.6 kilometres. The facility will be a key component in Puma’s medium and long term strategy for the region, according to General Manager Ray Taylor. “A great deal of Australia’s mining activity happens out of central Queensland and at the moment these companies just don’t have access to a flexible, independent fuel operator that can adequately service all their needs,” remarked Taylor. “We are responding to a significant gap in the market and our investment in Mackay is to support the mining industry

England, UK: Greenenergy Wins Safety Award

Australia: Mackay Terminal Enters Final Construction Stages FEATURED NEWS: England, UK: Greenenergy Wins Safety Award Indonesia: Pertamina Drivers Protest Unpaid Overtime Ireland: Phillips 66 Abandons Whitegate Buyer Hunt Nigeria: NIPCO Re-Opened as Union Dispute Rumbles On Philippines: Manila Mayor Wants Pandacan Terminal Shutdown Romania: OMV Petrom Completes Romania Terminal Modernisation Sri Lanka: Ceylon Plans New Storage Facility Ukraine: Lukoil Continues Crimea Service as Shell Closes 6 Sites USA: 5m Gallons of Exxon Fuel Contaminated, Says Official USA: Casey’s Announces Distribution Site Details

PETROLWORLD

Greenergy has received RoSPA Gold awards for occupational health and safety for its Plymouth fuel terminal and biodiesel manufacturing facility at Immingham, both in the UK. The awards are designed to recognise Greenergy’s commitment to ensuring the highest standards of health and safety performance and management, the company said. The RoSPA Awards scheme recognises commitment to accident and ill health prevention and is open to businesses and organisations of all types and sizes from across the UK and overseas. “These awards recognise the continuous improvement at both sites, with the Plymouth terminal progressing from a silver award last year and our biodiesel manufacturing facility demonstrating improvement on every measure of health and safety performance,” noted Chief Executive Andrew Owens. “We’re making significant infrastructure investments at the current time, so it’s critically important that our approach to safety is of the highest standard.” Announcing the achievement Greenenergy noted that its approach to safety is based on detailed and open reporting and structured follow-up. Every individual working in the business is encouraged to report near misses and hazards, however small, allowing them to be followed up and helping to prevent more serious incidents. Every incident is logged, investigated, tracked and resolved through dedicated central SHE

and our acquisition of Central Combined Group, which has an outstanding reputation in the region.” Mackay Whitsunday Regional Economic Development Corporation CEO Tonia Wilson has also voiced support for the project. “This is probably one of the biggest industry investments we’ve seen in Mackay in quite a while. I believe Puma Energy will also be looking to grow their logistical footprint in the region, so it has potential for continuing benefits,” she told a local newspaper. “It is a bit of a coup for Mackay.” PETROLWORLD 21032014

management software. This information is analysed and shared throughout the company to ensure that lessons are learnt across all parts of the business. PETROLWORLD 02042014 Indonesia: Pertamina Drivers Protest Unpaid Overtime Up to 200 members of Indonesia Tank Car Crew Solidarity Community (PSMTI), representing tanker truck drivers for Pertamina, have staged a demosntration at the company’s offices in Jakarta. The drivers allege that overtime wages have not been paid to them for six years, and demanded redress. “Our overtime wages have not been paid for six years. There are about 2,000 employees from Java until Madura who haven’t received the wages. In total, it reaches Rp 749bn,” said a union official. Abdul Rochim, Operation Head of Pertamin’s BBM Terminal, said that the action would not disturb local distribution, though the company was taking measures to divert trucks from the protest. “We have 200 fleets going back and forth two times a day. Although the access to Gate 1 is disturbed, BBM supply to Jabodetabek isn’t,” he stated. PETROLWORLD 07042014 Indonesia: Puma Acquires Remaining Downstream Stake in Medco Energi Medco Energi Internasional, Indonesia’s largest listed oil and gas company, is selling its remaining ownership in its storage and distribution unit to focus on

exploration and production. In a filing to the Indonesia Stock Exchange on Friday, Medco said it had signed an agreement to sell its 35.3% stake in Medco Sarana Kalibaru to Puma Energy Singapore. Lukman Mahfoedz, president and chief executive of Medco, told local media that the latest deal was valued at about $18 million. In December 2012, Medco sold a 63.9% stake in Medco Sarana Kalibaru to Puma for $36 million. That deal signified Puma’s first entrance into Indonesia, and the latest deal will take Puma’s stake in MSK to 99%. MSK owns and operates a fuel storage facility in Tanjung Priok Port in North Jakarta and distribution facilities in Kalimantan and Sumatra to cater to mining companies. It has a total fuel storage capacity of 25,700 cubic meters. Medco has started divesting its non-core operations in the past few years. With this latest stake sale, Medco no longer has any presence in the downstream oil and gas business. PETROLWORLD 220314 Ireland: Phillips 66 Abandons Whitegate Buyer Hunt Phillips 66 has confirmed that it is cancelling plans to sell its Whitegate refinery in Ireland, the only refining facility in the country, and will keep on running it. “Based on the level of interest from potential buyers, we will take the next step in the sales process for the Bantry Bay storage terminal only,” said Company Spokesman Rich Johnson.

PETROLWORLD

062

Section 3

Fuel Distribution & Logistics > News & Updates

The 71,000 bpd refinery will continue to operate to meet existing customer contracts. Aside from falling demand on the continent, European refineries are struggling amid increasing competition from plants in the Middle East, Asia and North America. The workers at the facility are expected to keep their jobs. PETROLWORLD07042014 Nigeria: NIPCO Re-Opened as Union Dispute Rumbles On The National Union of Petroleum and Natural Gas Workers, NUPENG said it had re-opened a terminal operated the Nigeria Petroleum Company, NIPCO following government’s intervention in a union leadership crisis. Speaking at a news conference in Abuja, NUPENG President Igwe Achese said that members in the company had been directed to resume work immediately following Government assurances that all areas of contention would be addressed. “Relevant government agencies have intervened and we are keeping faith with what we discussed at the meeting,” he said. “We have told them that the leadership crisis must be addressed, so we are assuring Nigerians that NUPENG will continue to remain selfless.’’ Achese was refering to the situation at the Independent Petroleum Marketers Association of Nigeria (IPMAN), where President Aminu Abdulkadir continues to assert his right to lead the organisation in the face of challenges. “A competent law court has asked him to leave,” said Achese, asserting that Abdulkadir was extending his term illegally. The Union also called on fuel marketers and retailers to ignore Abdulkadir’s call for a retailer strike. Meanwhile, the Nigeria Labour Congress (NLC) also advised IPMAN not to provoke Nigerians by embarking on frivolous strikes due to personal interest. In a statement issued by the NLC President Abdulwaheed Omar, the organisation said that marketers had no reasons to close down fuel stations as there were no issues of national interests in dispute. “There have been media reports of an impending strike by members of the Independent Petroleum Marketers Association of Nigeria (IPMAN). his is under the pretence that members of NUPENG are on strike at the Nigeria Independent Petroleum Company, (NIPCO), a company owned by IPMAN. While it is not true that NUPENG

PETROLWORLD

members at NIPCO are on strike, the issues in contention are basically an attempt to fiddle with internal democracy within the leadership of IPMAN,” explained Omar. “This is resulting in the refusal of the outgoing president to accept to leave office after the expiration of his tenure. The second issue is the refusal by members of NUPENG at NIPCO to accept the continued payment of petroleum subsidy to members of IPMAN who do not supply petroleum product in Nigeria. The concern by members of NUPENG against those who believe they can continue to receive subsidies for the supply of petroleum products even when they supply nothing cannot be considered a strike.’’ PETROLWORLD07042014

The project completion makes the site the fourth modern fuel terminal completed by the company in the last five years. It will ensure the supply for the north-eastern part of Romania, the company said. “So far we have invested a total of around E100m in the construction of three new terminals in Jilava, Brazi and Isalnita, and in the modernization of the Bacau terminal,” said OMV Petrom’s Executive Board Member responsible for Refining and Marketing, Neil Anthony Morgan. The four terminals have a total storage capacity of 65,000 cubic meters. In 2013, Petrom reported a profit of over €1bn from its Romanian unit, and expects a lower profit of approximately €880m this year. PETROLWORLD 03042014 Sri Lanka: Ceylon Plans New Storage Facility

Philippines: Manila Mayor Wants Pandacan Terminal Shutdown Manila Mayor Joseph Estrada has set a deadline of February 2016 to remove the distribution terminal in Pandacan. Speaking to local media, Estrada said that there will be no extension for Petron, Shell or Caltex beyond the 2016 date. “This is like the truck ban. Nobody can pressure me. They have until February 2016 to vacate the area,” he said. Estrada claimed that the facility poses danger to residents in the area, adding that the city Government will demolish it if the oil companies do not do so. “It can explode anytime. Malacañang might even be affected. We have no financial gains from [depot] operations,” he said. PetrolWorld 04042015 Romania: Logistics - OMV Petrom Completes Romania Terminal Modernisation OMV Petrom has announced the completion of a €18m modernisation programme for its fuel terminal at Bacau in Romania

Ceylon Petroleum Storage Terminals has announced that it will construct a new fuel storage facility in Pallai, Sri Lanka. The planned investment follows the extension of the country’s northern railway line to the area. The firm will shift current operations at its facility in Kankasanthurai to the new location. 40 Acres of land have been allocated for the construction of the new facility, which is expected to hold a month’s supply reserve of petrol, diesel and kerosene to aid transportation and distribution. According to a company spokesperson, CPSTL also has plans to construct six 10,000 tonne capacity storage tanks in Kolonnawa and four tanks in Muthurajawela. PETROLWORLD 13082014 Ukraine: Lukoil Continues Crimea Service as Shell Closes 6 Sites Shell Ukraine has closed six of its 22 fuel service stations in the Crimea, a company spokesman has told local media. The closures follow an October board meeting in which the operating company decided to shut certain sites to optimise its activities. “As of now, we can provide no comment about the future of our 16 remaining filling stations in Crimea. We are closely watching the development of the situation,” said the spokesman. Lukoil stations in the area are operating as normal, with gasoline and diesel supplies continuing to the 13 sites. PETROLWORLD 02042014

Fuel Distribution & Logistics > News & Updates

USA: 5m Gallons of Exxon Fuel Contaminated, Says Official Louisiana’s Commissioner of Agriculture and Forestry has claimed that over 5m gallons of gasoline shipped from the ExxonMobil Baton Rouge terminal in mid-March was tainted, causing the intake and valve systems of vehicles to gum up. Speaking to local reporters, Commissioner Mike Strain said that the problem is contained to two batches of gasoline shipped between March 12 and March 15. The revelation follows ExxonMobil’s shutdown of the Baton Rouge terminal last week to identify a “potential issue” with fuel in the vicinity. ExxonMobil has noted that it is working with Exxon-branded stations and other wholesale fuel customers to ensure a continued supply of fuel for motorists. Strain said that approximately half of the gasoline sold in metro Baton Rouge comes from the Exxon terminal that has been shut down. “What we think is something got in the fuel that shouldn’t have gotten in,” he explained, adding agents from the Department of Agriculture and Forestry’s weights and

measures division are testing gasoline from several Baton Rouge gas stations for a variety of contaminants. “We need to know exactly what compound we are dealing with,” he added. “We are taking this matter seriously and are investigating the issue to determine the cause,” said the company in a statement. “We want customers to know that the fuel currently at stations meets Louisiana’s stringent regulatory requirements and is safe for use in vehicles.” PETROLWORLD 31032014 USA: Casey’s Announces Distribution Site Details Casey’s General Stores has announced details of a second distribution centre to fuel the company’s growth, and intends to break ground at the site in November 2014. The facility will be located in Terre Haute, Indiana, the company said. Casey’s will invest $30m into the centre, which will span at least 250,000 square feet, and expects the construction project to be complete in 12 to 18 months.

Section 3 063

“Casey’s devoted a significant amount of time and resources to the site selection process for this facility. We believe Terre Haute is the most strategic location that will enable us to expand our territory further south and east, while at the same time providing a more efficient distribution system to our existing stores,” said Robert Myers, chairman and CEO of Casey’s. The company has also recently begun building a 38,000-square-foot addition to its current distribution center in Ankeny. Casey’s operates fuel service stations and convenience stores in 14 Midwestern states, primarily Iowa, Missouri and Illinois. The company also operates one standalone pizza delivery and carryout store. PETROLWORLD 03042014

ARCHIVE NEWS: VISIT PETROLWORLD.com

Australia: BP Confirms Refinery Closure

Australia: Mackay Terminal Enters Final Construction Stages

Australia: NSW Minister Threatens Cootes Ban

Czech Republic: Unipetrol Secures Rosneft Supplies

England, UK: Greenenergy Wins Safety Award

England, UK: Refiners Adopt Diesel Filter Blocking Test

England, UK: Portland Offers Fixed-Cost Fuel Card

Finland: Neste Hands Ship Management to OSM

Greece: Hellenic Petroleum Bunkering Stalled by Strike - Report

India: AP Dealers Cancel Strike

Indonesia: Pertamina Adding to Tanker Fleet

Indonesia: Pertamina Drivers Protest Unpaid Overtime

Indonesia: Pertamina Rolling Out Monitoring System

Indonesia: Puma to Buy Medco Distribution Unit

Malaysia: Authorities Foil Major Smuggling Ring

Nigeria: Marketers Threaten Strike After NIPCO Site Closure

Nigeria: DPR Warns Against Fuel Hoarding

Nigeria: New Cargo Expected to Relieve Shortages

Oman: Oiltanking Odfjell Enhances SOHAR Port Infrastructure

Philippines: Logistics Manila Mayor Wants Pandacan Terminal Shutdown

Philippines: SEAOIL Opens Major Davao Depot

Qatar: Woqod Investing in Storage

Romania: OMV Petrom Completes Romania Terminal Modernisation

Sri Lanka: Ceylon Plans New Storage Facility

Ukraine: Lukoil Continues Crimea Service as Shell Closes 6 Sites

USA: Logistics - Casey’s Announces Distribution Site Details

Venezuela: PDVSA to Boost Caribbean Storage

Chile: Copec to Enter LNG Distribution Sector

England: UK Fuels Relaunches Fleetone Card

Scotland: OFT Seeks Input on Western Isles Supply

PETROLWORLD

064

Product & Supplier > News & Updates

Section 4 065

PRODUCT AND SUPPLIER HEADLINE NEWS: USA: Kalibrate Survey Shows Increased Reliance on Pricing Software FEATURED NEWS: Australia: Wayne Adds New Distributor Belgium: Scheidt & Bachmann to Shine at Autotechnica Czech Republic: OPW Introduces AVANCE High-Flow Nozzle and Hose Assemblies Germany: Elaflex Offers Adblue Nozzle Solution Germany: FAFNIR Introduces SECON-X Remote Monitoring Range New Zealand: Colliers to Provide Property Management to Z South Africa: Digicape, Fuel, Help Engen Adopt New Training Programme Tanzania: Comtec Aids Puma in Theft Prevention USA: GPM Expands Kalibrate PriceNet Use USA: Husky Swivels Gain UL Approval USA: OPW Adds to Vapour Recovery Options USA: Seneca, Leighton Oâ&#x20AC;&#x2122;Brien, Expand Partnership

PETROLWORLD

066

Section 4

Product & Supplier > News & Updates

USA: Kalibrate Survey Shows Increased Reliance on Pricing Software A new survey by Kalibrate Technologies has found that more retailers than ever are using software solutions to manage their pricing process. The top four reasons for investing in fuels pricing software were the opportunity to improve profit, the ability to automate processes in order to get prices out faster, the ability to integrate with other systems to streamline the pricing process and analytics that address business needs. 47% of respondents described price optimisation as a ‘must have’, and said that they always used this capability, in contrast to only 26% in 2012. “Retail fuel pricing is a mission critical process that requires 24/7 automation and business intelligence to respond to daily market changes and cost volatility so that you can quickly and effectively generate optimal prices and maximize performance,” remarked Kalibrate’s President and CEO, Bob Stein. “When you add in the importance of being in compliance

Australia: Wayne Adds New Distributor Wayne, A GE Business, has announced the appointment of Petrol Services Australia (PSA) as a Wayne distributor in the Australian market. PSA, a Wayne service provider for nearly a decade, will continue to provide Wayne customers with fuel dispenser installation, maintenance, and support under the agreement. The company will also supply new Wayne fuel dispensers, adding the last component of a complete, end-to-end dispenser supply package. “As a Wayne distributor, PSA will allow us to offer a total forecourt solution from purchase and installation to maintenance and support,” said Wayne Sales Manager, Shaun Napier. “The agreement, along with PSA’s strong brand recognition, greatly improves our distribution network and presence and availability to both independent fuel operators and global oil & gas companies in Australia. We are excited about reaching new audiences to become the dispenser supplier of choice

PETROLWORLD

“The AVANCE by OPW high-flow fuelling nozzle allows retailers to reach higher capacities and increase overall throughput at their locations,” noted OPW EMEA Managing Director Carman Kobza. “The high-flow capability will make the product line an elite fuelling system component for many years to come.” PETROLWORLD 19032014 Germany: Elaflex Offers Adblue Nozzle Solution

with various regulatory requirements surrounding fuels pricing, more and more retailers see the need to replace their internal legacy systems with solutions such as Kalibrate’s fully automated fuel price optimisation solution.” PETROLWORLD 01042014

for Australia.” Over the course of 2014, Wayne also intends to deliver high-quality forecourt control, payment, and automation technology to Australian fuel operators through its relationship with PSA, the company revealed. “As a Wayne distributor we’re able provide the full forecourt solutions Australian fuel operators need today,” said PSA CEO Peter Rowe. “Having enjoyed a fruitful relationship with Wayne for the last eight years, we are very familiar with the reliability and high-quality of their equipment and technology, and are very pleased to work with Wayne in this new capacity.” PETROLWORLD 13082014 Belgium: Scheidt & Bachmann to Shine at Autotechnica Scheidt & Bachmann has announced plans to present the latest innovations for the BeNeLux markets at Autotechnica. The company, which is present in over 60 countries worldwide, will be particularly highlighting the BeNeLux TMS 30 system solution including Promotion Suite and the NMS central system. Scheidt & Bachmann will also present its Outdoor Payment Terminal OPT 240 including audio-visual user guidance, which offers complete new features such as integrated banknote acceptance and voucher / couponing handling for the BeNeLux market, and the new Clou

fuel dispenser line, which has also been equipped with card and cash payment functions. PETROLWORLD 18032014 Czech Republic: OPW Introduces AVANCE High-Flow Nozzle and Hose Assemblies OPW has announced the addition of a new High-Flow Nozzle and Hose Assembly to its AVANCE product line. The new products cover flow ranges of up to 140 litres per minute, the company said, adding to the AVANCE capabilities. The AVANCE next-generation nozzle and system solution was introduced to the EMEA market in April 2012, and has already been received by over 80 customers in 20 European countries. OPW also announced that the AVANCE line has received approval from Sira Test and Certification following a series of quality and functional tests designed push the new AVANCE high-flow components to their operational limits.

Elaflex has announced the introduction of a nozzle solution for fuelling light vehicles with Adblue, the ZVA AdBlue LV To comply with the Euro 6 emission standard, most new Diesel-powered Light Vehicles (cars, vans and light commercial vehicles) will be equipped with a small additional tank for AdBlue urea solution. The company also revealed that the solution is being trialled at selected fuel service stations since mid-2013. PETROLWORLD 07032014 Germany: FAFNIR Introduces SECON-X Remote Monitoring Range FAFNIR has announced the availability of the SECON-X, a universal data collection visual platform for fuel service stations, with options for remote access via web interface. The SECON-X’s intuitive graphic user display offers visual representation of a fuel service station’s wetstock and vapour recovery monitoring status anytime, anywhere via any web enabled device, including mobile and tablet computers. It incorporates SECON-Lev and SECON-Vap systems, the company explained in a statement SECON-Lev provides visual representation of all tank levels and alarms, allowing users to quickly identify low stock and check delivery data without being onsite to read the automatic tank gauge. SECON-Vap, meanwhile, is the platform providing a visual display of the FAFNIR’s globally established VAPORIX system, which evaluates the vapour recovery function at fuel pumps and dispensers. SECON-Vap is connected to the measurement evaluation unit of VAPORIX and provides optical and acoustic alarm if the vapour recovery data leaves the range settings, FAFNIR explained. PETROLWORLD 03032014

Product & Supplier > News & Updates

Section 4 067

New Zealand: Colliers to Provide Property Management to Z

South Africa: Digicape, Fuel, Help Engen Adopt New Training Programme

Colliers International’s Corporate Solutions has been selected to provide property management services to Z Energy, the company has announced. The contract with Z Energy covers the property and lease management of all the fuel retailer’s property holdings around New Zealand, including over 300 fuel service service stations and truck stops. The company previously handled property and lease management in house but, according to Asset manager Gail Calder, decided to tap Colliers’ specialist expertise and proven track record on managing national geographically distributed portfolios. “We appointed Colliers International because of the team’s approach to understanding the place of property in supporting our business and their structured approach to managing the portfolio that will deliver financial and operational benefits to Z. We have a significant investment in our network and they demonstrated how we could maximise our return on that investment. Following a rigorous assessment of the options available we chose Colliers and we are looking forward to partnering with them,” explained Calder. Don Smith, National Director of Corporate Solutions at Colliers, commented enthusiastically on the appointment. “We are delighted to be selected by Z to manage its property portfolio and look forward to working with such a dynamic, growing company which has already become an icon on the New Zealand landscape. We will be working with Z, applying our skills, process and systems to give them the optimal property platform that supports the needs of their operations and network” said Smith. PETROLWORLD 02042014

Engen has adopted a new innovative training programme developed by Premium independent Apple reseller Digicape and online training company Fuel. The scheme is designed to improve the service level, skills and general education levels of fuel service station attendants and cashiers. The course is delivered through Apple iPads, utilising technology to overcome affordability and logistics challenges. “We have more than 17,000 petrol attendants and cashiers employed at over 1000 service stations across the country, and faced high costs and logistical challenges each time we trained people,” explained Nathalie Houtzammer, Training Content Manager at Engen. The tablet format was adopted to allow for intuitive access to education through a touch screen interface. A total of 630 internet-connected devices were prepared on custom-built, securely mounted stands in a kiosk assembly. The training content is delivered through a bespoke application, Engen Learn, which offers work-related and life skills training. “Our unique methodology allows us to overcome different levels of literacy encountered in South Africa. We do this by engaging all of their senses through the use of interactive elements which include animation, and high engagement video which is proven to be the best way of encouraging learning and retention of information,” said Craig Reid, CEO at Fuel. The programme has more than 16,400 active learners who have completed in excess of 243,000 modules to date. On average, the system trains 456 learners per day. A programme survey reveals that 99.13% of users find the modules

PETROLWORLD

068

Section 4

Product & Supplier > News & Updates

easy to understand, while almost all (99.92%) say the programme helped them do a better job. PETROLWORLD 28032014 Tanzania: Comtec Aids Puma in Theft Prevention ComSec Security Systems has reported on a project to improve security through a CCTV overhaul for Puma Energy’s Head Office & Depot facility in Dar-EsSalaam, Tanzania. The company was contracted to deliver a CCTV solution for the office headquarters complex and an oil processing depot for Puma. Speaking to local reporters, however Head of Sales and Business Development Ganesh R. Iyer said that installing the solution was not simply a matter of hardware. “Of course, combating issues such as theft, as well as safety, were paramount. However, this solution was asked to do something more: help change an unfortunate cultural norm that readily looks the other way in issues of theft,” he remarked. According to ComSec, the company had to take into account the stark differences between the office and depot environments and design a unique, two-pronged, CCTV method for both. The system replaced a legacy analogue system that Puma found inadequate for purpose. In order to meet Puma Energy’s goal of a high-quality CCTV surveillance system, Iyer said that a completely new CCTV model was chosen: an IP system on a fibre-optical backbone communication ring with industrial-grade switches in the field. Hikvision was chosen for both camera and NVR needs at the site. “Flexibility was key. We needed a camera that is able to quickly adjust its view and provide great resolution regardless of shorter or longer distances.,” explained Iyer. All of the varied hardware solutions adopted, he said, help to ultimately combat the biggest threat to both Puma Energy and Tanzania’s overall economy: the acceptance of a culture of debilitating theft. PETROLWORLD 31032014 USA: GPM Expands Kalibrate PriceNet Use GPM Investments, owners of the Fas Mart®, Shore Stop®, Youngs, Li’l Cricket, Scotchman Stores®, Breadbox and other fuel retail chains, will expand

PETROLWORLD

its use of Kalbrate Technologies’ PriceNet fuel pricing system, adopting the service across 260 recently acquired sites. Announcing the development, Kalibrate explained that PriceNet provides GPM with high levels of automation and an ‘exception-based’ approach that allows for a quick response to competitors and market conditions, helping to ensure that optimal prices are generated. “We are delighted that GPM is expanding its use of our fuels pricing system and look forward to supporting its exciting growth initiatives,” said Bob Stein, President and CEO of Kalibrate Technologies. “Kalibrate’s pricing solutions – provided by true industry experts – have helped us shave time off the pricing process and make the best possible pricing decisions. Their software, knowledge and experience will help ensure our ongoing success,” said Chris Giacobone, Chief Operating Officer of GPM Investments, LLC. “The value that Kalibrate provides to us is clear and we are pleased to strengthen the relationship that began when we initially purchased PriceNet in December 2007.” PETROLWORLD 28032014 USA: Husky Swivels Gain UL Approval Husky Corporation has announced that its fuel hose swivel assemblies now carry certification from UL. In a statement announcing the achievement, Husky noted that its UL Certified Swivel Assemblies for Hardwall and Wirebraid Fuel Hose Swivel Hose Assembly models CP 12 (for 3/4 inch fuel

hose) and CP 16 (for one-inch fuel hose) comply with all applicable UL safety requirements for use with hardwall or wirebraid curb hose and whip hose. UL certification is required for dispenser equipment on the fuel island at US fuel service stations. The swivel hose assemblies are available for hardwall or wirebraid fuel hoses in any length and are manufactured with a chrome-plated finish. “The CP 12 and CP 16 swivel assemblies meet or exceed safety standards for pull, electrical conductivity, pressure, and hydrostatic tests,” remarked Brian Wolff, Project/Design Engineer at Husky. “They work extremely well with EagleFlex® Hardwall or Wirebraid high-performance curb hose and whip hose.” PETROLWORLD 14032014 USA: OPW Adds to Vapour Recovery Options OPW has announced the expansion of its product offering in CARB/EVR approved Phase 1 Vapor Recovery E85 Underground Storage Tank (UST) equipment. The company’s enhanced range of products have received Phase 1 Enhanced Vapor Recovery (EVR) System certification from the California Air Resource Board (CARB) for use with E85, and have been specifically designed to provide OPW customers with a comprehensive choice of UST equipment that eliminate the risks and materialcompatibility concerns associated with the fuel. The company confirmed that its Overfill Prevention Valve, Vapor Recovery

Product & Supplier > News & Updates

Swivel Adaptor, Fill Swivel Adaptor, Jack Screw Kit, Remote Fill Jack Screw Kit, Monitoring Cap, Drop Tubes, Fill Caps, Face Seal Adaptors, Vapor Recovery Caps Extractor Valves EVR EDGE, EVR 1-2100’s, and Multiport Systems (listed as 1 Series Thread On Spill Containers) are appropriate for E85 use. Due to phase separation (mixing with water), the storage and distribution of E85 can have a significant adverse effect on UST system components. Many traditional materials utilised in the past may not be compatible with E85. Because of this, OPW explained, it is extremely important that tank owners only install system components that are manufactured with materials that are compatible with E85. OPW Project Manager Matt Lauber said that the company was proud to offer products that are compatible for use with E85. “This is just another example of OPW’s commitment to provide products that enable the safest,

most reliable and environmentallyresponsible fueling operations in the industry.” PETROLWORLD 03042014 USA: Seneca, Leighton O’Brien, Expand Partnership Leighton O’Brien and Seneca Companies have agreed on an expansion to their partnership which will see Seneca offering tank and fuel cleaning services throughout the US. The services will be facilitated through Seneca Companies Waste Solutions division. Services will be conducted by fully trained technicians, supported by expert data analysis and comprehensive reporting by Leighton O’Brien’s highly qualified business analysts, the companies said. The companies have worked together since October, when Seneca Companies Environmental division began offering tank and line testing services. The

Section 4 069

extended partnership will enable Seneca customers to resolve water and fuel quality issues, such as malfunctioning pumps and automatic tank gauges, blocked filters and bacterial growth. Unlike other tank cleaning services, our patented design and cleaning process sweeps the entire tank floor to remove free phase water from the tank, and only liquid waste and contamination, not fuel, are removed from site,” said Leighton O’Brien Co-founder and CEO Reed Leighton. “Through this partnership, we can expand our presence and enhance our services portfolio by leveraging Leighton O’Brien’s market-leading technologies,” said Seneca’s Waste Solutions Division Manager, Chris Biellier. “We can now offer our customers an integrated suite of testing, installation, cleaning, maintenance and environmental compliance services for underground storage systems,” he noted. PETROLWORLD09042014

ARCHIVE NEWS: VISIT PETROLWORLD.com

Australia: Wayne Adds New Distributor

Austria: OMV Completes Adoption of Kalibrate PriceNet

Czech Republic: OPW Introduces AVANCE HighFlow Nozzle and Hose Assemblies

Editorial: Wayne Looking Strong

England, UK: Franklin to Showcase at Forecourt & Fuel Roadshow

England, UK: UK Fuels Relaunches Fleetone Card

England, UK: Murco Adopts LED Lighting

Germany: Elaflex Offers Adblue Nozzle Solution

Germany: FAFNIR Introduces SECON-X remote monitoring range

Germany: Hectronic Outlines Participation in Vienna Conference

Germany: OMV Expands Scheidt & Bachmann CoOperation

Italy: Fafnir Announces Green Line SRL Partnership

Tanzania: Comtec Aids Puma in Theft Prevention

UAE: ADNOC Using Oracle for Big Data Trials

UAE: ORTEC To Sponsor 2014 Logistics Conference

USA: Bennett, Sinclair Oil, Partner on Dispensers

USA: Franklin UPP Pipework Gains EN14125:2013 Approval

USA: GE Introduces New Ultrasonic Flow Metre

USA: Gilbarco to Hold Retail Technology Conference

USA: GPM Expands Kalibrate PriceNet Use

USA: Husky Swivels Gain UL Approval

USA: Kalibrate Adds to Traffic Count Database

USA: Kalibrate Announces Support for Cash, Credit, Pricing at Pump

USA: Kalibrate Survey Shows Increased Reliance on Pricing Software

USA: OPW Adds to Vapor Recovery Options

USA: Pit Stop Travel Centers Adopt inOvationTV

USA: Seneca, Leighton O’Brien, Expand Partnership

USA: Source Celebrates 35 Years In Business

USA: SpeedyQ Adopts PriceAdvantage

USA: Tevis Adopts NCR POS Technology

USA: Visa, MasterCard to Team on Card Security

USA: Wayne, Isis, Deliver Mobile Payments for Maverik

USA: Wawa Rolling out Kalibrate PriceNet

USA: PEI Seeks Input on Best Practice Document

England, UK: Gilbarco Offers Tips for Dispenser Media Use

PETROLWORLD

070

Section 4

Product & Supplier > KPS

Our products combine into a very wide and very powerful offering so, from that perspective, it makes a lot of sense: the same customers, the same fuel service stations, and combined supply of the larger product range. There’s a lot of logic to it.” Even aside from providing conventional equipment to the fuel retail industry, Selling sees other potential areas of synergy between the three firms. “The conventional product range is one (opportunity), but I believe there are also nice opportunities in LPG, for instance. KPS, for example, brings to the table an LPG piping system, so there are other applications beyond the conventional fuel station portfolio,” he reveals.

Integration and the Customer Experience

Better Together A New OPW Following the landmark merger of OPW, KPS and Fibrelite, PETROLWORLD speaks to former KPS CEO Lars Selling about the factors behind the deal, the integration process to date, and changes that customers can anticipate. If one story grabbed the industry’s attention at the NACS Show and PEI convention last year, it was the merger between OPW, KPS and Fibrelite. Incorporating the Sweden-based KPS and Fibrelite into the wider OPW family struck outsiders as a bold move but, as former KPS CEO Lars Selling explains, the trend towards industry consolidation

PETROLWORLD

and the nature of the three firms’ business made it a logical one.

A Combined Supply “I think it’s a natural development in the industry. There has been consolidation going on for some time, and there will

continue to be consolidation. Smaller companies may get bought up by the larger ones in order to meet technical requirements. In a general way, it’s a natural thing,” notes Selling, who now serves as Managing Director of the new OPW EMEA. “If I speak from the former KPS perspective, but also for the Fibrelite deal, it’s a logical system.

Integrating three distinct companies with international business interests is a significant task, but the process is going at some speed. It’s. “The main thing, in the short term, is to enable sales of the new and combined package and making the organisation work in a joint and combined environment, as opposed to the three different companies we were in the past. That’s progressing

Product & Supplier > KPS very well - there’s lots of work going on both publicly and behind the scenes to make sure it’s handled,” Selling reveals, explaining that the distribution networks of the combined group’s products dovetail relatively neatly. “As part of the integration process, [KPS is] breaking up the previous organisation so that we fall in under the existing regional structure that OPW. That means that the Asian parts of what used to be KPS will be tucked in under the OPW organisation, and in the EMEA we’re putting the organisation together also. In distribution, there are very few places where there are difficult overlaps: there’s a very good match between the structures. We have very few frictions with double distribution, so it’s working out very well. There are no dramatic changes within the distribution,” he says. That’s not to say, however, that customers of KPS, OPW or Fibrelite will not notice any changes - rather, the company is taking steps to bring it closer to customers than ever before. “If I speak to the EMEA, we are establishing a customer service and tech support network that is going to be delivering support and service on the ‘soft side’ in a different way to what other companies have been doing in the past. In KPS’

Section 4 071

history, we have a technical support network, and that’s complementing what OPW are using. We are going to establish a customer service centre platform meaning that we will have customer service centres close to the customers providing services in the local languages with shorter lead times than have been possible. This is a clear part of the strategy: a very focused customer service approach, that’s stronger than either one of us have been able to present in the past,” Selling explains. Customers can also anticipate a steady flow of new products, boosted by strong investment, Selling reveals. “From a product point of view, there’s a very clear requirement from OPW that we invest in product development. We’re very strong., resource-wise, in a different way than the small companies were in the past. We are certainly going to put our best efforts into putting out new products as quickly as possible. there’s effort being expended on product development all the time.”

A Changing Market That investment will be necessary, Selling believes, for fuel equipment suppliers to thrive in a rapidly changing market. “Generally, there are changes in the fuel retail industry. We’re seeing more and more and more of the major oil companies pulling out,” he affirms. “I think there will be an increased demand and requirement to be a good supplier to the new customer base, which is often private individuals or small companies. They have a different need to the huge oil companies of the past, who had all the resources in the world. All the suppliers active in this industry will have to find a way of supporting and being successful in this new, more fragmented market. That will be increasingly difficult as a small player, and I think that is one of the logical factors behind the OPW-KPSFibrelite deal.” As OPW, KPS and Fibrelite join forces to tackle this changing market, the implications for customers are positive. With a complete range of products covering the needs of fuel service stations, a customer service and distribution network integrating seamlessly, and the resources to develop new products, the combined OPW is an exciting proposition for the industry.

PETROLWORLD

072

Section 4

Product & Supplier > Kalibrate

Section 4 073

Fueling the Future Kalibrate Technologies PETROLWORLD offers exclusive insight into Kalibrate Technologies’ IPO, rebranding, and the future of the business. Even aside from giving Kalibrate the resources to continue growth, Stein says that the experience and success of the listing has had several intangible benefits. “I underestimated it when we started, but the impact internally on our staff has been tremendous. It’s almost been a badge of honour or a puffing out of the chest - they know we do good work and take care of our clients, but we’re being recognised by people willing to invest money. It’s a super morale booster and shaping a story for the future. I think all of our clients see it as positive, strengthening the balance sheet, and it’s obviously more visible to people who we are as a public company,” he says. “Even in prospecting, going in search of clients outside America and Northern Europe, I definitely feel that it’s an additional credibility factor that the company is listed on a London stock exchange. Those intangibles feel good, and I think they also turn into tangibles that will help the business prosper.”

Changing the Name

CEO Bob Stein The past 12 months have been eventful and exciting - for Kalibrate Technologies. Aside from a rebranding and a string of new contracts, the company has also enjoyed a successful listing on London’s AIM index, giving it the resources needed to continue its remarkable growth.

Inside the IPO Looking back, CEO Bob Stein explains that several factors made 2013 the ideal time for Kalibrate to pursue an IPO and continue the next phase of its journey. “The acquisition of MPSI culminated in 2013, when we felt we had completed the integration of the business. It wasn’t

PETROLWORLD

two separate companies any more, and we had all the products that we acquired ready to go to market under one sales force. We thought we had come through that quite well and, as a result of that, we had a fantastic performance - in fact, a record performance in both top-line revenue and profit,” he noted. “The marketplace is very good for us right now, and market forces have us thinking a second thing, to say ‘we can grow even more’. To do that, we’re going to need more resources, which is a combination of more feet on the street in terms of sales and marketing, but also enhancing product development to bring additional value to our clients.”

Of course, even before the listing, the market witnessed a change at the company formally known as KSS Fuels. Changing the name to Kalibrate Technologies, Stein explains, was part of a strategy to boost awareness of the company’s broad range of capabilities. “The reason for the change was that people either knew KSS Fuels as that pricing company that’s been doing a fine job on fuel pricing and then, with purchasing MPSI, most people associated that brand with site and retail network planning. So, when we put the two together and kept it under the KSS Fuels umbrella, we knew we weren’t getting the full weight of our complete offer,” he reveals. “We decided

to change the name, and we came up with Kalibrate. The overall theme whether in pricing, network planning, or any other data tools that we offer clients - is that we have sophisticated data modelling capabilities within the software, so that we effectively help retailers calibrate their businesses. We felt that was the right umbrella.” The ‘k’ has been retained, Stein adds, in a nod to the company’s history and in an effort to evoke knowledge - a consistent theme of the company’s message.

putting a lot of our attention, both now and in the future: a lot of our attention will be on how we can have predictive data tools for quick decision-making.”

An Eye on Clients

An Established Approach It is a measure of the company’s success that many within the industry now embrace knowledge - and sophisticated data mining to inform decision-making - as a vital part of their business. “Going back about ten years ago, as a company, we were dealing with early adopters of this technology in data analytic offering. I think we’ve gone well beyond that now, and most retailers use it in many aspects of their business,” Stein notes. “Clearly, the retail community sees that having data analytic tools is extremely important. The data can make us more informed without being ‘analysis by paralysis’. That’s the key - how to develop analytics that assimilate the data quickly and put it into a format that somebody can act on. That’s where we’re

“If the Government’s not setting the price anymore, you need a solution or mechanism to deal with the competition. Those markets that are deregulating are ripe for all of our solutions.”

Beyond the mature and competitive markets of North America and Europe, Stein notes, policy changes in the developing world present a great growth opportunity for the company. “There’s definitely a trend where Governments are beginning to deregulate fuel pricing to liberate the economy going forward. That’s a major driver for what we do because, when the market’s going to deregulate, you’ve got to prepare for a more competitive environment; therefore retail network and site location planning become critical. In general, there’s going to be more investment both by countries and by companies within countries, there’s going to be new investment coming in, building new sites or buying up existing sites for refurbishing,” he explains.

Even as Kalibrate grows and seeks new opportunities in these markets, Stein is quick to note that existing clients remain the day-to-day priority. “First and foremost, we’re taking care of the clients that we have. Even though we’re a company with a very aggressive growth plan, that all rests on taking care of clients. That’s in my blood because I used to be a retailer,” he says, adding that the company’s client-focused approach has sparked a new initiative to continue driving deep relationships and mutual success. “We formed a separate group within the company called client success, and they stay in contact with the clients and ensure that they’re getting all that they hope to be getting from the tools that we provide.”

Striking the balance of driving growth while keeping a strong focus on existing clients can be challenging. However, Kalibrate’s success to date shows that the company is able to find that balance, and likely to do so for the future.

PETROLWORLD

074

Section 5

People on the Move > News & Updates

Claudio Descalzi Italy: Descalzi Named to head ENI Italy’s Prime Minister, Matteo Renzi, has proposed veteran exploration head Claudio Descalzi as a new Chief Executive for ENI. Descalzi is set to replace Paolo Scaroni after three terms in office at the partially state-owned firm. while Renzi has the role of proposing new managers, the decision needs to be confirmed by shareholders of the company. Descalzi has been the Chief Operating Officer of Exploration and Production Division at ENI since July 30, 2008. While he was head of exploration, the company made the largest discovery in its history – a huge natural gas field off the cost of Mozambique. The company has also found huge amounts of oil off the Republic of Congo. Emma Marcegaglia, a prominent businesswoman from the private sector, was proposed as Chair of ENI, the first time that a woman has been appointed to the role. PETROLWORLD 23042014 Germany: Hectronic Makes Two New Appointments Hectronic has announced the appointment of Sven Stottmeier and Werner Lang to the sales team and Payments division respectively. In his new role, Stottmeier will be taking over the sales territories of southern Germany and Switzerland for both the refuelling and parking business units. He draws on 15 years of experience in sales roles and the fleet business. Lang, meanwhile, will serve as a product manager in the Payment division for both the refuelling and parking business units. He previously worked as a product

PETROLWORLD

USA: Furey to Head Operations at Unitec Unitec has appointed Tom Furey as its new Vice President of Operations, taking a leading role in manufacturing, engineering and customer service activities for the car wash entry systems and auto cashier equipment manufacturer. Furey’s past experience includes various roles in operations and general management at several firms. His previous position was as President of the Industrial Business Unit at Standard Register, with prior roles including Chief Supply Chain Officer and VP Manufacturing at Standard Register, and Director of Operations at Avery Dennison. He holds a bachelor of science in mathematics from the U.S. Naval Academy, and master’s degrees in industrial engineering, mechanical engineering and business administration from California State University Northridge and the Massachusetts Institute of Technology. “Tom’s abilities and focus aligns flawlessly with Unitec’s greater emphasis on enhancing the customer experience through product innovation and customer service,” said Unitec President and CEO Pam Piro. “We’re extremely pleased to have someone

075

PETROLWORLD TEAM

PEOPLE ON THE MOVE and sales manager at Verifone in Bad Hersfeld, with unattended point of sales (POS) systems as a specialty. Lang has worked in the payment business since starting out on his professional career, mostly in a combined sales and product management position PETROLWORLD 23042014

PetrolWorld Team & Advertiser Information

Introducing the team behind PetrolWorld and current contact details. with Tom’s exceptional operational background paired with strong engineering and product development expertise.” PETROLWORLD 16042014 USA: Mapco Changes Leadership Mapco has announced the departure of Rick Altizer, previously Vice President and Chief Brand Officer, after only four months with the firm. Altizer resigned from the management team to become CEO of restaurant chain Elevation Burger, the company revealed. “He was crushed to tell me he was leaving, but said he received a career opportunity he could not refuse,” revealed Chief Operating Officer and Vice President Tony Miller. In his revised role, Miller will now report directly Delek US Holdings’ President, CEO and Chairman, Uzi Yemin. The company said that its strategic direction remained the same despite recent changes. “We set a five-year plan a couple of years ago, and we intend to remain on that track,” said Miller. “We are focused on growing our new-to-theindustry stores, which are 5,000 square feet with a significant emphasis on foodservice. There is no change in that. We are staying very consistent with our strategy,” he added. “We have a lot of things we want to accomplish, and we will achieve them with a great leadership team and our comprehensive strategic plan.” Mapco, the retail branch for Delek US Holdings, operates 370 convenience stores including several fuel service stations in seven states. PETROLWORLD 15042015

David Egan

Anja Coyne

David Egan, founder and President of PETROLWORLD, has been involved in the fuel retail and distribution business since January 1987. Living in Germany, David moved to London to take up a position with Beck Meters which had been acquired by Satam of Paris in 1986. David then spent 2 years from 1991 as a fuel retail consultant working with Texaco (UK), Marubeni (Japan) and IBM before moving into trade media via the Forecourt & Convenience Show in the UK alongside Forecourt News. This was followed by the independent move in 1997 to set up the current PETROLWORLD Forums in Asia.

After graduating from University of Applied Sciences in Düsseldorf Anja Coyne honed her skills in graphic design working as Art Director in advertising. She attained awards from Art Directors’ Club of Germany and Type Directors’ Club New York for her projects. A move to Ireland in 1999 allowed Anja to add corporate branding and web-design to her portfolio. She has overseen the production of publications for U magazine, ESB and Bank Of Ireland. Anja joined the PETROLWORLD print magazine team as Art Director in 2013.

Email: david.egan@petrolworld.com

Derek Owens

Email: anja.coyne@petrolworld.com

Sally Smith

Derek Owens is PETROLWORLD’s International Editor. Since joining the PetrolWorld team in 2011, he is responsible for PETROLWORLD’s daily online news service, and the content of PETROLWORLD Magazine. His past experience includes business journalism on a range of topics, including the upstream and downstream fuel industry.

Sally Smith has worked in an administration role at PETROLWORLD since 2011. This included participation in the 2012 Business Forum. Sally is currently involved with the reorganisation of the subscription services which is being expanded in the second half of 2013. Originally from South East Asia, Sally has lived in Europe for the last 15 years and is now based in the Dublin area.

Email: derek.owens@petrolworld.com

Email: sally.smith@petrolworld.com

Dorota Chojecka

Graham Turner

Dorota Chojecka has worked in various administration roles at PETROLWORLD since 2000. Dorota was also involved in the PETROLWORLD event team up to 2007. Dorota is currently involved in accounts administration.

Graham has advised PETROLWORLD on finance, strategy and positioning in the marketplace since 2009. His role includes customer liaison, billing, and regular financial management. A Certified Public Accountant (CPA), he has 15 years of experience in SME financial management.

Email: dorota.chojecka@petrolworld.com

Email: graham.turner@petrolworld.com

PETROLWORLD Advertiser Directory If you are looking for a particular advertisment, here is the directory for this magazine. FRANKLIN

Inside Front Cover

TATSUNO

ELAFLEX

PETROTEC

HECTRONIC

KALIBRATE

ADVERTO

SCHEIDT & BACHMANN 64

UNITI EXPO

SUBWAY

Inside Back Cover

WAYNE

GULF OIL

Outside Back Cover

OPW/KPS

MAKE CONTACT: IF YOU WOULD LIKE TO ARRANGE CONTACT WITH ONE OF OUR ADVERTISERS, Sven Stottmeier

Werner Lang

PLEASE EMAIL INFO@PETROLWORLD.COM OR CALL +353 402 305 00

PETROLWORLD

076

Next Issue

IN THE NEXT ISSUE + EDITOR'S NOTE Many eyes in the next quarter will turn to North America as the NACS Show and PEI Convention returns to Las Vegas Convention Center from October 7 to 10. PetrolWorld will, as usual, be supporting this key event with extended coverage of the solutions and companies exhibiting. Our regular country and company profiles will also have a North American flavour, with Canada and Alimentation Couche-Tard under our analysis.

Issue 3 2014 Key features include: GEOGRAPHIC FOCUS Canada Retail Survey Branding COMPANY PROFILE Couche Tard BACK TO THE FUTURE Station Design PRODUCT FOCUS Innovations in Tanks EVENT FEATURE NACS/PEI FUEL DISTRIBUTION Challenges of Island Distribution C-STORE EXECUTIVE Carrefour

Of course, Couche-Tard has become much more than just a North American company with the recent acquisition of Statoil Fuel & Retail, and with founder Alain Bouchard assuming the intriguing role of ‘acquirer-in-chief’ at the firm. We will also look globally, with a product focus feature covering innovations in tanks, while our fuel distribution feature will look at the challenges of distribution across island archipelagos - an issue facing countries as diverse as The Philippines and Scotland. As always, this will be supplemented by the mix of news and analysis that makes PetrolWorld an essential source of information and insight in the industry. We look forward to bringing you this issue.

NACS SHOW PREVIEW SPECIAL The next issue will feature an extended preview of The NACS Show, one of our industry’s most eagerly awaited events. To relay news or secure advertising in this issue, email derek.owens@petrolworld.com or david.egan@petrolworld.com.

PA R T N E R I N G A

SUBWAY® store, the #1 Franchise*, is a great fit for your location. You can become a SUBWAY® franchisee or lease space to an experienced SUBWAY® franchisee for an additional source of revenue. The SUBWAY® chain has simple operations and proven control systems, floor plan flexibility and great fresh food options for all day-parts. With portable made-to-order sandwiches and salads, the chain is a recognized leader and requires a low investment. Whether you are looking to own and operate a SUBWAY® store yourself or lease space to an existing SUBWAY® franchisee and earn rental income, the SUBWAY® restaurant chain can offer a formula that works. For more information about the SUBWAY® chain and how it can be the fresh solution for your location.

NEW REGIONAL NEWSLETTERS PetrolWorld’s signature newsletters will now feature an added geographic focus, with newsletters tailored to Asia, Europe, Africa & Middle East and The Americas. to relay news or secure advertising in these newsletters, email derek.owens@petrolworld.com or david.egan@petrolworld.com.

Call: Allison Morrow 800.888.4848 x 1736 or 203.877.4281 x 1736 E-mail: Morrow_A@subway.com

www.subway.com

SUBWAY® is a registered trademark of Doctor’s Associates Inc. ©2014 Doctor’s Associates Inc. *SUBWAY® is the #1 restaurant chain in total restaurant count with more locations than anyone else in the Quick Service Restaurant industry.

PETROLWORLD