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July 02 2006
HTL EXPANDS INTO AFRICA WITH TANGIERS PROJECT
The ENOC Group and Horizon (HTL), the wholly owned subsidiary of ENOC, have recently further expanded into Africa. HTL confirmed it has successfully competed against regional, international and major oil companies in being awarded a 25 year concession to build, own, operate, and transfer (BOOT) an international petroleum storage terminal at the new Port of Tangiers, in the Kingdom of Morocco. The deal, which was jointly won with the Independent Petroleum Group (IPG) of Kuwait and Afriquia SMDC of Morocco, was announced by Tangier Mediterranee-Agence (TMSA), the authority body vested by the government of the Kingdom of Morocco with managing the development of the new commercial port, in the May 24, 2006 edition of L’Economiste. The Port of Tangiers is a new US$1.6 billion development aimed at becoming a competitive international port, strategically situated to serve Europe, the Americas, North as well as West Africa. Tangiers lies on the North African coast at the western entrance to the Strait of Gibraltar where the Mediterranean meets the Atlantic Ocean off Cap Spartel. The location of the new port, which has received positive international market feedback, is expected to enable it to serve more than 300 million consumers through industrial and commercial free zones. Currently, the port is comprised of three dry cargo container terminals, and one Ro-Ro and ferry terminal. Morocco’s economic growth as well as its fast growing population has resulted in buoyant growth in domestic energy demand. Since 2000, petroleum products demand has been growing at 3% per annum, and this trend is expected to continue through to 2015. Aziz Akhannouch, Chairman of the Executive Board and Chief Executive Officer of Akwa Group, the parent of Afriquia SMDC, explained in a statement from Casablanca: “The Tangiers petroleum storage terminal has several advantages, one of which is to help solve the shortage in storage facilities in North Morocco, which in turn should help reduce the historical costs associated with the supply of Gasoil and Motor Gasoline from central Morocco to the North. This will no doubt contribute to the growth of the Northern region.” In addition to supplying the northern requirements, the Tangiers terminal will provide bunker services as well as serve the transit market for international petroleum marketing companies. The importance of the Strait of Gibraltar region to East-West traffic is partly evidenced by the size of the bunker market, estimated for 2005 to be six million tons. Khalaf Al-Khalaf, IPG’s Chairman of the Board of Directors, in a statement from Kuwait, explained: “The project is located at the crossing of two major maritime routes, as well as positioned 15 km from the European Union. This offers a unique opportunity to further expand petroleum trading activities. In the case of IPG, for example, the Tangiers investment opens up new marketing opportunities in West Africa while gaining entry into the bunker market of the Strait of Gibraltar.” At least 20,000 tonnes of stored petroleum products will be sold to local retailers. The petroleum storage terminal will be located within the Port perimeter and will be operated and managed by HTL under its international trade name, ‘Horizon’. HTL Chief Executive Officer and Board Member, Yusr Sultan, explained in a statement from Dubai: “HTL invests in and manages petroleum storage terminals in locations where there exists a natural attraction for logistical operations near concentrated high-volume traffic routes. Tangiers not only presents such an opportunity, it also shows a promise for stable growth in the years ahead.” Phase 1 construction will consist of a capacity of 308,000m3 at a cost of more than 52 Million Euros. The Joint Venture, to be known at Horizon Tangiers Terminal S.A., will be incorporated in the Free Zone of Tangiers. HTL will manage the day to day operations of the terminal, and has 34% of the share capital, with Afriquia and IPG owning 33.5% and 32.5%, respectively.

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