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Mon 10 May 2004 04:00 AM

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ENOC invests in $430M Offsets startup

Gulf Energy Maritime PJSC (GEM) has been set up to meet burgeoning demand for clean petroleum transportation.

Three regional industrial giants and one international partner are to invest $430 million in the creation of a new shipping company, Gulf Energy Maritime PJSC (GEM).

The company, formed under the UAE Offsets programme, will by 35% owned by Emirates National Oil Company (ENOC), 30% by Abu Dhabi’s International Petroleum Investment Company (IPIC), 30% by Oman Oil Company and 5% by Thales, the global electronics and systems group.

The company aims to satisfy demand for clean petroleum transportation, which is growing rapidly in the wake of recent environmental disasters involving single hull ships. The company will begin operations with a fleet of two double hull Panamax vessels, with four more on the way in 2005.

“Gulf Energy Maritime will be a reliable transporter of clean petroleum products and easy chemicals, operating in an environmentally aware and commercially viable manner,” said Husssin Sultan, CEO of ENOC.

“We will certainly enjoy market advantage with our fleet of brand new double-hulled ships, and with additional modern acquisitions we will be among the top independent tanker companies in the world. This is a great window of opportunity for us to assume a leading role in the global shipping lanes,” he added.

The UAE Offset Group sets aside money from defence contracts to create businesses that add value to the UAE economy. More than 20 companies, including Oasis Leasing, Tabreed and Asmak, a fish farming business, have been created under the programme since 1992.

Abu Dhabi Commercial Bank, Emirates Bank and Mashreqbank have extended financing to the new company.

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