You would have thought an oil company from one of the biggest oil-producing countries in the world would have no problem making money. But no: Emirates National Oil Co is begging for help after forecasting massive losses – despite sitting on the doorstep of some of the world’s largest oil reserves.
The Dubai-government owned company is one of the biggest sufferers from federal government financial largesse that helps keep the population of the oil-rich United Arab Emirates happy during this time of regional turmoil, at the expense of allowing companies to make a profit.
Enoc has to buy oil for its petrol stations at market prices but sell it at a subsidised rate of Aed1.72 ($0.47) per litre – with the result that it is expecting a loss of Dh2.7bn ($735m) for the year, prompting an unusually public display of dissent in a country where criticism of the government is taboo. The company said in a statement on Sunday:
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