Adnoc's planned acquisition of Emarat stations in the northern emirates still does not address the main cause of petrol retailers struggling with subsidised fuel prices — but tackles Emarat's financial problems, according to an energy analyst.
Adnoc and Emarat yesterday signed a memorandum of understanding in which Adnoc will acquire 74 Emarat petrol stations in Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah.
"It comes as part of a move to resolve the subsidies issue and financial problems of petrol retailers. Emarat is a federal company and it is natural for them to make a deal with Adnoc," said Robin Mills, head of consulting at Manaar Energy. "Adnoc has no financial problems, it produces oil and there are high oil prices. Emarat is struggling and had to have a cash injection from the government."
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