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Issue 2 2015 WWW. PETR OLWORLD .COM

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PetrolWorld Conference & Business Meetings 2015 Profile of Malaysian Fuel Retailers

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Issue 2 2015

Supplier & Product News ex Asia EU Energy – Interview with UPEI President

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WE ARE

FUELLING SUCCESS

PETROLWORLD

+ CONTENTS

PetrolWorld and the Malaysia Fuel Retail & Distribution Market

Malaysian Fuel Retailers

EU Energy – Interview with UPEI President

SECTION 1: FEATURES 04

World View Snapshot stories from around the world

06 PetrolWorld and the Malaysia Fuel Retail & Distribution Market PetrolWorld’s association with Kuala Lumpur since 1997 08

Malaysian Fuel Retailers

Brief overview of key oil companies SECTION 2: NEWS

OIL COMPANY AND RETAIL BRAND NEWS 16 ASIA 20 Africa 24 MIDDLE EAST 27 Saudi Arabia: Tas’Helat Fuel Retail 28 EUROPE 34 EU Energy – Interview with UPEI President 36 north america 40 LATIN AMERICA SECTION 3: PRODUCTS & SUPPLIERS 44

PRODUCT AND SUPPLIER NEWS SECTION 4: INDUSTRY INFORMATION

50 PEOPLE ON THE MOVE 52 NEXT ISSUE

PetrolWorld Magazine online

www.petrolworld.NET C-Store Executive Magazine online

www.cstoreworld.com

PETROLWORLD

+ CONTACTS

+ EDITOR'S LETTER

International Editor David Egan Contributors Yvonne Stausboll Thierry De Meulder Suraya Haris Ong John Gardiner Muhammad Farooq Ayyub Art Director Anja Coyne Welcome to another edition of the PetrolWorld Magazine!

Advertising Enquiries [emailprotected] Accounts Enquiries [emailprotected] Subscriptions [emailprotected] or [emailprotected] Press Release / Editorial [emailprotected] or [emailprotected] Published quarterly (four times a year) both the PetrolWorld Magazine and the C-STORE executive Magazine, including 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. All material © 2015. No part of these publications or any other PetrolWorld 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, PetrolWorld cannot be held responsible for any inadvertent errors or omissions contained herein. Published by:

PetrolWorld is delighted to be hosting its 16th international gathering in Asia during June. It is also significant for PetrolWorld to be holding the PetrolWorld Conference and Business Meeting event in Kuala Lumpur which we have been associated with since our first visit in 1997. In this issue, we profile the key fuel retail oil companies and brands currently operating in Malaysia and Singapore. I also give my personal perspective on our association with Kuala Lumpur and Malaysia. The Product and Suppliers news section will also highlight the solution providers and suppliers participating at the event in the Maya Hotel. The EU has recently published a strategic framework for Energy Union. We interview the new President of Union Petroleum of European Independents (UPEI) , Mr Thierry De Meulder. – Realistic Challenge or opportunity? News from around the world will have the usual mix of key brands and issues currently happening. The Product and suppleirs news keeps you up to date on new developments and products. One key change you will notice in this issue is the fact that our C-Store Executive will be on line only for the remainder of 2015. C-store Executive will be back with a new format and more developed content in 2016. Other key news items from PetrolWorld is the appoitnment of a new International Business Development executive which will be announced in Kuala Lumpur as well as a new representative office in Kuala Lumpur. Best Wishes

World

C-Store www.cstoreworld.com

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

David Egan PETROLWORLD

PetrolWorld Global Daily News Service www.petrolworld.com

CSTOREWORLD 38 Brook Meadow Avoca Co Wicklow Ireland

PETROLWORLD

Section 1

Feature > World View

World View

Snapshot stories from around the world Petronas Launch New High Spec Syntium CoolTech Lubricants Petronas has unveiled the new Petronas

Syntium with CoolTech, its flagship Passenger Car Motor Oil (PCMO) lubricant

brand, which has been expertly engineered to fight excessive engine heat to maintain optimum engine performance.

Amir Hamzah Azizan VP Lubricants Business of Petronas said “We at Petronas are proud to bring you Petronas Syntium with CoolTech, our flagship lubricant brand, which has been reformulated to fight excessive engine heat, enabling drivers like you and I enjoy a trouble free drive.” David Egan from PetrolWorld was in attendance and learned during the press conference question/answer brief that the international distribution of the new Petronas Syntium with CoolTech lubricant has a timeline of 18 months to its key lubricant markets outside of Malaysia. This includes China and Europe amongst other geographical targets. PETROLWORLD 210315

Total Oil Group Restructures In advance of the expected refinery restructuring today, Total said refining margins in the region had risen to a two and half year high in the first quarter of 2015. La Mede refinery in Marseille

Total’s European refining margins indicator (ERMI) rose to $47.1 per tonne in the first quarter of 2015 from $27.5 in the previous quarter. That was the highest level since the third quarter of

2012, historical data provided by the company showed. The indicator had hit a four-year low in the first three months of last year. Total group is expected to announce a restructuring plan for its French refineries that will include capacity cuts at its La Mede refinery in Marseille and investments at its Donges refinery on the Atlantic coast. Following the closure of its Dunkirk plant in 2010, Total promised not to shut any more plants in France for the following five years. In August 2015, CEO Christophe de Margerie said he did not plan to shut any refinery completely but might reduce capacity. PETROLWORLD 160415 Photo Reuters

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Feature > World View

Section 1

Review: Africa Oil Demand Remains Stable African oil product demand grew by over 4% y/y in 2014, outpacing growth in all of the other ‘BRICA’ areas, bar none. The strong performance came despite ongoing political upheaval. Even before the oil price crash, and its attendant challenges in terms of upstream investment, investor curiosity had been piqued by steady volume growth on the African downstream. The latter has traditionally been perceived as more complicated and less rewarding than the upstream, a fact which helps to explain the near-complete withdrawal of Exxon, Chevron, BP and Shell from

African refining and distribution over the past 10 years. The majors, bar Total, may have left, but others, including Vivo and Puma, are battling to replace them. The promise of volume is therefore providing reassurance to would-be investors on a continent still characterised by a patchwork of esoteric supply chains, regulatory regimes and country risk profiles. But even on the demand front, the outlook varies significantly by region and by product. Africa’s oil product demand potential nevertheless remains huge. Nearly half of Africa’s primary energy mix is still made up of biomass

(wood and charcoal) versus 22% in India. Africa’s demand potential will of course only be satisfied if industrial and retail consumers are able to purchase fuel when and where they need it. Product shortages, as evidenced by queues and rationing at the pump, are a regular occurrence in many countries and point to pent-up demand. The existing downstream oil infrastructure in many countries is creaking under the strain of higher volumes and major supply chain investment is needed to deliver the fuels of the future. CITAC London April 2015

England UK: Mobil 1 Partnership With Bentley Motorsport Mobil 1 has been appointed ‘Technical Partner’ to Bentley Motorsport and celebrate a long term collaboration. The partnership builds on the joint expertise gained as the factory fill engine lubricant of choice for models across the Bentley Motors road car range for over a decade. During its inaugural racing season in 2014, the all-new Bentley Continental GT3 race car recorded a total of five podium finishes, including three race wins, both in the European Blancpain Endurance Series and the USA-based Pirelli World Challenge. The impressive results also saw Bentley secure a second place finish in the Blancpain Endurance Series’ Drivers’ and Teams’ standings. At the heart of these achievements were nine race-prepared 4.0-litre twin-turbo V8 engines filled with Mobil 1 0W-30 Racing Oil, delivering unparalleled performance coupled with exceptional reliability and wear protection over total race mileage of 18,000 miles (29,000 km) of gruelling competition. Brian Gush, Director of Bentley Motorsport, said, “Our new Bentley Continental GT racer performed very well during its sucessful debut season. Engine reliability in extreme conditions is clearly a key component in that success and with proven performance on the road, Mobil 1 was the obvious choice for a Technology

Partner to support our motorsport efforts.”

round of testing and development for the upcoming season’s racing.”

Hauke Braack, ExxonMobil Strategic Global Alliances (SGA) Manager added, “For more than a decade we have worked together to develop and deliver peak engine performance on the road across the Bentley Motors model range. Transferring this valuable knowledge from the road to the track has proved to be a winning strategy, and we look forward to evolving our relationship during this next

Throughout 2015, Mobil 1 and Bentley Motorsport will continue to work handin-hand, as the Bentley Continental GT3 race car competes across four continents and for the first time competes in the ADAC GT Masters and Blancpain Sprint Series. PETROLWORLD 220415 Source: Mobil

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Section 1

Feature >Malaysian Fuel Retailers

COVER STORY

PetrolWorld and the Malaysia Fuel Retail & Distribution Market PetrolWorld has been associated with both Malaysia and Singapore since September 1997. With the 16th PetrolWorld Asia event taking place in Kuala Lumpur (KL) in 2015; David Egan gives his personal perspective on his first visit to Malaysia. Hotel Maya host to 16th PetrolWorld event in Asia

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Feature >Malaysian Fuel Retailers

First Visit to Oil Companies & Suppliers in September 1997 The timing of my first visit to the key oil companies retailing fuel in Malaysia and Singapore was very significant. The bank crisis in Thailand had just been world headlines. I flew into the old Subang Internatioanl Airport, the only main airport operating in KL at the time. I visited the offices of BP retail, Projet (Conoco-Sime Darby), Esso Retail; whose retail brands no longer appear in the Malaysian fuel retail market. Caltex and Shell retail had offices both in KL and Singapore (SG) which I visited along with Singapore Petroleum Corp (SPC). Construction workers were still completing the final cosmetics of the Twin Towers when I had my first meeting with Petronas Dagangan. With regards to suppliers, tank producer CN Asia and distributors Flowco, Titan and Polyfo were the first supplier meetings at that time. Other countries visited at that time were South Korea (SK & Caltex) and Japan (Idemitsu & Tatsuno). Later PetrolWorld would visit China, India, Indonesia, and the Philippine markets.

Speed of Change in Asia My second visit to KL and SG was six months later in March 1998. I flew into the newly completed KLIA and witnessed the completion of new motorway, skyscrapers and infrastructure that included fuel service stations. Coming from a conservative and slow pace Europe, the amount of change and the speed of the change was a definite feature of Asia. The other feature of my second trip to KL was an invitation to chair an oil company meeting with regards to standards and specification of underground storage tanks in Malaysia. It became obvious

Branded Fuel Tanks at CN Asia in KL

Section 1

PetrolWorld’s New Representative Office in KL

to me that there was no international platform for market players to discuss downstream regulation and standards.

A number of old and new partnerships in KL will be resurrected over the summer to support our future operational activities.

Fuel Retail & Distribution

PetrolWorld would like to take this opportunity to thank all the market players, suppliers, oil companies and others, for their support over the years. Visit our main website and register for our newsletter to be kept informed of our new schedule.

I would have to write a book to record all the petroleum downstream and retail changes that have taken place in Asia. Suffice to say that KL and SG have been central to the activities of PetrolWorld due to their international geographical location. Malaysia and Singapore have been influential fuel retail and convenience markets in South East Asia. In the next few pages, we profile BHPetrol, Caltex, Petron and Petronas Dagangan together with SPC.

PetrolWorld Returns to Kuala Lumpur It is appropriate that Kuala Lumpur will host the 16th PetrolWorld Asia event. It also marks a new chapter for PetrolWorld as it announces a new represetantive office in KL reflecting its commitment to its future schedule over the coming years.

The Future of Petroleum Downstream in Malaysia Johor Petroleum Development Corporation (JPDC). The JPDC’s stated mission is to transform the region, particularly the area known as Pengerang, into a global downstream hub. At the recent 2015 Energy Week event in Sarawak, Tun Dr Mahathir stated, “The downstream part of the oil and gas industry is far more important than the upstream in terms of future perspective.” Malaysia is currently experiencing an upswing in downstream developments after a quiet decade. Malaysia’s current Prime Minster Dato’ Sri Haji Mohammad Najib bin Tun Haji Abdul Razak has stressed the importance of downstream developments to Malaysia’s oil and gas future. His government has designated increasing downstream capacity as one of one of the key entry point projects of the country’s Economic Transformation Program.

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Section 1

Portrait > Malaysian Fuel Retailers

Malaysia – BHPetrol Fuel Service Stations: 320 Shops: 190 Products: Fuels - Lubs - Fleetcards - LPG Cooking Gas

Boustead Petroleum Marketing Sdn Bhd is a member of the Boustead Group of Companies. We started our downstream marketing business in 1964 and have established ourselves in the marketing and distribution of petroleum products from retailing fuel at our network of more than 320 service stations under the BHPetrol brand to marketing of Liquefied Petroleum Gas (LPG) and lubricants through the Syngard brand. In addition, we also operate more than 190 shops within our retail service station networks to provide further convenience. BHPetrol is committed to providing the best to our customers. For that we have developed the revolutionary advanced fuel called Infiniti Advanced2X which incorporates a proprietary additive package to enhance its performance. Infiniti Advanced2X offers more mileage and improves the engine’s performance and responsiveness. Bulk Storage Terminal - BHPetrol bulk fuels storage facility is strategically

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located at Northport Port Klang, one of premier ports in Malaysia. Also known as Northport Installation (NPI), it has 12 storage tanks, equipped with Saab Radar auto-tank gauging, fully-automated tank truck loading bay facility and automatic additives injectors. NPI stores three grades of petroleum products received directly from ships via dedicated pipelines. In addition to petroleum products, there is also a warehouse facility to store and distribute BHPetrol’s wide range of lubricant products. Logistics - BHPetrol’s road tanker fleet is fully equipped with GPS units which are constantly monitored to ensure vehicle safety and delivery integrity.

today.Listed on Bursa Malaysia in 1961, Boustead is a leading Governmentlinked company (GLC) in which Lembaga Tabung Angkatan Tentera (LTAT) is the majority shareholder, has total assets in excess of RM15.1 billion and more than 16,000 employees. Today the Group’s business interests are focused in six key divisions namely, Plantation, Property, Pharmaceutical, Heavy Industries, Trading & Industrial and Finance & Investment.

Boustead Petroleum Marketing Sdn Bhd Level 15, Surian Tower,

Boustead Holdings Berhad (Boustead), one of Malaysia’s oldest diversified conglomerates, was founded in 1828 and over the last 180 years, it has grown to comprise more than 80 listed and non-listed subsidiaries and associate companies that span across a wide cross-section of the Malaysian economy

No. 1, Jalan PJU 7/3, Mutiara Damansara 47810 Petaling Jaya Selangor Darul Ehsan

Section 1

Portrait > Malaysian Fuel Retailers

Company: Chevron Malaysia Ltd | Brand: Caltex Parent Co: Chevron Corp USA Caltex was created in 1936 as a joint venture between Standard Oil Co. of California and the Texas Co., with each having equal ownership. Fuel Service Station Network: 420 Operations: Marketing, Lubricants and Fuel Terminal. A Downstream operation, Chevron Malaysia Limited is essentially a marketing company importing fuels and lubricants from Singapore. Fuel products available in Malaysia: Caltex with Techron® fuel (Premium 95 with Techron® and Premium 97 with Techron®), Diesel, Havoline® and Delo® oils and coolant. Convenience Stores: most of the fuel retail service stations have convenience stores, Touch’n’Go top up services and Refreshrooms, in addition to Maybank ATM facilities.

History/Background Established in Malaysia since 1937, the business has undergone three name changes, the last being Chevron Malaysia Limited in April 2006. Caltex commenced business in then Malaya in 1937, with the marketing of lubricants via its Singapore Office. Caltex Oil (Malaya) Ltd was incorporated in the Bahama Islands in 1959 and assumed responsibility for the marketing of a wide range of petroleum products. In 1965, the company name was changed to Caltex Oil Malaysia Limited. With the merger of Chevron and Texaco in October 2001, Caltex became part of the ChevronTexaco family. In a move to present a clear and unified presence in the global marketplace, ChevronTexaco Corporation changed its name to Chevron Corporation in May 2005.

PETROLWORLD

All the major oil companies have developed new partnerships and ways of distributing fuel to the end user. Chevron has developed new generation of partnerships in South East Asia. If we take Malaysia, Pen Petroleum is a good example of such a partnership. Pen Petroleum Sdn Bhd is the leading branded marketer for Chevron Malaysia Limited. Pen Petroleum owns and manages a strategic network of Caltex branded fuel service stations across Peninsular Malaysia. Pen Petroleum Sdn Bhd began operations in 2003 with 13 Caltex branded fuel service stations. By mid-2010, the company had expanded to more than 130 fuel service stations located strategically across Penang, Kedah, Perak, Kelantan, Johor, Selangor, Klang Valley, Terengganu and Melaka.

Chevron Corp Overview Chevron had a global refining capacity of 1.96 million barrels of oil per day at the end of 2013. Chevron marketing network supports retail outlets on five continents. Chevron’s three fuel network brands — Chevron®, Texaco® and Caltex® — hold top positions in their markets around the world. As of 2014, the fuel service station network was a major player in the following countries: Australia, Canada, Czech Republic, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Africa, Thailand and USA.

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Section 1

Portrait > Malaysian Fuel Retailers

Petron In Malaysia – Background & Overview In August 2011 , San Miguel Corporation (SMC) entered a Sale & Purchase Agreement with ExxonMobil to purchase its downstream oil business in Malaysia, which is comprised of three companies: Esso Malaysia Berhad (EMB), ExxonMobil Malaysia Sdn Bhd (EMMSB) and ExxonMobil Borneo Sdn Bhd (EMBSB).

Petron marked its foray into Malaysia with the incorporation of its holding company, Petron Oil & Gas International Sdn Bhd and the acquisition of ExxonMobil downstream subsidiaries in 2012.

Petron Subsidiaries in Malaysia comprise of Petron Malaysia Refining & Marketing Bhd (formerly known as Esso Malaysia Berhad), a public listed company listed on Bursa Malaysia; Petron Fuel International Sdn Bhd

(formerly known as ExxonMobil Malaysia Sdn Bhd); and Petron Oil (M) Sdn Bhd (formerly known as ExxonMobil Borneo Sdn Bhd). Petron Port Dickson Refinery (PDR), which has a rated capacity of 88,000 barrels per day, produces a wide range of petroleum products which include petrol fuel, diesel, lubricant, liquefied petroleum gas (LPG), industrial and commercial fuels, and aviation. Products are distributed via tank trucks to

seven strategically-located depots and terminals ,which have been conferred many times over the years , the prestigious Malaysian Society for Occupational Safety and Health (MSOSH) Award. The Petron fuel retail marketing business encompasses over 550 fuel service stations in Malaysia. Petron’s ancillary services at the fuel service station provides a one-stop service experience to travelers on the road. This includes convenience retail store and food services.

Petron Malaysia 46 Janlan Dungun Damansara Heights Kuala Lumpur 50490 Web: www.petron.com.my

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Portrait > Malaysian Fuel Retailers

Section 1

Shell Malaysia Shell has been active in Malaysia since 1891. Shell’s business activities in Malaysia are Upstream International, Downstream, and Projects & Technology. Shell have also established several hub businesses in Malaysia, which provide services and expertise to the Asia Pacific region and, in some cases, globally.

Our business activities in Malaysia Backed by over a century of history and presence in the country, the Shell companies in Malaysia are involved in Upstream, Downstream, and Projects and Technology. Shell is one of leading the fuel retailers in Malaysia. Apart from one of the country’s largest networks of retail stations, our operations also include the world’s first commercial gas to liquids (GTL) plant in Bintulu, Sarawak, and a refinery in Port Dickson, Negeri Sembilan. Under production sharing contracts with Petronas, Shell is the largest natural gas producer in Malaysia. We also provide an increasing range of technical, human resources, financial and business support services and expertise to the Shell Group via the Shell Business Service Centre in Kuala Lumpur and Cyberjaya.

Shell Malaysia Sustainable Development Introduced in 2008, the Shell Malaysia Sustainable Development Grant programme aims to accelerate the country’s sustainable development progress by empowering Malaysia-based NGOs, local academic institutions, schools, societies and individuals to initiate projects within the ambit of sustainable development. To date, more than RM3 million has been awarded to 73 NGOs.

Shell announced during May that it was awarding over RM325,000 to support nine deserving NGOs for environmental conservation and sustainable livelihood initiatives, under its Shell Malaysia Sustainable Development Grants programme. Six of the nine initiatives benefit Sabah and Sarawak, while the rest are for initiatives in Peninsular Malaysia. Sabah-based Blue Life ecoservices was awarded the highest amount of RM100,000 for two of its projects, “Fishing for Litter” as well as “Aquaponic and Home Gardens for Better Livelihoods”, which will benefit the inhabitants of Mantanani, a remote island off the northwest coast of Sabah. “Fishing for Litter” is a project to establish a permanent organised management system for marine plastic litter as well as waste on the island’s coastlines and beaches. The NGO’s second project will be to develop home gardens and a Multi-trophic Aquaponic Greenhouse to benefit the island’s inhabitants. Presenting the grants, Guest-of-Honour Datuk Seri Panglima Masidi Manjun, Sabah State Minister for Tourism, Culture and Environment, said, “The Shell Malaysia Sustainable Development Grant programme is a great example of private-public partnerships that demonstrate how much more we can achieve when we work together. Now in its seventh year, this programme has certainly made great progress in the areas of

enterprise development, environmental conservation, knowledge transfer, and community development.” Speaking at the event, Siti Sulaiman, General Manager, Sabah, Shell Malaysia, said, “Sustainability is central to how Shell does business – it is part of our business principles and our long-term strategy. We take a very far-reaching view to meet tomorrow’s complex energy challenges in the most effective and responsible way today. However, we cannot do it alone. With the Shell Sustainable Development Grants programme, we are able to leverage the reach and insights of NGOs and other like-minded organisations to work on wider environmental and societal issues.” This year, grant recipients were selected by an independent panel of judges from a list of over 80 applicants, based on practicality of initiatives, its direct benefits, financial need, sustainability, and originality.

Shell Malaysia Facts: 125,000 barrels in refinery production capacity - 6,800 employees - 450 oil tankers distributing our products nationwide - 16 oil depots (including JVs) - 6 aviation airfields Shell Fuel Service Station Network: 950

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Section 1

Portrait > Malaysian Fuel Retailers

Key Moments for Petronas Dagangan Bhd 1981

First fuel service staiton operation at Taman Tun Dr Ismail

1982

Petronas Dagangan Incorporated

1985

First Lubricant Petronas Lubram introduced

1994

Listed on the Kuala Lumpur Stock Exchange

1996

Network Reimaging & Kedai Mesra Established

1998

Participates in 1st PetrolWorld Business Forum, Penang

2000

Petronas Primax & Mesra Cstore Website launched

Petronas Dagangan Berhad

2001

Fuel Service Station Network: 1057

2005

Involved in the distribution and sale of finished petroleum products and operations of service stations for the Malaysian market. The company has over 1057 fuel service stations across Malaysia and 725 Mesra c-stores. The company has also teamed up with food and beverage companies, banks and transportation companies to provide better services within the network. Companies include CIMB Bank, Dunkin Donuts, Kentucky Fried Chicken, Konsortium Transnasional Bhd, McDonalds and Maybank. Petronas Dagangan Berhad (PDB) is the principal marketing arm of Petroliam Nasional Berhad (Petronas). Incorporated in Malaysia under the Companies Act 1965 on 5 August 1982 and listed on the Main Board of Bursa Malaysia on 8 March 1994, PDB has since established itself as Malaysia’s leading retailer and marketer of downstream oil and gas products.

Malaysia Network The Company’s Retail Business has also grown to become Malaysia’s largest fuel

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Loyalty Programme set up Introduced pay at the pump with EMV payment retail network with over 1,000 stations and 725 Kedai Mesra throughout the country. It continues to grow through the strategic expansion of its retail stations incorporating the one-stop convenience centre concept of fueling, dining, shopping, banking, car spa and other services, all under one roof. Employees as at 2013 was 1772. Beyond Malaysia, PDB operates three (3) downstream companies namely Petronas Energy Philippines Inc in the Philippines, Petronas (Vietnam) Co Ltd in Vietnam and Petronas International (Thailand) Co Ltd in Thailand.

Petronas Dagangan To Implement Euro-M4 Petronas Dagangan Bhd will introduce RON97 fuel that complies with Euro-4M standard in September across Malaysia. Mohd Ibrahimuddin Mohd Yunus, MD and CEO told local media that the company’s fuel brands RON97, RON95 and diesel currently comply with the lower Euro-2M standard. Chairman Datuk Wan

2012

1001st Petronas Fuel Service Station opened

2013

Unveiled improved SmartPay Chip Card

2015

Launched New high spec syntium CoolTech Lubricants

Zulkiflee Wan Ariffin said that Petronas Dagangan will set aside RM500 million in capital expenditure this year for its overall growth plan, including the development of new and refurbished fuel service stations. Wan Zulkiflee said around RM300 million out of the RM500 million will be used for the retail business with the remainder to enhance logistics and fuel terminals. Petronas Dagangan currently has 1,057 fuel service stations in its network and it is planned to add another 20 sites in 2015, as well as refurbish existing fuel service stations.

Portrait > Singapore Fuel Retailers

Section 1

Key Moments for Singapore Petroleum Corporation (SPC) 1991

first to offer unleaded petroleum in Singapore

2005

introduced Ultra-Low Sulphur Diesel (ULSD) across its network

2008

first service station in Singapore with a drive-through ATM

2008

first to introduce Out-of-Home digital advertising at service stations

2008

first to launch CNG refueling at a service station in Singapore

Singapore Petroleum Corporation (SPC)

Sinagapore Petroeum Corp (SPC) marketing business is organised into five key units, namely Market Development and New Ventures, Retail Sales and Development, Commercial Sales, Lubricant Sales, and Operations and Logistics. SPC’s retail network of 40 service stations island-wide provides a total service package comprising Choices convenience store, Speedy Care automotive service centre and Manual Car Wash. Selected service stations also facilitate banking convenience with Automatic Teller Machines (ATMs) installed. Over the years, SPC continues to play a significant role in changing the landscape of its domestic market by being the first-mover of various retailing initiatives in Singapore. It should be noted that 28 of the fuel service stations were acquired when BP withdrew form the retial business in SE

Asia. SPC continues to develop its commercial fuel busienss in aviation, marine/ bunkers, tanker chartering, storage & termninals and fuel distribution.

Refining-Jurong Island SPC, with partner Caltex, owns half of the 285,000 barrels per day (45,300 m3/d) Singapore Refining Company (SRC) plant, a complex refinery capable of cracking crude oil. The refining of crude oil to petroleum products remains central to the Group’s operations. Given the complexity of its refining facilities, SPC is able to refine heavy, medium and light crudes. SPC buys crudes from some 13 countries with the bulk of its supplies coming from the Middle East.

Lee Kuan Yew 1923 – 2015 On Monday 23rd March 2015, Singapore mourned the death of 91 year old, Mr Lee Kuan Yew. LKY was an influential leader in the economic development of Singapore and very much revered by Singaporeans. SPC’s internal ‘Shine’ publication referred to him as “visionary statesman whose name will always be linked to Singapore’s economic prosperity.” I was in Singapore at the time and had a number of meetings related to our event in Kuala Lumpur. PetrolWorld used twitter and our main website to pay tribute. David Egan, PetrolWorld

www.spc.com.sg

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Section 2

Oil Company Retail Brand News > Asia: News & Updates

ASIA HEADLINE NEWS: Australia: Caltex To Expand Independently of Chevron FEATURED NEWS: Australia AACS Announces New Strategic Partnership ACCC Targets Darwin for Fuel Retail Report Caltex To Expand Independently of Chevron Caltex Australia & Chevron Share Separation Puma Energy Acquires BP Australia Bitumen Business United Petroleum May Delay Listing Woolworths CEO Admits Caltex Change had Impact

China Pollution Drives Fuel Standards Sinopec $6.4bn Bond Sale Sinopec Confirms Completion of Fuel Marketing Business Sale Chinese Mergers Considered By Authorities ICET & Fuel Economy Standards PetroChina Co Ltd Achieves Better than Expected Results for Q1

India Consortium of Indian Petroleum Dealers (CIPD) CNG Retail Marketing License CNG Retail License Bids Update All India Petroleum Dealers Highlight Local Issues BP Continues With Aviation Fuel License Dealer Organisations Creating Closer Co operation Petroleum Ministry rejects BP’s License Application for ATF Reliance Intends Reopening All Network Sites CNG Licences Change

Myanmar Ministry Considers MPPE Joint Venture for Fuel Retail Market

Nepal Earthquake & India Oil Corp Fuel Supplies New Zealand A Different View on Fuel Price Enquiry Z Energy Gets Share Target Price Rise

Pakistan Hascol Acquires Motorway Site Contracts

Papua New Guinea Puma Energy appoints New Non Executive Directors

Philippines New Seaoil Motorway Service Area for Clark Freeway Petron Corp Records Profit Drop With Lower Fuel Prices Petron Takes 8 Former Dealers to Court

Indonesia

PTT Philippines Network On Mobile App

Subsidy Change Important for Fuel Market

South Korea

Pertamina To Reduce Refinery Operation Costs

SK Group Reorganisation

Japan

Sri Lanka

Family Mart & UNY Consider Merger

CYC Petroleum Hub To Get IOC Backing

Petrobras Clarifies Okinawa Withdrawal

Malaysia Malaysia Petrol Dealers Association On Float Pricing System GST April Deadline Petron Launches ‘Fuel Happy’ Campaign Petronas Dagangan To Implement Euro-M4 Smooth Transition for GST in Fuel Retail Network Shell Advance Asia Talent Cup Test in Sepang Petronas Launch New High Spec Syntium CoolTech Lubricants

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Thailand PTT Sells Stake in Bangchak

Vietnam Central Bank Policy Includes E5 Biofuel Network Environmental Protection Tax on Fuel Petrolimex’s 2014 Q4 Losses Linked to International Oil Prices

Oil Company Retail Brand News > Asia: News & Updates

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Australia: Caltex To Expand Independently of Chevron Caltex Australia looks set to expand after Chevron’s $4.73 billion exit leaving Caltex Australia fully independent to pursue its growth ambitions. PetrolWorld notes this is the first major initiative by a major upstream oil company (since last summers falling oil prices) to reflect the difference between upstream and downstream where lower fuel prices allow greater opportunities for operations to develop. Chief executive Julian Segal said he saw no change to Caltex’s overall strategy but acknowledged that Caltex was ready to move onto its next phase of growth after strengthening its business with the closure of its Sydney refinery and its balance sheet through a cost reduction program. Mr. Segal said Caltex would look at further small and medium-sized bolt-on acquisitions and targets of $200 million to $300 million, as well as larger ones. Mr. Segal said any acquisitions would be leverage off Caltex’s four core strengths: hydrocarbon processing; retailing; supply chain management, and distribution infrastructure. Goldman Sachs underwrote the sale last Friday 27th March, of Chevron’s 135 million shares in Caltex at $34.20 a share. However, after strong demand from overseas and local institutional investors Chevron eventually got $35 a share for its

stake, giving the deal a total value of $4.73 billion, rather than the $4.62 billion at the underwritten price. The Australian Financial Review stated that the sale was the biggest block trade ever completed in Australia, trumping Shell’s $3.3 billion sell-down of its Woodside Petroleum stake last year. Chevron said it would receive the cash proceeds once settlement took place on April 2, and the gain would be recorded in its second quarter results. PetrolWorld notes we can expect further changes in the Caltex/Chevron organisation over the coming period. PETROLWORLD 300315

to our stations and find out.” Customers will be given “freebies” during the ‘Fuel Happy’ campaign period. ‘Fuel Happy’ is timely since it comes after the completion of Petron’s rebranding and upgrading program of its fuel service station network. Today, 550 fuel service stations, formerly Esso and Mobil, now carry Petron’s distinct red and blue colors, have upgraded facilities, and more importantly offer the company’s premium fuels and innovative services.

Malaysia: Petron Launches Fuel Happy Campaign Celebrating three years in the Malaysian fuel retail market, Petron has launched a new ‘Fuel Happy’ campaign to link its focus on customer satisfaction and experience at the fuel service station with the Petron Brand. Since its entry into the Malaysian market three years ago, Petron has placed a

premium on customer satisfaction, innovative products and services, and rewarding relationships. These form the Petron experience and are the take-off points for the ‘Fuel Happy’ campaign. ‘Fuel Happy’ will give customers a surprise treat every week of the month, which will begin this month and continue until December 2015 at participating fuel service stations. When asked about the surprise treats, Head of Retail Pn Faridah Ali said, “Customers will have to go

To spread more happiness, Petron has partnered with local coffee makers to offer freshly brewed coffee to customers as they discover Malaysia and travel through cities in Ipoh, Johor Bahru, Kuantan, Kuala Lumpur and Penang. ‘Fuel Happy’ is expected to reach more customers with its network expansion program. Petron completed 10 fuel service stations in 2014 and 20 more are in various stages of construction bringing the total network to 560 service stations nationwide. PETROLWORLD 310315

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Oil Company Retail Brand News > Asia: News & Updates

Indonesia Subsidy Change for Fuel Market President Joko Widodo’s attempts to reduce fuel subsidies for Indonesia will have a huge impact on the fuel retail market as well as the country. More than one million new cars and almost 8 million motorcycles are sold annually according to local statistics. Indonesia is South East Asia’s biggest economy and will be one of the world’s largest fuel importers by 2018. Indonesia liberalized its downstream market in 2001 and Shell, Total and Petronas opened fuel retail service stations but were prevented from developing in the market due to the subsidy system. In fact Petronas was forced to withdraw from the market. Emmanuel Dujeu, head of downstream operations at Frances’s Total in Indonesia stated to local media “We are looking at expansion.” Suresh Sivanandam of Wood Mackenzie said “It’s going to open up a lot more opportunities for international players.” The test will come when international oil prices go up again. PETROLWORLD 200215 See Indonesia Country Profile at PetrolWorld Archives

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Pakistan: Hascol Acquires Motorway Service Area Contracts

these retail outlets will be company operated under the brand name of Hascol.

Hascol agrees terms to operate 20 key motorway service area fuel retail sites. Hascol Petroleum Limited has entered into an agreement with Motorway Operations and Rehabilitation Engineering (Private) Limited, a subsidiary of FWO, to take l twenty motorway service area sites located on the Lahore-Islamabad motorway. The term of the agreement is for a period of twenty years, and all

The motorway service area retail outlets will be upgraded to International Standards and will be equipped with state of the art equipment and facilities. With these outlets, the HASCOL brand profile will be raised considerably in Central Punjab and will have a positive impact on the sales volume and profitability of the Company. PETROLWORLD 270415

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Oil Company Retail Brand News > Africa: News & Updates

AFRICA HEADLINE NEWS: Angola: Puma Energy Opens Marine Fuel Loading Bouy FEATURED NEWS: Ghana: GOIL & GoEnergy To Impact Fuel Market Kenya: KenolKobil Cost Cutting Reflected in Results Nambia: Vivo Marks Official Opening of B-One Fuel Service Station Major Oil Marketers Association of Nigeria (MOMAN) South Africa: Engen Celebrates One Year of Air1 Emission Reduction Zimbabwe: Total Confident of Maintaining Strong Retail Position

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Angola: Puma Energy Opens Marine Fuel Loading Bouy opportunities which help us provide safe, reliable and cost effective supply, storage and distribution solutions to our customers. This new CBM facility in Luanda provides security of supply to and from Angola as well as Africa.” The CBM is part of Angola’s long-term strategic objective to improve the country’s infrastructure endowment. Improved efficiency at the Port of Luanda will help Angola’s economy to remain amongst the fastest growing in Africa.

Puma Energy has opened one of the world’s largest conventional buoy mooring systems (CBM) in Luanda Bay, Angola. The fuel loading buoy anchored offshore serves as a strategic mooring point for Africa and it will allow a wide range of carriers to berth while loading or offloading oil product. The new CBM is located next to Puma Energy’s Fishing Port Terminal in Luanda Bay, which is currently being extended and will have a total storage capacity of 276,000m3. The CBM meets Oil Companies International Marine Forum (OCIMF) standards and can accommodate vessels up to 225,000 DWT (Dead Weight Tons) with a draft restriction of 19.3m. It has bi-directional flow and a nominal product transfer rate of 4,000 m3 per hour on both lines. The mooring buoys are fitted with navigational aids to assist with effective, safer and environmentally friendly tanker loading and berthing.

Puma Energy entered Angola in 2004 as a partner for Sonangol, Angola’s National Oil Company, in its strategic ambition to invest, redevelop and liberalise its downstream oil industry. Currently Puma Energy operates four businesses in Angola: Pumangol Retail – Petrol Station network; Pumangol B2B – direct seller of fuels to the industry; Pumangol Bunkering – bunkering of vessels and AngoBetumens – bitumen storage and distribution. Puma Energy has built lasting vital infrastructure across all 18 provinces in Angola, including bulk storage facilities, a retail network programme of near 71 fuel service station sites across the country and created thousands of jobs. PETROLWORLD 210415

Puma Energy applied its extensive infrastructure experience to construct this state-of-the-art facility – the result of which will make Angola’s Fishing Port Terminal a key site securing the supply of energy to and from Angola and Africa during a period of high demand for energy products. Pierre Eladari, CEO for Puma Energy said “We constantly assess new and strategic infrastructure investment

Ghana: GOIL & GoEnergy To Impact Fuel Market GOIL has set up a GOENERGY Company Limited, which is a Bulk Oil Distribution Company (BDC) with the objective of ensuring availability and stability of fuel supply in the country. During the last quarter of last year, GOIL, through its BDC–GOENERGY in collaboration with Bulk Oil Storage and Transportation (BOST), ensured improvement of fuel supply in the country.

Mr. Patrick Akpe Kwame Akorli, the GOIL Managing Director, in an interview with the Ghana News Agency on the sidelines of its 46 Annual General Meeting (AGM) in Accra, said the company increased its retail network with additional 14 company-owned and five venture stations. He said: “We are focused on the vision to be a world-class provider of goods and services in the petroleum and other areas of the energy industry as our geographical spread places us first in terms of the distribution of petroleum products whilst our networks enables GOIL products to reach virtually all parts of the country.

Other initiatives includes achieving International Organisation for Standardisation (ISO) 9001:2008 Certification which ensured the strengthening of GOIL’s internal control structures to guard its assets; and construction of a fuel storage tank farm at Sekondi Naval Base to boost the bunkering business. Mr. Akorli said as part of the broader measures to ensure dominance in the downstream oil industry, GOIL was strictly enforcing a national policy of maintenance of high standards within its fuel service station network of 204 sites across Ghana.

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Oil Company Retail Brand News > Africa: News & Updates

As part of GOIL’s social responsibility and consciousness, the company contributes in diverse ways to various organisations whilst constructing a number of water bore-holes to communities across the country. The company made various donations towards the development of sports, health and education among other disciplines. The AGM appointed Alhaji Abdul Razak El-Alawa, a journalist; and Mr. Damian Yelbonkang Zaato, an accountant, as Board Members to replace Mr Kojo Bonsu, the Chief Executive Officer of Kumasi Metropolitan Authority and Nii Laryea Afotey Agbo, the Greater Accra Regional Minister, who retires from the GOIL Board of Directorship. The AGM also re-elected Mr. Chris A. Ackummey, Mr. Thomas Kofi Manu, and Mr. Eugene Akoto-Bamfo as Board of Directors. PETROLWORLD 040515 Ghana News Agency

Kenya: KenolKobil Cost Cutting Reflected in Results KenolKobil’s 2014 net profit reached Sh1billion for 2014 which was a 95 percent increase compared to 2013. The increase is attributable to continued cost cutting by the company, which has lowered financial costs as well as reducing net borrowing. The firm’s operating costs fell by 25 percent to Sh1.9 billion down from down from Sh2.5 billion recorded in 2013 while cost of sales has reduced by 22 percent to 86.2 billion shillings down from 105 billion shillings recorded in 2013. Net borrowing reduced by Sh4.2 billion to Sh9.4 billion from 13.6 billion at the end of 2013 a 31 percent reduction while

cash generated from operating activities increased by 320 percent to Sh5.4 billion shilling up from Sh1.23 billion in 2013. KenolKobil’s said that it would continue with its cost-cutting measures this year. “With the view that international oil prices will continue to remain relatively low during 2015, positive opportunities are anticipated to generate improved margins,” the company said. KenolKobil who had expanded rapidly in recent years became overstretched in operational terms. Now the company is heading for recovery as market activity in East Africa rises. PETROLWORLD 0415 Nambia: Vivo Marks Official Opening of B-One Fuel Service Station Vivo Energy Namibia, which markets and distributes Shell products, has announced the official opening of the Shell B-One service station in Rehoboth. The station and is meant to serve the community of Rehoboth as well as motorists using the highway as it is located on the corner of the B1 highway. The new B-One service station will allow drivers to refill while also re-energising themselves at the convenience store. The service station offers Shell V-Power, Shell Diesel Extra, Shell Diesel 50 as well as Shell lubricants. Managing Director of Vivo Energy Namibia, Johan Grobbelaar said at the official launch last Thursday that, “Vivo Energy Namibia is committed to expanding our presence in Namibia and we are especially excited to be opening our third retail site in Rehoboth. Rehoboth is developing at an exponential rate and our focus is to make use of this growth

and invest in the town. The opening of this service station is part of an aggressive network roll out that Vivo Energy Namibia has planned for the next five years,” he said. Deputy mayor of Rehoboth Stephanus Tiboth said, “I have personally experienced the steady growth of this company in recent years, driven by a clear strategic focus on operational excellence, successful logistical planning and a ‘no compromise’ attitude towards safety and environmental management.” Vivo Energy’s executive vice president Bernard Le Goff said that, “the opening of our third retail site in Rehoboth is proof of Vivo Energy’s commitment to bring high-quality fuels and lubricants and an exceptional retail experience to customers in Namibia. The Namibian government has created a positive environment for development and investment. We will continue to identify future opportunities in the country.” Vivo Energy Namibia was established in 2012 although the Shell brand has been in Namibia since 1975. Vivo Energy Namibia has 45 retail stations with a majority having convenience retail stores. The company now employs 61 people. Vivo Energy also operates in retail of commercial fuels in Botswana, Burkina Faso, Cape Verde, Ghana, Guinea, Ivory Coast, Kenya, Mali, Mauritius, Madagascar, Morocco, Mozambique, Senegal, Tunisia and Uganda. PETROLWORLD 160315

Major Oil Marketers Association of Nigeria (MOMAN) Downstream operators in the Nigerian petroleum sector are under pressure to reduce their costs including staff reductions. The oil marketers, operating in a subsidy payment system within downstream, claim huge subsidy arrears owed to them by the government has now impacted their cash flow to a serious operational level. Confirming this in an interview with our correspondent, the Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Thomas Olawore, said in 2013, MOMAN was controlling 60 per cent of the retail market, while the Nigerian National Petroleum Corporation was in charge of the remainder.

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“But now, MOMAN is controlling less than 40 per cent of the retail market, while the NNPC is controlling over 60 per cent,” he said. Olawore explained that the problem was not limited to the association’s members, but also extended to members of the bulk storage Depot and Petroleum Products Marketers Association. According to local media Punch, the editor says aggregate subsidy arrears owed the marketers by the Federal Government was put at N354.4bn. This amount includes the N98.2bn that the Federal Government issued a Sovereign Debt Note (a post-dated financial instrument) for, expected to mature at the end of last month. The actual subsidy for the period was put at N40.3bn, while the value of the foreign exchange differentials and accrued interest was N215.9bn. He said in March and April this year, the government made a part payment of N37m for foreign exchange differentials but did not pay the accrued interests or the actual subsidy. The MOMAN spokesperson said the country would be in for another round of product scarcity if the current situation were not addressed. PETROLWORLD 040515 Source: Editor Punch NG

South Africa: Engen Celebrates One Year of Air1 Emission Reduction A year after introducing Air1, Engen’s efforts have seen a steady rise in its uptake across South Africa. Sydney Bruckner, Project Manager: Emission Fluids at Engen says South Africa is committed to reducing CO2 and NOx gas emissions by 34% by 2020, and 42% by 2025. The energy and transport sectors have been identified as key sectors in this drive. Currently, legislation in South Africa only requires diesel vehicle compliance with Euro 2 emission standards. A small but growing number of Euro 5-configured trucks operating in the country are already fitted with SCR units.

phosphorus and sulphur] lubricants. “As the only company to provide all of these products, Engen is the one-stop AdBlue® emission fluid shop for transport companies”, adds Bruckner. While modern diesel vehicles fitted with SCR systems are an additional capital investment, fuel savings should cancel out this extra expense over time, he says. Consumption is approximately 3%-5% by volume of diesel consumption, differing according to the type of engine and the work it does. The AdBlue® tank, which is normally fitted adjacent to the diesel tank, would typically require filling every time driver’s refuel with diesel.

Zimbabwe: Total Confident of Maintaining Strong Retail Position Total says it expects to maintain its dominance in Zimbabwe’s fuel retail market despite the re-emergence of international competition. Total Zimbabwe managing director Christopher Okonmah told local media that the company would maintain its market share at a time of change and reorganisation in the industry. “We do not see ourselves revising our market share. At the moment we are the market leader and we do have over 24 percent of the market,” Okonmah said at the launch of the group’s solar lantern products.

AdBlue®, used in conjunction with selective catalytic reduction (SCR) units in exhaust systems, reduces nitrogen oxide (NOx) emissions in diesel engine exhaust gases in line with more stringent emission regulations. Air1, which is offered by Engen, is used in conjunction with low-sulphur diesel and low-SAPS [sulphate ash,

Engen’s own bulk fuel transport fleet replacement initiative focuses on models that run on low-sulphur diesel and meets the Euro V emission standards. AdBlue®, marketed under the Air1 brand, is available at Engen Truck Stops, select service stations, and at a number of Engen supplied truck and car franchised dealership outlets across South Africa. PETROLWORLD 220415

Sydney Bruckner, PM, Engen

Puma Energy has acquired Redan Petroleum and Sakunda creating a network of 62 fuel service stations, while Engen is another international brand that has expanded its operations in Zimbabwe. However Total Zimbabwe has a network of 100 sites. PETROLWORLD 270415

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

MIDDLE EAST HEADLINE NEWS: Oman Oil Production Remains Stable FEATURED NEWS: Saudi Arabia: Tas’helat Wins License to Build and Operate Sahel Fuel Stations across the Kingdom’s Highway network Saudi Arablia: Petromin & Hyundai Sign Lubs Deal UAE: Service Station Queues Blamed on Credit Card Processing Time

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Oman Oil Production Remains Stable

Salim Al Oufy, undersecretary at the Ministry of Oil and Gas, said oil production in 2014 rose marginally by 0.2 per cent to 943,000 barrels per day compared to a year earlier. The average gas production dropped by 3.8 per cent in 2014 to 97.8 million cubic metres per day over the production in 2013. “We will keep production at around 950,000 bpd to protect overproduction for some time. We will continue at this level, but it does not mean we will stop being aggressive in production,” said Al Oufy. At the end of 2014, Oman’s total crude oil reserves and condensates were at 5.306 billion barrels and 24.3 trillion cubic feet of gas.

Oman’s long-term crude oil output is fixed at around 950,000 barrels per day (bpd) as the Sultanate seeks to safeguard its production in the background of lower prices.

The government spent $11.5 billion in 2014 for oil and gas drilling and other related projects, affirming its commitment to maximise its investments in the key energy sector, which makes up 80 per cent of its total revenues, revealed Al Oufy. The average price for Omani crude oil in 2014 was $103.23 per barrel, a 2.16 per cent drop from 2013. Oman based its 2014 budget at $75 per barrel. In 2015, Oman has based its fiscal budget at $85 per barrel but currently international oil is trading at around $56 per barrel. PETROLWORLD 170415

Petromin has expanded and diversified its business over the years and is a house of opportunity for auto dealers in strengthening their after sales services, utilizing the Petromin Express service centers and its other retail outlets under Petromin. Petromin fuel service stations are emerging leaders in the modern fuel retail market of Saudi Arabia. Sameer A. Fakeeh, EVP, domestic sales Petromin, said the relationship between Petromin and Al Majdouie spans decades and he has been looking forward to serve them for years to come Yousef Al-Majdouie, CEO Al -Majdouie Autos, expressed his confidence over the partnership.

Saudi Arabia: Petromin & Hyundai Sign Lubs Deal Petromin has signed a five-year partnership with Hyundai-Al-Majdouie to serve its premium motor oils at all Hyundai service centers in the Eastern Region.

The contract signing ceremony, in which executives and senior managers from both organizations took part, took place in Alkhobar. Petromin Corporation CEO Samir Nawar said the event marked the beginning of a progressive partnership between both organizations.

“Petromin has been a long-standing partner and we are confident that this cooperation will back up the high standard performance of Hyundai cars and the after sales service provided by Al Majdouie,” he added. The contract also covers the supply of Petromin premium diesel engine oils to Al Majdouie Logistics for the next five years. PETROLWORLD 010515

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

UAE: Service Station Queues Blamed on Credit Card Processing Time Long waiting times at fuel service stations have become a feature experience for consumers across the UAE. In August last year, fuel service stations introduced credit card payments with an additional fee of Dh2 levied to avail of the service. While the move was widely welcomed by consumers, card payments have extended payment processing time. Motorists paying by cards usually block the fuelling area for a further two to five minutes, which extend the waiting time. Fuel retail operators confirmed an uptick in demand owing to the development of new communities – both in Dubai and Abu Dhabi. Enoc which operates 113 stations in Dubai and Northern Emirates said it plans to build more stations over the next five years. The company’s expansion plans are centered on growth in car registrations. Enoc is planning to build 50 additional service stations in Dubai over the next five years to keep up with the growing number of cards. Speaking to local media a spokesperson at Enoc said: “We understand that the current number of service stations

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operated by petroleum retailers is getting close to being inadequate to serve the demand. However, we also recognise that building new stations requires not only financial resources but the availability of locations.” “Last year, Enoc installed retractable hoses in fuel pumps at high-traffic Enoc and Eppco service stations. These hoses allow the safe refuelling of vehicles from any pump, regardless of the location of the fuel tank inlet of any car. This has significantly reduced queuing at our sites, which averages around 1,500 customers per day.” Highlighting the challenges in building more stations, the spokesperson explained: “Being a Dubai company, we also have to align with Dubai’s overall development plan; and there is also the challenge of bringing in qualified manpower from overseas to man these sites. All these factors — and not only the yearly increase in the number of vehicles — are being considered in our short, medium and long-term business plans. In Abu Dhabi, Adnoc Distribution is also planning to expand the number of fuel service stations. The company’s expansion strategy seeks to increase the total number of service stations operated

by the company to 507 as part of the business plan for 2015-2016. The plan includes the inauguration of the first floating service station in the Arab world and the introduction of smart service station facilities across the entire network. Abdulla Salem Al Dhaheri, CEO of Adnoc Distribution, said: “In order to achieve the highest standards of customer satisfaction, we are opening service centres closer to the vehicle owners. Our corporate customers will also benefit from such services in key business areas. Our expansion strategy for 2015 aims to increase the number of vehicle inspection centers and enhance the superior quality of services provided. Adnoc Distribution presently operates 18 vehicle inspection centres in the emirate of Abu Dhabi, six of these are in the Abu Dhabi area, six in the Western Region and a further six in Al Ain.” In the UAE, fuel prices are subsidised as a government policy. Fuel distribution companies rely on retail sales and valueadded services to increase revenues and counteract the subsidy factor. This also affects the expansion of any network. PETROLWORLD 060315 Source:khaleejtimes

Oil Company Retail Brand News > Saudi Arabia: Tas-Helat Fuel Retail

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Saudi Arabia: Tas’helat Wins License to Build and Operate Sahel Fuel Stations across the Kingdom’s Highway network Riyadh, April 14 2015 Tas’helat Marketing Company (TMC) has announced this week that it has been granted a license by the Kingdoms Ministry of Municipal and Rural Affairs allowing it to build and operate Tas’helat/Sahel fueling stations across Saudi Arabia’s highway network. The license was presented to the Company by the HE Abdullatif bin Abdulmalik bin Omar Al Al-Sheikh, Minister of Municipal and Rural Affairs, and accepted on behalf of Tas’helat by Engr. Ahmad Al Falah, President Tas’helat Marketing Co. With the awarding of the license, Tas’helat becomes one of only five companies licensed to operate on the Kingdom’s highway network. The criteria for obtaining the license sees companies evaluated on a number of key factors including those related to management,

technical, operational and financial strength. Tas’helat’s successful application underscores the highly efficient and innovative nature of its network and the service it has delivered to customers over the last 58 years. A “brand of choice,” Tas’helat is defined by high levels of modernization, automation, customer service and quality that have become the hallmarks of our business. The license is also significant in Tas’helat’s plans to continue to expand market share within the Kingdom of Saudi Arabia. Tas’helat operates of one of the largest networks of retail fuel stations across the Kingdom consisting of 270 outlets in over 25 cities and highways. With the granting of the license, Tas’helat will be well positioned to significantly advance their 10 years growth

plan. This ambitious development plan includes a target of 500 plus fuel service stations. Tas-helat Marketing Company operates as a retail fuel distribution company in the Kingdom of Saudi Arabia. It offers fuel and related products to governerate police and fire brigade sectors. The company’s services also include cash sales and prepaid cards. In addition, it offers lube change, car washing, and tyre repair services, as well as operates convenience stores at stations. The company serves customers by providing fuel at their door steps for bulk quantities. Tas-helat Marketing Company was founded in 1998 and is based in Riyadh, Saudi Arabia. Tas-Helat will be represented at the PetrolWorld Conference & Business Meeting in June 2015 PETROLWORLD 0215

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Oil Company Retail Brand News > Europe: News & Updates

EUROPE HEADLINE NEWS: EU Parliament Votes to Cap Interchange Fees FEATURED NEWS: Czech Rep: Unipetrol To finalize Stake in Ceská Refinery England UK: Network Numbers Bottom Out France: Total Oil Confirms Refinery Roadmap Ukraine: Yandex Mobile Fuel Payments App

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Central Management anytime, anywhere

Innovative Cloud services Customer oriented payment solutions Petrol station management systems Promotion tools Outdoor payment terminals Dispensers Service support

www.scheidt-bachmann.com

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Oil Company Retail Brand News > Europe: News & Updates

EU Parliament Votes to Cap Interchange Fees

The European Commission welcomes European Parliament vote to cap interchange fees and improve competition for cardbased payments The European Commission welcomes the adoption by the European Parliament of a Regulation capping interchange fees for payments using consumer debit and credit cards and improving competition for all card payments. The Commission estimates that the rules, when implemented, could lead to a reduction of about €6 billion annually in hidden fees for consumer cards. The “Regulation on Interchange Fees for Card-based Payment Transactions”, which largely follows a Commission proposal from July 2013, will also give more freedom of choice to retailers, enhance transparency for card transactions, and pave the way for innovative payment technologies to be rolled out. When a customer pays for a purchase in a store using a credit or debit card, the bank that serves the store (the “acquiring

bank”) pays a fee to the bank that issued the payment card to the consumer (the “issuing bank”). A so-called “interchange fee” is then deducted from the final amount that the store merchant receives from the acquiring bank for the transaction. Today, only competition rules limit the fees set by banks and payment card schemes, which are hidden from the consumer and neither retailers nor consumers can influence. When retailers pass these costs on to consumers this can of course lead to inflated prices. In its MasterCard judgment of September 2014, the European Court of Justice made clear that such interchange fees are a violation of EU antitrust rules. The Regulation will help the card payments industry move from its current business practices to a new more competitive system, to the benefit of consumers, merchants and banks. As a general rule, the Regulation will cap interchange fees at 0.2% of the transaction value for consumer debit cards and at 0.3% for consumer credit cards. For consumer debit cards, it also gives flexibility to Member States to define lower percentage caps and impose maximum fee amounts. Besides capping interchange fees, the Regulation also increases transparency on fees and will enhance competition for payment card schemes and banks by e.g. addressing licensing issues and other conditions that have restricted the freedom of choice of retailers. Furthermore, the Regulation removes major obstacles to technological innovation in payment options. Technologies that allow consumers to pay with their debit or credit cards online or using their mobile phones are readily available. However, uncertainty on the rules regarding interchange fees has been one of the factors holding up the use of these technologies. Commissioner Margrethe Vestager, in charge of competition policy, said: “For too long, uncompetitive and hidden bank interchange fees have increased costs of merchants and consumers. Today’s vote has brought us another step closer to putting an end to this. This legislation will put a cap on interchange fees, make them more transparent and remove a hurdle to rolling out innovative payment technologies. It is good for consumers, good for business and good for innovation and growth in Europe. As cards are the most widely used means of online payment, this Regulation is also an important building block to complete the European Digital Single Market.” Commissioner for Financial Stability, Financial Services and Capital Markets Union, Jonathan Hill said: “I welcome this vote which will bring transparency and legal certainty for the credit card market. It also paves the way for more innovation and competition in the field of online and mobile payments. Crucially, merchants will see the costs of payments fall, which should in turn drive down prices for consumers.” The legal text voted on by the Parliament still needs to be formally approved by the Council, which is expected before the summer this year. PETROLWORLD 100315

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indicates that the trend for fuel service station closures has flattened out. The total number of fuel service stations in the UK at the close of 2014 stands at 8,609 sites, broadly in line with the 2013 figure of 8,611. This follows a 20-year period where we have seen a dramatic reduction in numbers of forecourts, almost halving the number that was in existence in 1994. UK consumer fuel prices experienced the same downward trend as the global market, with petrol dropping from an average of 134.88 p/l in 2013 to an average two-year low of 128.18 p/l in 2014, and from 140.74 p/l for diesel to 133.82 p/l.

Czech Rep: Unipetrol To finalize Stake in Ceská Refinery Unipetrol, subsidiary of PKN ORLEN, welcomes the Office for the Protection of Competition final decision regarding the purchase of Eni’s 32.445% stake in Ceská rafinerska. After the transaction closes, which is expected in the second quarter of this year, Unipetrol will become a sole shareholder of Ceská rafinérská. “In particular, we decided to purchase the stake in Ceská rafinérská to ensure the feedstock for our petrochemical production, which will be the main producer of the group’s profit in the future,” says the CEO and Chairman of the Management Board of Unipetrol, Marek Switajewski. “The acquisition opens up possibilities for further improvements of the operational management of the Czech refineries and will enable strategic control over these assets. We expect an improvement especially in terms of operational cost savings,” adds Marek Switajewski. After the acquisition of Shell´s stake in early 2014, Unipetrol’s share in the share capital amounts to 67.555%. After the completion of the transaction with ENI, Unipetrol’s share will increase to 100%. CESKÁ RAFINÉRSKÁ, a.s. operates refineries in Litvínov and Kralupy nad Vltavou, currently the only two refineries in the Czech Republic. The refinery in Litvínov - Zálu?í is a modern comprehensive refinery with high hydro refining capacity operating two crude oil

distillation units, four conversion units, and a number of technological facilities for improving the quality of primary distillate products. The total processing capacity is 5.4 million tonnes of crude oil per year. Since 2001, the refinery in Kralupy has been a comprehensive conversion refinery with a modern fluid catalytic cracking unit (FCC), by which was developed the previous hydro-skimming refinery with a processing capacity of 3.3 million tonnes of crude oil a year. UNIPETROL, a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005, UNIPETROL became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution, and petrochemical production. In all of these business areas the UNIPETROL Group is among the key players, both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of revenue, and employs 3,600 people. PETROLWORLD 010415 England UK: Network Numbers Bottom Out After 20 years of the fuel service station network in the UK contracting, the 2014 figures show network numbers remaining the same. The latest Retail Marketing Survey, conducted by the Energy Institute (EI) and published as a supplement to the EI’s April issue of Petroleum Review,

Total 2014 road fuel sales for the year saw a 1.77% rise from 36mn tonnes to reach 36.64mn tonnes, with diesel sales once again outperforming petrol. Retail petrol sales remained fairly stable at 13mn tonnes by year end (from 12.99mn tonnes at the close of 2013), while diesel sales rose to 15.16mn tonnes (up from 14.09mn tonnes). Meanwhile, the total number of cars on the road rose 1.95% to a record-breaking 35.89mn. The annual Retail Marketing Survey provides a comprehensive, statistical overview of the UK forecourt market. Data is broken down by company, region and forecourt facilities. This year’s report is based on statistics relating to end-2014 and does not reflect changes since that date. These figures are collected from an EI survey with fuel retailers and are cross-checked with numbers from market analyst Experian Catalist. Key findings of the survey show: There were 8,609 operational filling stations in the UK at end-December 2014. Retail petrol sales remained fairly stable at 13mn tonnes by the close of 2014 – from 12.99mn at end-2013. Retail diesel sales totalled 15.16mn tonnes by year-end – up from 14.09mn tonnes a year earlier. Total 2014 road fuel sales rose slightly to 36.64mn tonnes – up from 36mn tonnes in 2013. By the close of 2014, unleaded petrol prices had averaged 128.18 p/l (versus 134.88 p/l in 2013); while diesel prices closed the year at an average price of 133.82 p/l (versus 140.74 p/l).

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Oil Company Retail Brand News > Europe: News & Updates

Registered UK vehicles once again broke records, rising from 35.21mn in 2014 to reach 35.89mn by end-2014, with each forecourt supplying an average of 4,170 vehicles. Site number breakdown by fuel retail brand in 2014 (2013 figures in brackets): •

BP led the forecourt branding field, topping the listing with 1,163 outlets (1,174)

•

Shell secured second place, with 1,019 branded sites (1,016)

•

Esso was close behind, in third position, with 1,012 branded forecourts (1,003)

•

Texaco was ranked fourth, with 773 outlets (814)

•

Gulf is fifth, with 508 branded service stations (409)

•

The supermarket sector accounts for just over 43% of total UK fuel sales:

•

Tesco – 504 sites (498)

•

Morrisons – 332 (326)

•

Sainsbury’s – 298 (289)

•

Asda – 246 (226)

This year’s supplement also includes articles looking at security of fuel supply in the UK and the need for planning to prevent future supply disruption should

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the number of operating refineries continue to fall. The report examines the latest trends and developments in the fuel retail market, where opportunities for independent forecourt retailers appear to have taken a turn for the better; and how the success of fuel retailers can be defined by the speed at which they respond to changes in the wholesale price of oil. If you would like details on how to acquire a copy, please email: [emailprotected] and we will forward appropriate details. PETROLWORLD 290415 France: Total Oil Confirms Refinery Roadmap Paris– Total has presented its French refining roadmap to employee representatives. The plan is designed to give each Total’s refining site in France the means to resist in a volatile environment and perform profitably. Under the plan, Total will invest to upgrade the Donges refinery in western France and transform the La Mède refinery in southern France, to ensure they thrive going forward. Three of Total’s five refineries in France — Gonfreville in Normandy, Grandpuits

in the Paris region and Feyzin near Lyon — demonstrated their ability to withstand the deteriorating economic environment in 2013 and 2014 and generate ongoing income streams. The other two, Donges and La Mède, are struggling and are structurally loss making. To address the situation, Total has presented a comprehensive plan to improve both refineries’ performances and secure their long-term future. An investment of €200 million will be made to transform the La Mède refinery and in particular create France’s first biorefinery, which will be one of the biggest in Europe, to meet growing demand for biofuels. Crude oil processing will be halted at end-2016. An investment of €400 million will be made to upgrade the Donges refinery to capture profitable new markets with low-sulfur fuels that meet the evolutions of European Union specifications. “There are three possible responses to the crisis in the European refining industry. The first is to throw in the towel. The second is to do nothing and perish. The third is to innovate and adapt to meet shifting demand trends. The central focus of Total’s plan for our French refining business is to realign our operations and products to changing markets. The

Oil Company Retail Brand News > Europe: News & Updates plan that we are presenting today offers sustainable solutions for the Donges and La Mède refineries. It gives both facilities a future and strengthens Total’s refining base in France,” commented Patrick Pouyanné, Chief Executive Officer of Total. “As was the case for the project to secure the future of the Carling plant in eastern France, the master words for the plan’s deployment are: anticipation and consensus. Total will implement this industrial transformation without layoffs or imposed geographical transfers for non-exempt employees.”

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European demand for petroleum products has declined 15% since 2008, shrinking outlets for the continent’s refining industry. This underlying trend stems from pursuit of energy efficiency and improved vehicle fuel economy as part of the European Union’s commitment to reducing its carbon footprint. The European market is steadily contracting, a situation aggravated by the shale oil and gas revolution in the United States, which gives the U.S. refining industry an advantage, and competition from refineries in Asia and the Middle East. These two trends shut European refineries out of some of their domestic and export markets and have exacerbated excess refining capacity in Europe. As Europe’s leading refiner, Total is therefore continuing to adjust its production base in France, following the shutdown of the Flandres refinery (2010), the upgrade the Normandy refining & petrochemicals platform (2012) with an investment close to €1 billion and the implementation of the project to secure Carling’s future (2015). Including the adaptation plan for the Lindsey Oil Refinery in the United Kingdom announced earlier this year, Total will have successfully adapted by 2017 its European refining base to the market and cut its refining and petrochemical capacity by 20% in Europe in 2017, as announced in 2012. PETROLWORLD 160415 Ukraine: Yandex Mobile Fuel Payments App Ukrainian drivers can now pay for fuel at more than 1,300 outlets across the country using a mobile payment service launched by Russian internet company Yandex, in partnership with PrivatBank and MasterCard.

To use the service, the driver links a payment card from any registered bank in the country to the Yandex Refueling app. On arrival, they select the fuel station from a list of available locations in the app, enter the pump number and the type of fuel they require. After specifying the amount they want to pay or the quantity of fuel needed, they confirm the transaction. Once the payment is made, the selected pump will unlock and allow the driver to refuel. “Currently, it’s opened at 1,306 fuel service stations in Ukraine and the number of stations continues to grow,” PrivatBank told NFC World. “The end-ofthe-year plan is to increase the number of stations to 2,000. “Also, for each transaction customers make using this service they will get a special bonus back, which is a certain percentage of the payment amount. For example, if I put 40 liters into the car, I will be credited 40 Hryvnia (US$1.88) into my bonus account — about 5% of the amount of filling.” “Innovative technologies and solutions help create a world without cash; this project is proof,” says Sergey Francisco, of MasterCard Europe in Ukraine. PETROLWORLD 040515

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Feature > European Energy Union

Interview with UPEI Bruxelles

Earlier this year the EU Commission announced new priority and strategy on Energy Union in Europe. PetrolWorld recently caught up with Mr. Thierry De Meulder, President of UPEI.

The European Commission recently published a Strategic Framework to set up an Energy Union. Do you see this as a challenge or an opportunity? Firstly I would say that I undoubtedly welcome the focus on energy that the new European Commission, headed by President Juncker, has adopted. The fact that energy is recognised for the key role it plays in Europe’s economy has to be positive and all players must see this as an opportunity. One cannot argue with the objectives that the European Commission has set, namely to deliver a secure, sustainable, competitive and affordable energy supply to the EU’s citizens and businesses. However, having said that, as President of UPEI, I am calling for the European Commission to take full account of the reality of the EU’s energy mix when rolling out the

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initiatives that are listed in the Strategy and this is a challenge for us as, representing independent oil suppliers.

Are you saying that the European Commission’s proposals for an Energy Union are unrealistic? No, I believe there is some very good elements in the paper, which is, based around 5 dimensions: security of supply, completion of the internal market, moderation of demand, decarbonisation and lastly research and innovation. It is essential to address all of these dimensions if we are to achieve a true Energy Union. However, where I am concerned about the lack of realism is in the way the European Commission proposes to tackle each of these dimensions. And here we need to take a step back and understand the context of the proposal.

2014 was dominated by the crisis in the Ukraine, which sent security of energy supply to the top of the political agenda. Europe’s vulnerabilities with regards to gas and electricity supply became very apparent, given the dependence of a number of European countries on Russia as their sole supplier as well as deficiencies in infrastructure and inter connectivity. Therefore, it is evident that the Strategy should address these weaknesses. What I do regret, however, is that the analysis of the problem is perhaps over simplified. You see, at the same time, Europe is pursuing an agenda of a low carbon future, heavily promoting renewables, which, of course, have a place in Europe’s energy mix. However, today, they are not the solution for delivering on a secure, competitive and affordable energy supply to Europe. Once the

technologies mature and they become more affordable their market share will undoubtedly develop. However, in the meantime Europe needs to draw on all its available resources and infrastructure and recognise the contribution that each energy source can play, within the five dimensions of the Strategy.

So is the Energy Union Strategy too focused on renewables then? I don’t think you can say that. I believe that Europe has a role to play in leading the way in developing sustainable solutions to our energy and climate problems. But this is precisely where we need to be realistic. Today, we are fighting battles on many fronts: security of supply, affordability, and sustainability… I think there are different solutions to different problems and we need to ensure that the policy allows flexibility in the solutions that we adopt. Oil is a fantastic product. We have invested in setting up a comprehensive system of compulsory stocks (paid for by the consumer). The infrastructure is well established and we have the possibility to diversify our supply routes. It is a product that is easy to combine with renewable alternatives as they come on stream. Let us look at the example of biofuels for the transport sector, or the hybrid heating systems that are on the market today. We need pragmatic policies that encourage this sort of innovation and bring practical solutions to Europe’s consumers rather than rhetoric on fossil fuels, which discourage new investments in this direction.

What do you see is the role of fossil fuels in the future? The European Union has adopted an aggressive policy on decarbonisation of the transport sector for example. You are right and this is what I mean about realism. First of all, we must recognise the progress that has already been achieved in cleaning up the transport sector. We have numerous directives be it the Fuels Quality Directive, the renewable energies directive or the latest one adopted in 2014 on the deployment of alternative fuels infrastructure. These are all important developments and this trend will undoubtedly continue. But UPEI will certainly continue to call for technology neutral policies to pursue this agenda further. We must remember that energy is a global business and

Feature > European Energy Union Europe must remain competitive both internally and externally. It is, therefore, very important how we handle this transition to, what I prefer to call, a low carbon economy. I believe that the consumer does not want oil to disappear completely from the energy mix. The product is simply too good. It is easy to store and thus available, affordable and the infrastructure is established. It is also an important part of Europe’s economy – that is something we should not forget. That Europe’s oil consumption is in decline and will continue to decline is a fact. The welcome emphasis on energy efficiency will be a contributing factor as well as the emergence of alternative energy sources. However, policy makers should embrace the contribution that oil can make, even in a low carbon economy, and we should try to elaborate a truly holistic approach to Europe’s future energy landscape, maintaining maximum flexibility in terms of energy sources and supplies. This message is not one that is coming through strongly enough in the Energy Union Strategy, which describes fossil fuels as operating on a “centralised, supply-side approach” relying on “old-technologies and outdated business models”. This is not at all the oil sector that I am representing! So you see we have big challenges ahead!

Are you optimistic about the future? If I were not optimistic then I would not remain in this business! Independent fuels suppliers have at the core of their business model flexibility and innovation. The entrepreneurial drive is very strong and that’s what makes it such an exciting environment. Wherever there are challenges, there are also opportunities and I am sure that independents will find their way. But in order to help them, we need to ensure a level playing field. That is the core mission of UPEI which is the voice of Europe’s independent fuel suppliers and which I am honoured to head as President.

UPEI, the Union of European Petroleum Independents, represents the independent downstream oil sector, principally SMEs, whose main business is to source and supply oil and other energy products in Europe.

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

north america HEADLINE NEWS: North America: Getty Realty Receives Settlement Payments FEATURED NEWS: Hawaii: Par Petroleum’s Brand Strategy Kwik Trip Expands CNG Network & Supply Pearson Fuels Celebrates Alternative Fuels Expansion U.S. Oil Acquires Terminals From Marathon Petroleum

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

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North America: Getty Realty Receives Settlement Payments

approved by an order of the U.S. Bankruptcy Court, and, on April 22, 2015, the Company received an interim distribution from the Marketing Estate of us$6.8 million on account of the Company’s general unsecured claims. The Company expects to receive additional distributions from the Marketing Estate during 2015 on account of its general unsecured claims, however, the Company cannot provide any assurance as to the timing or the total amount of such future distributions.

Getty Realty Corp. has announced this week that it received two payments from the Getty Petroleum Marketing Liquidating Trust. On March 3, 2015, the Company entered into a settlement agreement with the Liquidating Trustee of the Marketing Estate to resolve claims asserted by the Company in Marketing’s bankruptcy case. The Settlement Agreement was

Hawaii: Par Petroleum’s Brand Strategy

Par Petroleum Corp is to come up with a new branding strategy over the coming months to enhance its position on the island state.

The Settlement Agreement also resolved a dispute relating to the balance of payment due to the Company pursuant to the Company’s agreement to fund the lawsuit that was brought by the Liquidating Trustee against Lukoil Americas Corporation and related entities and individuals for the benefit of Marketing’s creditors. As a result, on April 22, 2015, the Company also received an additional distribution of approximately $0.6 million from the Marketing Estate in full resolution of the funding agreement dispute. PETROLWORLD 280415

In 2013, Par Petroleum’s subsidiary, Hawaii Independent Energy, closed on its purchase of the former Tesoro Corp.’s Hawaii refinery and other assets, including its fuel retail network for close to $400 million. It also recently completed the $107 million acquisition of

Mid-Pac Petroleum, which now brings its employee total to more than 700 people and its retail network total to 116. The service stations currently have different brands that include Tesoro, 76 and 7-Eleven Lance Tanaka, spokesman

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

for Par Petroleum, informed local media that 31 Tesoro-branded retail service stations in Hawaii would eventually be rebranded, although no timeline has been set. Joseph Israel , president and CEO of Par Petroleum, has given a timeline of 3 months for a brand strategy and timeline. A local company OmniTrak Group, a Honolulu research and market planning firm, has been employed to assist with the exercise. OmniTrak is to carry out surveys and putting together focus groups for the rebranding effort. PETROLWORLD 100415 Source PacificBusNews

Kwik Trip Expands CNG Network & Supply Kwik Trip Continues to expand its CNG network with new sites but also on the commercial side with supply to Allenergy. AllEnergy Corporation has chosen Kwik Trip, Inc. to provide energy to the drying plant of AllEnergy’s proposed production operations. Kwik Trip will provide CNG (compressed natural gas) to the operation during the winter months when pipeline supply of natural gas is limited. PetrolWorld also notes recent CNG servcie station sites opened in Davenport, Iowa, and Lake Mills and Eau Claire, Wincosin. Kwik Trip opened its first CNG location in April 2012 and has continued to develop a CNG fueling infrastructure throughout Wisconsin, Minnesota and Iowa. Kwik Trip’s CNG locations can be

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found in the following areas: La Crosse (2), Sturtevant, Oshkosh (2), Baldwin, Wausau, Waukesha, Janesville, Sheboygan, Appleton, Verona, Menomonie, Lake Mills, Plover, Oak Creek, De Pere, and Eau Claire, Wisconsin; Rochester, Minnesota City, Owatonna, Mankato, Eagan and St. Michael, Minnesota; Cedar Falls, Waterloo and Davenport, Iowa. It opened an additional four CNG sites in the autumn of 2014, including Superior, Fond du Lac and Windsor, Wis., as well as Austin, Minn. Kwik Trip’s own distribution fleet, Convenience Transportation, runs a fleet of 65 Class 8 natural gas vehicles, with plans to continue the conversion of the entire fleet. Additionally, the company uses 42 light-duty natural gas vehicles. Kwik Trip is based in La Crosse, Wisconsin, and operates more than 400 convenience stores in three states-Wisconsin, Minnesota, and Iowa. PETROLWORLD 030415 Pearson Fuels Celebrates Alternative Fuels Expansion This week Pearson Fuels and G&M Oil Company, celebrated the opening of their latest E85 Flex Fuel service station at 499 Sandalwood Drive, Calimesa, California. The event is intended to kickoff the announcement of 13 E85 site openings built through a collaboration between Pearson Fuels and G&M Oil. The fuel service stations will all be located in Southern California in San Bernardino,

Orange, Riverside and San Diego counties. According to PetrolWorld, Pearson Fuels was the first independent fuel retailer to set up an official alternative fuel service station. Pearson Fuels participated in the PetrolWorld Business Forum of 2009 held in Langkawi and Mike Lewis took part in a special presentation and discussion on the development of alternative fuel service stations. There are approximately 1 million vehicles on the road in California that are capable of using blends of ethanol as high as 85 percent. These vehicles are referred to as Flex Fuel vehicles and can be identified by a “Flex Fuel” nameplate on the car or by labels in the gas filler area. Many of these vehicles also have yellow gas caps for easy identification. In the United States, the ethanol used in E85 continues to be produced primarily from corn. However, there have been major technological improvements that have contributed to more advanced production plants and a more advanced fuel made from agricultural waste products and other non-food sources are coming on line soon. Pearson Fuels General Manager, Mike Lewis states, “We are very proud to make this announcement. We have been opening these E85 sites one and two at a time for years but it is a whole new level to declare our plans to open 13 sites in 13 months. The alternative fuel industry is no stranger to outlandish claims of what people are going to do which so

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

Mike Lewis (left) GM of Pearson Fuels with J McCallen Ford Dealer

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distributor. They specialize in the development of alternative fuel infrastructure and distributing alternative fuels. Founded in 1969 G&M is one of California’s largest independently owned retail fuel station companies with sites throughout Southern California including Orange, Los Angeles, Riverside, San Diego and Ventura counties. PETROLWORLD 150415 www.pearsonfuels.com Photo credit: FRED GREAVES

U.S. Oil Acquires Terminals From Marathon Petroleum

often do not come to pass. That is why we thought long and hard about making this announcement because we take great pride in being a group that does what we say we are going to do. “This confidence comes in no small part due to the partner we have with G&M Oil Company. Their story of growing from one gas station to becoming one of California’s largest independently owned retail fuel station owners is the kind of growth story we want to be telling about Pearson Fuels one day. E85 burns much cleaner than gasoline and add to that the fact that it is renewable, domestically produced and currently selling at substantial discounts to gasoline. Literally thousands of E85 compatible flex-fuel vehicles drive by on the freeway beside this station every day and now they have a convenient location to save money and reduce their tailpipe emissions with this inexpensive, clean, renewable fuel,” Lewis said. G&M Oil Company Senior Vice-President Julie Jackson said, “We have sold E85 Flex Fuel at four of our locations for

several years and are happy with the results. The customers seem happy to be saving money and helping the environment. We are confident based on our experience with E85 so far that the public will embrace these new E85 locations and we are excited to continue our leadership in the industry by showing that these sites can be converted quickly and safely so the public can have a new fuel choice throughout our market area. We will be working closely with Pearson Fuels to keep the website updated so consumers can locate an E85 site near them. We are happy to be working with Pearson Fuels on this project!” Partial funding for these projects was made available through the California Energy Commission’s Alternative and Renewable Fuel and Vehicle Technology Program. That funding, matched with G&M’s and Pearson’s, is allowing these sites to be built. Pearson Fuels has grown from one alternative fuel station opened in San Diego in 2003 to become California’s largest independently owned ethanol

U.S. Oil, the petroleum and renewable energy distribution division of U.S. Venture, Inc.,has acquired oil products terminal from Marathon Petroleum Corporation. The terminal is located in Milwaukee area, Wisconsin, the US, and has a installed capacity of 530,000 barrels. The transaction enables U.S. Oil to expand its distribution network to 20 terminals and strengthen its relationship with Marathon and its customers. Mike Koel, vice president of business development for U.S. Oil, said, “With this acquisition we will continue to service our customers through distribution, wholesale, branded and logistics businesses. We look forward to continuing the relationships already in place while expanding our customer’s base.” John S. Swearingen, senior vice president of transportation and logistics for Marathon, said, “U.S. Oil has an excellent reputation in terminal operation and management. We expect the transition to go smoothly.” PETROLWORLD 080415

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

LATIN AMERICA HEADLINE NEWS: Jamaica: Positive Interest in Petcom Fuel Business FEATURED NEWS: Mexico: Oxxo Benefits From Energy Reform Paraguay Struggles to Deregulate Fuel Retail Market Peru: PetroPeru Postpones IPO beyond 2015 World Fuel Services Expands in Latin America

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

Jamaica: Positive Interest in Petcom Fuel Business Puma Energy is the only player not yet with a presence in Jamaica. Since 2010, Puma Energy has been building its fuel distribution business in the Caribbean and Latin America with the purchase of storage and fuel distribution from Caribbean Petroleum Corporation in Puerto Rico and Exxon Mobil throughout Central America. In 2011, it bought Chevron’s assets in Puerto Rico and the Virgin Islands, including 192 retail service stations, an aviation fuel supply business and storage tanks. President of the Jamaica Gasoline Retailers Association, Leonard Green, said Monday that he is aware of more than one local group, which has indicated interest in Petcom. The DBJ itself had indicated in 2014 that it had received eight expressions of interest. Bids are due by June 30. Government’s divestment agent, the Development Bank of Jamaica (DBJ) has started advertising for bids for Petcom. During the prefeasibility phase of the divestment, Cool Petroleum, GB Energy, Puma Energy, Sol Simpson Oil of Barbados, Rubis Energy and Total Oil France along with a number of local consortiums showed interest in the asset.

Petcom is a mid-size operator in a market of 17 marketing companies operating in Jamaica, with 24 service stations and 14 LPG filling plants. This does not represent all the Petcom assets. PETROLWORLD 040515

Mexico: Oxxo Benefits From Energy Reform

ourselves,” Chief Financial Officer Javier Astaburuaga said on a Feb. 26 conference call.

Oxxo Cstores (Femsa) have already operated some services in the 227 stations, which the company said generated 16.2 billion pesos ($1.1 billion) in sales of fuel and related products in 2014.

Gas stations offer very profitable returns on investments, although they can lower operating margins for Femsa Comercio, the company’s convenience store arm, Astaburuaga said. Femsa’s fourth-quarter net income of 7.25 billion pesos beat analysts’ estimates of 5.95 billion pesos.

“With the new regulatory framework resulting from the energy reform in Mexico, we will be able to open franchises

Mexico passed legislation in 2013 to

end state-owned Pemex’s production monopoly, which dated to 1938, and allow foreign companies to develop fields. The government projects that opening up the industry will generate $62.5 billion in investments by 2018. Femsa shares have surged the most since 2012 on Feb. 26 after agreeing to acquire 227 fuel service stations, and it’s seeking to add even more pumps to complement the Oxxo shops whose red-and-white signs are fixtures across the country. The shares are beating the benchmark IPC index in 2015 as well as Alfa SAB, which invest in drilling, and petrochemical supplier Mexichem SAB. PETROLWORLD 100415 Paraguay Struggles to Deregulate Fuel Retail Market An amendment to the controversial degree 2999 of January 2015 will operate from today 1st May. It is understood by PetrolWorld that this will force the hand of the Government in its process to deregulate the fuel distribution and retail markets further and the potential sale of Petropar further down the road. Decree No. 2999 of January 27 introduced by the government of Horacio Cartes imposed restrictions

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

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shares. “In order to have a successful IPO, Petroperú needs to be in attractive conditions for the market,” Head of PetroPeru, Velasquez said in a meeting at the company’s offices in Lima. “Petroperú’s financial situation isn’t at its best right now.” Petroperú, which sold off its production blocks and 102,000b/d La Pampilla refinery in 1996, operates four refineries with total capacity of 80,000b/d and the northern jungle pipeline. The Talara refinery modernization, which is being handled by Spain’s Técnicas Reunidas, aims to boost capacity 50% by 2019. PETROLWORLD 080415 World Fuel Services Expands in Latin America on imports of certain biofuel products maintaining the state oil monopoly on the market. The amendment introduced today will impose “50 % minimum” on such biofuel imports. The next stage of deregulation will be crucial to develop and open the fuels market for the benefit of consumers as well as countries economy. Currently Petropar has signed agreements with Barcos, Copetrol, Esso and Puma to ensure there is enough fuel import stock for the country to operate normally in the short term. Background Despite its enormous hydro-energy resource, fuels remain a major Paraguayan import and the annual petroleum consumption is around 10 million barrels. The state-owned oil company, Petroleos Paraguayos (Petropar), is responsible for all crude oil and petroleum imports and operates a single antiquated refinery, Villa Elisa, near the capital, Asuncion. With a capacity of 7,500 barrels per day, it is used primarily for processing imported crude, producing only one-quarter of domestic petroleum consumption.

oil prices since 2005 have placed strict financial constraints on Petropar and in 2007 severe fuel shortages led to renewed calls for the privatisation of the company.

World Fuel Services announced today that, with the recent acquisition of Colt International, their footprint in the Latin American market has grown in terms of physical offices and personnel.

Biofuels

The company now operates eight offices in six countries, staffed by over 40 employees, with 15 dedicated professionals serving business & general aviation customers in Latin America.

Biofuel production remains limited. There are now six alcohol plants in operation, encouraged by legislation in 2005 requiring minimum bioethanol blend for 85-octane petrol (24%) and for 95-octane petrol (18%). Although about one-third of sugar cane production is now destined for alcohol production, it is still insufficient to meet demand. In response, in 2008 the government introduced a required minimum 1% biodiesel content in domestic vehicle fuel, rising to an eventual 20% maximum. There are currently eight small biodiesel plants in operation but, as in the case of bioethanol, total production is barely sufficient to comply with the initial 1% target. PETROLWORLD 3010415 Source: Local Media & A Nickson IDD Univ Birmingham

Peru: PetroPeru Postpones IPO beyond 2015

Corruption There has long been rampant corruption in the awarding of contracts for sourcing Petropar’s fuel supplies. But the prospects for liberalising its monopoly over the domestic oil market are complicated by the difficulty of ending the government’s control of domestic fuel prices. Increasingly higher international

Petroperú, which was authorized to launch an IPO two years ago, will not go ahead with IPO in 2015. The company, which has had four CEOs since 2011 and had to deal with two leaks at its 200,000b/d northern jungle pipeline in 2014, needs to wait on the right timing for conditions to sell

“The integration of our two organizations [World Fuel Services and Colt International] has brought together some of the most experienced and talented professionals in business aviation, both within the U.S. and abroad. We are very optimistic about the benefits this bolstered team will provide our customers as we better realize our synergies moving forward,” said Michael Szczechowski, World Fuel Services’ Senior Vice President of Business Aviation Sales. To best serve their Latin American customers, World Fuel Services currently maintains offices in Mexico City, Toluca, and Cancún, Mexico; San José, Costa Rica; Bogotá, Colombia; Viña del Mar, Chile; Buenos Aires, Argentina; and São Paulo, Brazil. World Fuel’s Latin American team of local professionals works closely with customers to offer the most comprehensive business & general aviation offerings in the industry. Offering include contract fuel, international & regional trip support, global fuel supply, AVCARD aviation charge card, FlyBuys Rewards Program, the World Fuel Services Network of FBOs, and Air Elite Diamond Service Locations. PETROLWORLD 200315

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Section 3

Product & Supplier > News & Updates

PRODUCT AND SUPPLIER FEATURED NEWS: Turkey: ASIS Automation & Fueling Systems AS Fuel Management & Technology Adverto Outdoor Media Launch Three Models of PumpMedia Product Segment: Digital Media Corporate Indemnity Launch in South East Asia Product Segment: Petrobonds Elaflex ZVF 50 Aviation Nozzle Product Segment: Fueling Components & Equipment Heil Trailer Doubles Stainless Trailer Production Product Segment: Road Tanker Trailers Husky Leads the Way in Meeting More Rigorous UL Safety Standards Product Segment: Fueling Components & Equipment NIS selects Kalibrate Location Intelligence Solution Product Segment: Pricing & Data Technology NUPIGECO Installation at PTT Thailand Product Segment: Piping Systems South Africa: OTI Petrosmart Expands EasyFuel Product Segment: Fleet Technology Tatsuno Strengthens Business in South East Asia Product Segment: Fuel Dispensers Tokheim Obtains International Standard Product Segment: Fuel Dispensers Wayne & Ascentium Capital Offer Equipment Finance Options Product Segment: Fuel Dispensers Wex Inc. Records first-quarter earnings of $22.3 million. Product Segment: Cards Transactions & Payments

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Product & Supplier > News & Updates

Section 3

Turkey: ASIS Automation & Fueling Systems AS Product Segment: Fuel Management & Technology Asis Company in Turkey continues product development with its new Fuel Tank Laser Calibration and Imaging Technology! Developing innovative solutions and products that provide added value to the fuel industry with its R&D operations, Asis continues to expand its product range. Asis has recently expanded its product range with the3D CalibeX - II®, which combines “Laser Calibration and Unique Tank Imaging Adverto Outdoor Media Launch Three Models of PumpMedia Product Segment: Digital Media Convenience & Impulse Expo will see Adverto Outdoor Media launch three models of pumpMedia solutions. Miss Stadelbauer, MD of Adverto, says, “The team are very excited to launch three models of pumpMedia solutions at C&I Expo”. According to Miss Stadelbauer, pumpMedia will allow P&C retailers to create and control their own site specific content with ease, giving them the opportunity to invest in their own digital network channel to drive in-store sales, uplift the consumer experience and to become a point of difference in their local area. Miss Stadelbauer says that there has been significant change within the fuel retail service station forecourt in the past decade, “Since 2006 we have seen the digital landscape evolve from a point where only outdoor media companies invested in the ‘space above the pump’ to the present where fuel retailers are increasingly understanding the value and ease of investing in and supporting their own ‘one to one’ channel to reach their customers”. PETROLWORLD 030315 Corporate Indemnity Launch in South East Asia Product Segment: Petrobonds Corporate Indemnity Pty Ltd has been providing Petroleum Bonds (”PetroBonds”) to the Australian and New Zealand downstream petroleum markets since 1995. It is now launching in South East Asia and has office in Singapore. PetroBonds are a form of surety bonding and provide retail and wholesale petroleum dealers with an alternative form of contractual security to bank guarantees and the like. Their product and services

Technology”. It has been a busy time within the international markets for Asis. Over the last year, new distribution partnerships have been developed in Ghana, Kenya, Nigeria, Saudi Arabia and Spain. PETROLWORLD 0415

www.asis.com.tr

are recognised and accepted by all the leading oil companies operating in Australia and New Zealand. This includes BP, Caltex, Shell, United Petroleum, 7 Eleven and ExxonMobil. We specialise in the downstream petroleum markets and have developed a reputation as a trusted, reputable source of advice and capacity in this niche market. Corporate Indemnity are participating in the PetrolWorld Business Meeting programme as well as the conference and will be making special announcement at the event in Kuala Lumpur. PETROLWORLD 020415

Elaflex ZVF 50 Aviation Nozzle Product Segment: Fueling Components & Equipment The ZVF 50 is a manual (non-automatic) high flow nozzle for overwing and helicopter refuelling for JET and AVGAS fuels. After several years of development and field-testing we have started delivering to customers in March 2015.

• The ZVF 50 is in alignment with the

requirements of the JIG document (Joint Inspection Group) and features several advantages, see ELAFLEX Information 5.13 E.

• For installation and operation please read the manual ZVF 50.

• The nozzle has a modular design and

offers many options. For configuration or your enquiry please use our nozzle configurator.

• A catalogue page with detailed technical information is under preparation.

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www elaflex.de

Heil Trailer Doubles Stainless Trailer Production Product Segment: Road Tanker Trailers Heil Trailer International, Co. has announced recently that it would be doubling production of its stainless line of tank trailers to meet customer demand for its stainless products. Since 2014, Heil Trailers has seen an increasing demand and positive response to its stainless program for its tankers, along with the enduring performance, industry leadership and solutions-driven support Heil Trailer is known by. Due to that success, Heil Trailer will be extending their stainless product line to include food-grade and non-code trailers. “We’ve hit our marks in bringing our stainless product on-line, and, as expected, the marketplace responded to the superior quality, value and support we provide to our other products,” said Randall Swift, Heil Trailer International President. “As promised when we announced the program last year at MATS, our strategic plan for this year includes introducing a wider range of stainless products for food-grade and non-code transporters. With that as our focus, Heil Trailer will soon be ready to serve the stainless market with solutions built just for them, too.” Heil Trailer International, Co. is headquartered in Cleveland, Tennessee, USA. In Asia Pacific, Heil Trailers HQ is based in Bangkok, Thailand. Last September, the company introduced its new logo. The new Heil Trailer logo design features a modern interpretation of the iconic Heil badge, highlighted with contemporary lettering, sharper edges and an overall cleaner design that reflects the company’s focus on precision and innovative trailer design. PETROLWORLD 280415

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Section 3

Product & Supplier > News & Updates

Husky Leads the Way in Meeting More Rigorous UL Safety Standards Product Segment: Fueling Components & Equipment UL Listings Granted; New Standards Affect Nozzles Manufactured Starting April 30, 2015 Husky Corporation fuel nozzle valves for dispensing ethanol blended fuels, diesel, and bio-diesel fuels meet enhanced Underwriters Laboratories (UL) safety standards that take effect April 30, 2015. The stringent new standards have been in the works for many years; primarily to ensure fuel nozzle valves can safely dispense enhanced ethanol and bio-diesel blended fuels. The following Husky nozzle products were recently listed under UL 2586, the standard that now covers Flammable Liquid Hose Nozzle Valves. “Husky is dedicated to continuously improving our fuel dispensing products. We are pleased these nozzle valve products passed the required test procedures to earn listing under the rigorous standards of UL 2586”, said Brad Baker, Husky Corporation Executive Vice President. “UL has been out in front of this issue and we fully support all efforts to enhance fuel dispensing safety standards.” UL 2586 and Ethanol Blends The new UL safety standards anticipate the possibility that the U.S. gasoline supply will feature concentrations of ethanol at rates higher than E 10. For example UL 2586 introduces exposure

NUPIGECO Installation at PTT Thailand

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to more aggressive test fluids, requires that gaskets and seals be make of UL listed rubber materials, and calls for more demanding automatic shut-off nozzle valve endurance test requirements. Certain internal nozzle valve materials, which passed safety standards under the previous applicable standard (UL 842) had to be replaced with more expensive materials to be listed under UL 2586. New Requirement: Pressure Activation or Interlock Device on all UL Listed Nozzles Also taking effect April 30 is a requirement that nozzles with latch-open devices must be pressure-activated or come equipped with an interlock device. This change affects applications where UL listed nozzles are required. The National Fire Protection Association (NFPA) also advocates this feature to prevent the accidental discharge of fuel from nozzles that are inadvertently stored in a latch-open position. Fuel dispensing operations don’t need to replace existing nozzles to meet the new UL standards. However future nozzle purchases will be covered by the UL standard in place when the product was manufactured. Contact Husky Corporation for pricing information at 800-325-3558 or [emailprotected] NIS selects Kalibrate Location Intelligence Solution Product Segment: Pricing & Data Technology Kalibrate, provider of strategy and technology solutions to the global fuel retail industry, is pleased to announce that NIS (Naftna Industrija Srbije) has invested in Kalibrate’s retail network planning and location analysis solution

to optimize the performance of its network of retail outlets in four Southeast European countries. Alexander Malanin, Executive Director of Sales and Distribution Block NIS AD said: “We chose to partner with Kalibrate based on the quality and comprehensiveness of their market data and the ability of their location intelligence tool to help us better understand the drivers of retail performance at each of our outlets. We will be studying how to increase our retail performance in the Balkans.” Bob Stein, President and CEO of Kalibrate commented: “We are delighted to welcome NIS as a valued client. This new partnership adds 3 new countries to Kalibrate’s growing list of market experience, which now exceeds 50 countries. This is further proof of our ability to add value to fuel retail businesses across a very broad range of market conditions.” PETROLWORLD 200315

NUPIGECO Installation at PTT Thailand Product Segment: Piping Systems SMARTFLEX HDPE double wall pipe and fitting system by NUPIGECO has been installed at PTT - Thai National Oil Co. fuel service station. SMARTFLEX is a complete multi-layer piping system for the transport of automotive and aviation fuels, biofuels and hazardous fluids. A system with UL Listing, EN, IP, Kiwa and many more approvals that is in use and approved by all the major international petroleum companies. NUPIGECO is a registered participant at the PetrolWorld Conference and Business Meeting event in Kuala Lumpur from 16th to 18th June 2015 PETROLWORLD 150415

into the vehicle’s fuel inlet, contactless communication is established automatically. Once the vehicle’s payment card details are verified, fuel can be dispensed. South Africa: OTI Petrosmart Expands EasyFuel Product Segment: Fleet Technology Recently OTI PetroSmart introduced an innovative new smart vehicle ‘Moon Tag’ that expands the use of its ‘EasyFuel Plus’ system to the consumer market. OTI Petrosmart will be participating in the forthcoming PetrolWorld Kuala Lumpur event next month. At its introduction, the ‘EasyFuel Plus’ system served commercial fleet owners by automating the fuel payment process, saving time and preventing fraud. This next evolution of the system expands into the private sector so consumers can settle payment automatically without swiping their credit card or paying in a convenience store. Additionally, loyalty points can be awarded automatically per each refueling. For the oil companies, ‘EasyFuel Plus’ is the ultimate loyalty system. Consumers will return to branded stations with the EasyFuel Plus feature for its ease of use and loyalty points. For the consumer market, OTI developed a low-cost vehicle tag that is easily installed on any vehicle. The Moon Tag moniker comes from its ‘one-fits-all’ shape.

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Tatsuno Strengthens Business in South East Asia Product Segment: Fuel Dispensers Tatsuno has strengthened its business in South East Asia with the establishment of a new sales office in Kuala Lumpur, Malaysia. Tatsuno Corporation, headquartered in Tokyo Japan, is one of the world’s key suppliers of fuel equipment solutions to the retail and commercial fuel markets. It has now officially established 100% subsidiary company Tatsuno Engineering & Service Malaysia SDN.BHD. in Kuala Lumpur. Tatsuno is now able to serve clients better and support its distributor network more efficiently. The well-appointed office and facility is located in the Selangor area of Kuala Lumpur. Mr. Tatsuya Oikawa is Managing Director of Tatsuno Engineering & Service Malaysia Sdn Bhd.

Tatsuno Corporation was founded over 104 years ago in Minato Ward, Tokyo. 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 fuel service stations, oil depot terminals, and fuel handling facilities. Tatsuno owns 2,450 patents, utility patents and registered designs. This is made up of 2,010 patents and utility patents and 440 designs. Mr Hidehito Umezawa, Representative and Supervisor at Tatsuno office Kuala Lumpur told PetrolWorld “Kuala Lumpur is ideally located in South East Asia and is well connected from a business perspective. Tatsuno is now in a strong position to react and support our clients and distributors in the key markets of South East Asia.” PETROLWORLD 010515 Tatsuno Office: L3, Jalan ML16, ML16 Industrial Park, 43300 Seri Kembangan, Selangor Darul Ehsan. Malaysia Tel +603 8964 5428 Fax +603 8964 5728

“We are very excited about our new ‘Moon Tag’ solution as it opens up also the huge retail market opportunity for the EasyFuel system”, said Charlotte Hambly-Nuss, managing director for OTI PetroSmart. “We are hitting the ground running with a keen interest from the fuel retail market, since this product is being recognized as a perfect loyalty offering by the oil companies in their ongoing battle to improve services and retain customers. With this solution we can drastically increase our market reach in addition to the commercial market also to the retail market.” OTI’s petroleum payment solutions have already been deployed in 43 countries, more than 1,600 fuel service stations and over 100,000 commercial vehicles. EasyFuel Plus provides Automated Vehicle Identification (AVI) services with its contactless smart read-write tag mounted around the fuel inlet of the vehicle. When a fuel nozzle fitted with the OTI contactless reader is inserted

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Section 3

Product & Supplier > News & Updates standards. It is a significant milestone for our business and it has clearly set us on a path to a cultural change on Health, Safety and Environmental performance.” PETROLWORLD 190515

Tokheim Obtains International Standard Product Segment: Fuel Dispensers Tokheim is delighted to announce that the Dispenser Manufacturing Centre (DMC) in Dundee, Scotland UK has achieved OHSAS 18001 certification for their Health and Safety Management System. The internationally recognised accreditation to the primary manufacturing facility of Tokheim continues to demonstrate the company’s dedication to providing the highest standards of health and safety as part of their common culture. The Occupational Health and Safety Assessment Specification (OHSAS) certificate requires organisations to identify, manage and strictly control health and safety risks in their workplace. The standard is based on the Plan – Do – Check – Act management process and it has been designed to be compatible with ISO 9001 Quality Management System and ISO 14001 Environmental Management System certifications, which DMC is also accredited to. As part of the accreditation process, Tokheim DMC has been required to assess and minimise health and safety hazards and implement an effective management system that will maintain and further promote a safe and healthy working environment. The health and safety records have been of paramount importance to Tokheim’s culture and the certification highlights the company’s commitment to creating a safe, healthy and risk-free workplace. Continuous improvement of the company’s standards have enabled Tokheim to innovate and demonstrate a forward thinking, proactive approach, resulting in a positive impact for their employees, suppliers, partners, customers and the wider business environment they operate in. Ken Scobie, General Manager of the Dispenser Manufacturing Centre in Dundee, UK said: “The accreditation has been a great success for our Dundee plant and it is a recognition of the significant effort and dedication of many of our colleagues to improve the Health & Safety

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Wayne & Ascentium Capital Offer Equipment Finance Options Product Segment: Fuel Dispensers

“Our unique credit platform allows us to meet the strategic business requirements for Wayne Fueling Systems, their distribution channel, jobbers, and the retailers that they service. We anticipate many shared successes,” said Len Baccaro, Senior Vice President of Sales at Ascentium Capital. PETROLWORLD 050515 For more information, contact: Michelle Saab Global Communications Leader Wayne Fueling Systems +1 512 388 8468 [emailprotected]

Wayne has joined forces with Ascentium Capital to offer C-store and fuel retail customer’s innovative equipment finance options for Wayne products, technologies and services, and set-up costs. “As part of our business strategy, we are choosing to work with leaders in the industry to provide our customers the best retail fuel technology,” noted Wayne’s VP of North America, Bill Reichhold. “We are pleased to collaborate with Ascentium Capital on this initiative to give our customers another option to purchase our industry leading products and services.” Fuel retailers in the U.S. are eligible for this financing at competitive rates for products such as the Wayne Ovation™2 fuel dispenser, Wayne Helix™ fuel dispenser, Wayne Fusion™ site automation server, payment upgrades, media programs, services, Wayne Genuine Parts, and more. Through the convenience of same-day financing, and Ascentium Capital’s consultative approach, terms are tailored to the client’s specific cash flow needs including many creative and affordable options. “Ascentium Capital is focused on providing solutions that enhance growth and profitability. It is rewarding to see our organizations come together and develop a finance offering focused on the success of Wayne Fueling Systems,” comments Tom Depping, CEO at Ascentium Capital. “This new financing option allows our customers the opportunity to take advantage of newer equipment and innovative technologies, preparing the site for the future without interrupting cash flow,” stated Wayne’s Director, U.S. Distribution & National Accounts, Dave LaCaille.

Wex Inc. Records first-quarter earnings of $22.3 million. Product Segment: Cards Transactions & Payments Wex Inc has said it had profit of 57 cents per share for Q1 of 2015. The results were better than expected with eight analysts surveyed by Zacks Investment Research was for earnings of $1 per share compared to the $1.10 achieved. The provider of fuel payment processing for fleet vehicles posted revenue of $202.3 million in the period, also beating Street forecasts. Five analysts surveyed by Zacks expected $199.4 million. For the current quarter ending in June, Wex expects its per-share earnings to range from $1.18 to $1.26. The company said it expects revenue in the range of $211 million to $220 million for the fiscal second quarter. Wex expects fullyear earnings in the range of $4.92 to $5.22 per share, with revenue ranging from $867 million to $897 million. Wex shares have increased 14 percent since the beginning of the year. The stock has risen 24 percent in the last 12 months. PETROLWORLD 290415

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Section 4

People on the Move > News & Updates

PEOPLE ON THE MOVE FuelsEurope & Concawe Appoint New Director General John Cooper from BP has been appointed the new Director General of FuelsEurope and Concawe. Chris Beddoes, Director General of FuelsEurope and Concawe, which represent and conduct research for European petroleum refiners, have elected to retire from his role. John Cooper from BP who also has broad experience of the downstream oil industry will replace him this week. John has 27 years of experience in BP and 3 years in the motor industry. Since 2012 he has led BP’s strategy for compliance with renewables and GHG regulation in European transport fuels. John also held commercial, technical and policy leadership roles in BP in aviation fuels, transport energy policy engagement, and fuels technology, in the UK and USA. John has worked closely with BP’s refining leadership throughout his career, on commercial, quality and regulatory matters. He has also represented the UK fuels industry since 2011 with the UK government-led Automotive Council Technology Group. John brings a breadth and depth of understanding of the downstream fuels business, the energy and environmental policy objectives across Europe, and the challenges that arise for the fuels industry from policy and regulations. PETROLWORLD 210415

Austria: OMV Appoint New CEO The Supervisory Board of OMV Aktiengesellschaft has appointed Rainer Seele as the new Chairman of the Executive Board and CEO of OMV. Rainer Seele (54) has accepted the appointment. He will assume the position effective July 1, 2015 for a threeyear period, with an extension option for OMV for further two years. The current Chairman of the Executive Board and CEO Gerhard Roiss will resign from his position on June 30, 2015 as previously announced. Supervisory Board Chairman Rudolf Kemler on the resolution: “Today’s appointment of Rainer Seele is a critical milestone which will ensure stability

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to OMV’s management structure. In terms of qualifications, Rainer Seele is the ideal candidate with a skill set which precisely meets the requirements and many years of experience in international management. He has a well-balanced personality and outstanding personal values. Particularly in light of the currently difficult internal and external circ*mstances, the top priority is ensuring that the company is on track for a stable future”. The Chairman adds, “In this regard I would explicitly like to thank all of the Supervisory Board members for an appointment process characterized by professionalism and integrity over the past months and I applaud this decision in the best interests of the company”. The designated CEO Rainer Seele on his appointment: “OMV is an outstanding company with huge potential, broad expertise and first-class staff. Given the difficult circ*mstances at present, we have to draw on these strengths in order to work together and get the company ready for the new challenges on the markets. I am delighted to take on this responsibility and look forward to moving to Austria with my family”. Rainer Seele has long-term experience in the international oil and gas industry. The chemistry graduate has been at the helm of Wintershall Holding GmbH in Kassel since October 2009. Wintershall is Germany’s largest international crude oil and natural gas producer and a wholly owned subsidiary of the chemical group BASF. After his studies at the University of Göttingen, where he obtained a doctorate in chemistry, Seele joined BASF in Ludwigshafen, initially to conduct chemical research. After working in a number of different functions between 1987 and 1994, Seele was appointed Head of Research Planning and Control at BASF’s Main Laboratory in 1994. In 1996 he became Head of Strategic Planning at Wintershall in Kassel, and in 2000 he transferred to its subsidiary WINGAS, where he became Managing Director with responsibility for sales. As Chairman of WINGAS from 2002, he was above all responsible for alerting the public to the significance of cooperation with Russia for Europe’s

gas supplies. In 2002 Seele was also appointed to the Wintershall Board of Executive Directors with responsibility for Natural Gas Trading. He became Chairman of the Wintershall Board in 2009. Rainer Seele is a German citizen, married with three grown-up children. PETROLWORLD 310315

Papua New Guinea: Puma Energy appoints New Non Executive Directors Puma Energy has announced the appointment of two non-executive directors to its PNG board. Sir Nagora Bogan, KBE, LLB, has over 30 years management and business experience acquired through positions in both the Government and the private sector. He served as the first Chief Collector of Taxes and subsequently as Commissioner General of Internal Revenue Commission and Ambassador to United States of America with concurrent accreditation to Canada and Mexico. He also served as Chairman and trustee of Nambawan Super Ltd for over 10 years until his retirement in 2014. He has extensive international and regional knowledge and experience in a wide range of disciplines such as finance, foreign relations, media, superannuation, banking, taxation, and macro and micro economic matters. Mr. Moses Maladina, CMG, who is currently a senior government advisor on International Trade will also join the Puma Energy PNG board. He was formerly Deputy Prime Minister and MP for Esa’ala, and is now a private business entrepreneur with extensive experience in PNG and the Pacific region. Mr. Maladina is a qualified tropical agriculturalist and lawyer by profession, in which capacity his experience includes practicing in both the National and Supreme Court of PNG. He was also former chief executive officer and managing director of Air Niugini and PNG’s High Commissioner to New Zealand. Mr Maladina’s interest includes writing, and he has published a fiction novel. Robert Jones, Chief Operations Officer for Puma Energy’s Middle East and Asia Pacific business commented, “I am

People on the Move > News & Updates

Section 4

PEOPLE ON THE MOVE delighted that Sir Nagora and Moses have agreed to join our board, and am very much looking forward to working alongside them. They have distinguished track records in the fields of international affairs, politics and business, and will provide invaluable help and advice as we grow our business in PNG and work with our key stakeholders to expedite our investment projects in PNG.” PETROLWORLD 0415

USA: Michael Savignac Appointed VP & GM of OPW Electronic Systems OPW has announced that Michael Savignac has joined OPW as Vice President and General Manager for the OPW Electronic Systems business unit. Savignac succeeds Phil Carlin who was promoted to Managing Director of OPW EMEA. In his new role, Savignac will provide leadership and overall management of the Electronic Systems business unit, which OPW formed in April 2014. Savignac will be based at the OPW facility in Hodgkins, IL, and will report to OPW President David Crouse.

“Mike’s prior success at PDQ makes him the ideal candidate to lead OPW’s Electronic Systems business unit,” said OPW President David Crouse. “With his prior experience and leadership in this marketplace, the division will continue to realize growth while emphasizing product innovation and customer value.” Most recently, Savignac served as President for Florida-based Datamax-O’Neil where he led the business in developing and providing thermal printing solutions to a global marketplace. Prior to his role at Datamax-O’Neil, he worked at PDQ Manufacturing for 13 years, where he held the positions of Executive Vice President and President. Under his leadership, PDQ realized significant growth, exceeding financial goals while focusing on product innovation. In addition, prior to joining PDQ, Savignac held senior executive roles in sales, manufacturing and marketing in several divisions of Illinois Tool Works. “I look forward to working with the teams at OPW and PDQ to continue to leverage the industry-leading technologies that are the cornerstone of both companies,” Savignac said.

Michael Savignac, OPW Savignac holds a Masters of Business Administration from Cardinal Stritch University and a Bachelor of Science degree in Electrical Engineering from the University of Wisconsin at Milwaukee. PETROLWORLD 030415

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IN THE NEXT ISSUE Issue 3 - 2015 (NACS – PEI Issue) (Published September 2015) • • • • •

CBX Brand Design Feature Americas – Whats going on in Mexico Conference topics from PW Kuala Lumpur News From around the World Product & Supplier News

Editorial Deadline: 31st July 2015 Advertising Deadline 31st July 2015 Distribution: September 2015

Issue 4 - 2015 – Special Edition “OUTLOOK FOR 2016” (Published December 2015) This will be a special edition looking ahead to 2016 in general but also by continent. As a result the news will include heading index only. We will have key executives, companies and organisations give their view on the current state of their markets and “Outlook for 2016” Editorial Deadline : 30th October 2015 Advertsing Deadline: 6th November 2015 Distribution: December 2015

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+ EDITOR'S NOTE The next issue will be the NACS PEI issue for Las Vegas. CBX Brand Design will continue our tradition of showcasing the small group of expert companies that influence and develop the fuel and convenience retail brands in our industry. This article will feature some new and exciting developments currently taking place. Both PetrolWorld’s Conference in Kuala Lumpur and IDAC Conference in London had many key presentations and issues discussed. We will cover these in this issue and a number of our future issues in 2016. PetrolWorld will also expand on a number of announcements that are being made in second half of 2015. Details will also be available about the new expanded “Special Edition Outlook for 2016.” David Egan International Editor PETROLWORLD

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