Emirates General Petroleum Corp (Emarat) recently signed a Memorandum of Understanding (MoU) with Middle East Oil Tankage and Pipelines (MIDTAP) to set up a new company, Emarat-Egypt. The joint venture will take Emarat’s brand of retail gasoline stations for the first time beyond the United Arab Emirates (UAE), setting up 69 service stations throughout Egypt.
The first stage of the operations by Emarat-Egypt will begin in 2003 with completion of the project scheduled for 2007. Expected revenue for the project is estimated at 12 to 19 percent, according to a company press release.
Emarat-Egypt will be backed by a capital investment of 100 million Egyptian Pounds ($21.6 million). Emarat's holds a 48 percent share in the new company, while MIDTAP's share will be 50 percent. MIDOR and the Egypt General Petroleum Company Employees' Fund will own one percent each.
“The decision to expand our scope of operations to include Egypt followed intensive research and a comprehensive market study… We believe that such joint ventures which extends the Emarat brand into other markets will strengthen our overall position and undoubtedly provide us with a unique marketing edge.” Emarat Deputy General Manager Rashid Al-Shamsi told a press conference announcing the joint venture. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
