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Ongoing campaign by joint committee of Dubai Government entities regulates oil derivative market
Dubai - A new sting operation, as part of the ongoing joint inspection campaign organised by a committee of various Dubai government entities,has fined several companies and agents involved in illegal trade of diesel in the United Arab Emirates (UAE).
The campaign was announced at the beginning of the year, following a meeting held by the concerned authorities -Emirates Authority for Standardisation & Metrology (ESMA), Dubai Civil Defence, Dubai Department of Economic Development (DED), Dubai Municipality, Roads & Transport Authority (RTA), Dubai Police and Emirates National Oil Company (ENOC). The committee decided to take joint measures regarding the activation of the UAE Federal Cabinet decision no. 37 of 2013 that requires traders and agents working in this sector to fully commit to the UAE's laws and legislations in effect.
Since the creation of the committee, four sting operations have been undertaken resulting in unravelling the illegal activities of several companies involving diesel that does not comply with the industry standards and specifications.Other violations include trading without obtaining necessary permits from concerned authorities in the emirate, or non-abidance with the trading activities prescribed by the trade license.
Through this campaign, Dubai Government entities are taking strong actions against violators,with fines being imposed when any irregularities are found, including non-conformance to the specifications and standards set by ESMA and other associated safety and environmental preservation and storage standards.The sting operations will continue until all companies active in this vital sector adhere to the related laws and regulations.
Saif Al Falasi, ENOC's Group Chief Executive Officer, said: "We thank all government entities and stakeholders for their invaluable support in achieving the campaign goals, which supports the UAE's efforts towards achieving the 'Green Economy for Green Development' initiative launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
"As the first country in the region to approve the standards of diesel, it is imperative that we take strict measures to ensure compliance with the highest levels of safety, quality and commitment to environmental standards. Undoubtedly, close cooperation between ENOC and the different government entities will help regulate the oil derivatives market and limit illicit activities that have negative implications on the country's economy, the environment and public health," Al Falasi added.
Al Falasi also took the opportunity to express his deepest appreciation to the support received from Nader Al Fardan, Director, and Ahmed Al Majid, Marketing &Business Development Manager, both of Industrial Products Marketing; who have taken the lead from ENOC's side to ensure the success of this campaign.
Ahmad Bahrozyan, Chief Executive Officer of Licensing Agency at RTA, said:"The daily vehicle inspection campaigns by RTA constitute a very important part of its efforts towards controlling and issuing violations against illegal activities. The team is present at eight vital locations across Dubai, in addition to the dedicated land plot at Al Hubab area for vehicle impoundment. RTA strives to cooperate with all government entities, each according to its respective jurisdiction, by taking part in similar inspection campaigns.The joint committee hopes to control the irregularities and contraventions in the diesel trading sector, which fully supports the UAE cabinet decision to use the new, low-sulphur diesel."
Alia Al Harmoudi, Director of the Environment Department at Dubai Municipality, pointed out that "the campaign has been successful due to the concerted efforts of the participating entities, including Dubai Municipality, as they bear the responsibility of inspecting and controlling industrial and service facilities within the boundaries of Dubai. Such measures enable the concerned authorities to verify compliance levels with the adopted environmental laws and legislations issued with the aim of protecting the multiple environmental elements- namely, air, water and soil."
"Dubai Municipality's environmental inspection and control team actively contributed to the campaign by checking how much fuel trading facilities satisfy the adopted environmental standards that require all facilities to obtain an environmental permit for fuel storage. All fuel types are classified under the category of hazardous merchandise that has to be managed in line with strict environmental terms and limitations which clearly state that storage must not have any negative effect on the environment, public health and social welfare," added Al Harmoudi, who also noted that "all offenses were fined during the campaign and violators are now being checked to check if they have taken the necessary corrective measures according to a specific timeline."
For his part, Zaid Alqufaidi, Managing Director of ENOC Marketing, said: "Several serious violations were recorded during the joint inspection campaign, and Dubai government entities played a key role in controlling these violations and imposing the due penalties against offenders according to their jurisdictions. This initiative would not have been so successful without the concerted efforts and advanced levels of coordination among all the involved entities. The continuity and persistence of such campaigns have definitely limited the irregularities both in numbers and quality."
In July 2014, ENOC became the region's first company to sell low-sulphur, eco-friendly diesel via its network of commercial and retail stations where employees have made diligent efforts to raise customers' awareness about the importance of using the new diesel type.
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About ENOC
Established in 1993 as a wholly-owned company of the Government of Dubai, ENOC aims to promote the interests of its shareholders through the development of further downstream and upstream activities in the oil & gas sector and beyond, and to encourage the economic diversification of Dubai and the rest of the UAE.
ENOC's vision is to be a leading regional integrated oil & gas group that is highly profitable and socially responsible towards employees, the community and environment. Driving this vision, ENOC is committed to achieving sustainable development and highly profitable growth and serving the growing energy needs of Dubai.
ENOC strives to attract, develop and retain top talent to become the employer of choice, while adopting latest technologies and implementing best practices to achieve world-class performance. ENOC is also focused on meeting and exceeding customer expectations in terms of quality and service, and in maintaining high industry standards with respect to environment, health and safety.
ENOC actively participates in an increasingly broad range of business ventures. Its joint ventures with major international companies allow partners to pool their technology, know-how and expertise along with their resources to further their commercial success.
Since its inception, ENOC has been guided by its philosophy of quality and professional management based on modern business concepts for commercial success and sustainable growth. Today it is poised to engineer a new and challenging period of growth and diversity.
For further information, please contact:
Kelly Home / Sonia Blanco
ASDA'A Burson-Marsteller
+9714 4507600
kelly.home@bm.com /sonia.blanco@bm.com
© Press Release 2015
