Dubai, 11 April 05 (WAM) -- In a major development within the UAE'sdownstream petroleum sector, Emirates National Oil Company (ENOC) LLC and its subsidiary ENOC International Sales Limited (EISL), have purchased the 40% shareholding in Emirates Petroleum Products CompanyLLC (EPPCO) of Caltex Trading and Transport Corporation (Caltex).

The buy out makes EPPCO - which operates a 129-strong service stationnetwork throughout Dubai and the Northern Emirates - a wholly-owned subsidiary of ENOC, a Government of Dubai company, a company press releasesaid.

"This transaction is aimed at further streamlining ENOC's operations andbrand equity in petroleum retailing," explained Hussain Sultan, GroupChief Executive and Board Member, ENOC. "However, the Group's long and highly successful relationship with Caltex will still continue acrosssome areas." EISL and Caltex will remain partners in two existing joint ventures: EPPCOProjects Company LLC, which operates EPPCO Aviation and EPPCO Lubricants,and EPPCO International Limited, which owns and operates the UAE's largestrefined petroleum terminalling facilities. In addition, ENOC will continueto provide corporate management, internal audit, finance and administrationand other services to both EPPCO Projects and EPPCO International.

Caltex products will continue to be on sale at the 157-strong EPPCO andENOC service station network throughout Dubai and the Northern Emirates.

"EPPCO will retain the Caltex proprietary 'Star Mart' convenience storetrademarks at its retail outlets for the time being, but within five years,we intend to re-brand them to the ENOC trademark," explained Sultan.

"In the long run, the aim will be to re-image all EPPCO service stationsto the ENOC brand. This means the eventual phasing out of the vibrantred, yellow and white EPPCO brand, which initially raised the benchmarkwithin UAE petroleum retailing, but ENOC is committed to carry on andenhance the service reputation and customer offering for which EPPCO isrecognised."EPPCO was formed as a joint venture between ENOC and Caltex in 1988. EPPCO'score petroleum business is supplemented by a network of 24-hour 'StarMart' and 'Mini Mart' convenience stores, car washes and 'Quick Lube'outlets. The company also operates the highly successful Tasjeel vehicletesting and registration joint venture with Dubai Police.

"This agreement is part of ChevronTexaco's ongoing commitment to concentrateour resources and capital to improve our competitive position in strategicmarkets. We are proud of what we have done together with ENOC to builda strong retail business run by a national workforce. We believe ENOCcan build on this foundation to grow further, and ChevronTexaco can redeployits resources elsewhere," said Shariq Yosufzai, president of ChevronTexacoGlobal Marketing.

"We are pleased to continue our relationship with ENOC and are committedto strengthening our partnership in aviation, lubricants and storage,"said Mike Wirth, president of ChevronTexaco Global Supply and Trading.

This agreement is part of ChevronTexaco's downstream strategy toimprove returns by focusing on areas where it has a competitive supplyposition and strong brand recognition for its three world-class brands- Chevron, Texaco and Caltex. As part of this strategy, Caltex is sellingits interest in fuel and convenience retailing in Dubai and the NorthernEmirates.

Caltex will continue to grow its aviation, lubricants and storage businessesin this region through two existing joint ventures with ENOC - EPPCO ProjectsCo. L.L.C. and EPPCO International Limited.