storage terminal in MoroccoDubai, Nov.14, 2006 (WAM) - Horizon Terminals Limited (HTL), leading subsidiaryof ENOC, and alongside its partners, Independent Petroleum Group of Kuwait(IPG) and Afriquia SMDC of Morocco, signed a contract for a 25-year concessionagreement to build, own, operate and transfer (BOOT) an internationalpetroleum storage terminal at the new Port of Tangiers, in the Kingdomof Morocco.

The signing ceremony was held on 8th November at the Government officesin Rabat, Morocco and attended by King Mohammad's top adviser MezianeBelfkih, Driss Jettou, Prime Minister of Morocco, six other ministersas well as senior delegates from HTL, IPG and Afriquia.

The Port of Tangiers is a new US$ 1.6 billion development aimed at becominga competitive international port, situated to serve Europe, the Americas,North as well as West Africa.

The construction of the new storage terminal will ensure that the consortiumplays a significant role in expanding petroleum-trading activities atthis strategic location, which will serve more than 300 million consumers,through industrial and commercial free zones.

Commenting on the project, Hussain Sultan, ENOC Group Chief Executiveand Board Member said: "This is a monumental win for us. Horizon Terminalhas established a reputation for investing in and managing petroleum storageterminals near busy shipping lanes. Tangiers not only presents such anopportunity, but also shows promise for stable growth in the years ahead."The first phase of the terminal is approximately 300,000m3 of oil storageestimated at a cost of approximately US$ 66 million. Of the total storagevolume, 60 per cent is allocated to bunker products with the remainingvolume being used for clean oil delivery into the domestic market.

Horizon's role in the project is to implement a complete solution, involvingthe initial construction followed by the subsequent operation and deliveryof bunkers in port and offshore. In addition, the joint venture will alsoprovide the means to import and distribute clean oils directly to theNorth Moroccan domestic market which is seen as an important step towardsreducing the cost of energy in North Morocco.

Khalaf Al-Khalaf, IPG's Chairman of the Board of Directors, said: "Theproject is located at the crossing of two major maritime routes, as wellas positioned 15 km from the European Union. This offers a unique opportunityto further expand petroleum trading activities. In the case of IPG, theTangiers investment opens up new marketing opportunities in West Africawhile gaining entry into the bunker market of the Strait of Gibraltar."Morocco's economic development and its fast growing population have resulted in buoyant growth in domestic energy demand. Recent market research indicates that the demand for petroleum products has been growingat 3 per cent per annum since 2000, and this trend is expected to continueuntil 2015.

The petroleum storage terminal will be located within the Port perimeterand will be operated and managed by HTL under its international tradename Horizon.