First phase of terminal estimated to cost over US$ 66 million

Dubai, November 14, 2006: Horizon Terminals Limited (HTL), a leading subsidiary of ENOC, and alongside its partners, Independent Petroleum Group of Kuwait (IPG) and Afriquia SMDC of Morocco, signed a contract for a 25-year concession agreement to build, own, operate and transfer (BOT) an international petroleum storage terminal at the new Port of Tangiers, in the Kingdom of Morocco.

The signing ceremony was held on 8th November at the Government offices in Rabat, Morocco and attended by King Mohammads top adviser Meziane Belfkih, Driss Jettou Prime Minister of Morocco, Hussain Sultan ENOC Group Chief Executive and Board Member, six other ministers as well as senior delegates from ENOC, HTL, IPG and Afriquia.

The Port of Tangiers is a new US$ 1.6 billion development aimed at becoming a 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 consortium plays a significant role in expanding petroleum-trading activities from this strategic location, which can serve more than 300 million consumers, through industrial and commercial free zones.

Commenting on the project, Hussain Sultan, ENOC Group Chief Executive and Board Member said: This is a monumental win for us. Horizon Terminals has established a reputation for investing in and managing petroleum storage terminals near busy shipping lanes. Tangiers not only presents such an opportunity, but also shows promise for stable growth in the years ahead.

The first phase of the terminal is approximately 300,000m3 of oil storage estimated at a cost of approximately US$ 66 million. Of the total storage volume, 60 per cent is allocated to bunker products with the remaining volume being used for clean oil delivery into the domestic market.

Horizons role in the project is to implement a complete solution, involving the initial construction followed by the subsequent operation and delivery of bunkers in port and offshore. In addition, the joint venture will also provide the means to import and distribute clean oils directly to the North Moroccan domestic market which is seen as an important step towards reducing the cost of energy in North Morocco.

Khalaf Al-Khalaf, IPGs Chairman of the Board of Directors, said: The project is located at the crossing of two major maritime routes, as well as positioned 15 km from the European Union. This offers a unique opportunity to further expand petroleum trading activities. In the case of IPG, the Tangiers investment opens up new marketing opportunities in West Africa while gaining entry into the bunker market of the Strait of Gibraltar.

Moroccos 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 growing at 3 per cent per annum since 2000; and this trend is expected to continue until 2015.

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

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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 and gas sector and beyond and to encourage the economic diversification of Dubai and the rest of the UAE.

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.

ENOCs mission is to be the reliable Energy Partner of Choice in each sector in which it operates.

For further information, please contact:
Tania Harasimiuk / Kim Pinto
ASDA'A Public Relations, Exclusive Affiliate of Edelman PR Worldwide in Middle East and North Africa
Dubai,
UAE
Tel: +971-4-3344550
Fax: +971-4-3344556
E-mail: t.harasimiuk@asdaa.com
k.pinto@asdaa.com

Press Release 2006