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The demanding market conditions of the past 12 months have presented Prax Petroleum with a series of challenges and opportunities. However, the Surrey-based independent oil importer and supplier of automotive and industrial fuels company is “very much on track” to meet its ambitious growth targets.
Sales director, Neil Robertson, explains: “Prax Petroleum has continued to develop its business, making significant gains in contracted and spot sales. The uncertainty surrounding our close neighbour, Coryton refinery, has undoubtedly presented all Thames-based wholesalers with further opportunities.
“Changes to the Renewable Transport Fuels Obligation (RTFO) legislation have presented the market with more challenges and opportunities, and there is still a degree of uncertainty as to how this will affect future strategy. We are very proud to have been the only company in the country to have met the government objective of over 80% of fuel supplied meeting a qualified environmental standard (Year 3 RTFO Report published by the Department of Transport). We have always been mindful of our environmental responsibilities and our efforts in this regard are increasingly appreciated by our customers.”
Upgrades and improvements
Prax has completed several upgrades and improvements to its loading racks during the last 12 months, which have resulted in significantly faster loading times – warmly welcomed by the company’s ex-rack customers, says Neil.
“As a result of customer demand, we are now exploring opportunities to expand our supply coverage and bring the benefits that our customers in the south east have enjoyed to other parts of the country.
“Our strategy remains focused on being able to offer our customers access to imported fuels with the lowest possible associated costs. By keeping overheads low, with no compromise on quality and safety processes, and listening to what our customers want, we are making very good progress towards meeting that objective. We shall, of course, keep Fuel Oils News readers duly apprised of developments!” concludes Neil.
www.praxpetroleum.com
Harvest Energy provides more than 10% of the country’s motorfuel requirements – equivalent to more than 80 million litres every week to its ever growing customer base.
The company is part of the Blue Ocean group of companies, one of Europe’s largest independent suppliers and blenders of motor fuels, with operations in the UK, Holland, Germany, France and the Baltic.
In the UK, the company is a major supplier of diesel, 10 ppm gasoil, and petrols from northern Scotland to Cornwall, making more than 250 deliveries each day. Customers include oil companies, supermarkets, distributors, logistics providers, bus and rail operators, utilities companies, and a wide range of public sector bodies including Royal Mail, MoD and more than 60 local authorities. Harvest is also one of the largest suppliers into the Keyfuels and UK fuels bunker networks.
More retail filling stations
The company is one of Britain’s fastest growing fuel brands, and now supplies more than 100 retail filling stations nationally, most of which are under the distinctive Harvest Energy brand.
Since April, Harvest has taken on the distillate storage facilities at Seal Sands on Teesside, complementing its existing facilities in Grangemouth and West Thurrock, and is actively looking to expand its sales of diesel and 10 ppm gasoil in this area.
“With competitive prices, reliable supply, and excellent service on both a contracted and spot basis, collected or delivered-in, and now with a full vendor managed inventory solution, Harvest Energy is well-placed to expand its portfolio of customers,” says the company.
www.harvestenergy.co.uk
World Fuel Services Corporation is a global leader in fuel logistics, specialising in the marketing, sale and distribution of aviation, marine, and land fuel products and related services. Through its global team of local professionals, it offers single supplier convenience: competitive product pricing, trade credit availability, price risk management, logistical support, fuel quality control and fuel procurement outsourcing.
In the UK, World Fuel Services supplies refined petroleum products, alternative fuels and related services to industrial, commercial and agricultural consumers. World Fuel Services aims to provide an alternative to the traditional fuel suppliers by offering risk management services and alternative pricing options along with the supply of fuel. It supplies both regular commercial grades of fuel and speciality fuels via a network of locations throughout England and Scotland.
Speciality fuels are sold under the Henty brand. These products, which include Furnaceflame Industrial Gasoil, are designed to meet specific industrial applications as competitive alternatives to kerosene, gasoil and fuel oil.
A greater number of supply options
World Fuel Services has expanded its supply base in order to provide its services across a broader geography. Peterhead was added to the list in late 2011. Immingham and Midlands supply options have been added in 2012.
Further supply expansion is under way, with a £10+m investment at itsFalmouthterminal, and a renewed commitment at Simon Storage in North Shields, where the rack loading facilities are being upgraded.
In these times of uncertainty and risk, World Fuel Services aims to provide both physical supply, pricing alternatives and price risk management strategies that others do not offer. Contact the land team on 0207 808 5137.
www.wfscorp.com
A captain’s eye view of the M. T. Lerrix
It was a day of celebration on the waterfront of Hull at the end of May when members of the Rix family, and their colleagues from heating oil and commercial fuels specialists, J.R. Rix & Sons, and sister company, Maritime Bunkering, witnessed the launch of the latest vessel to join the Rix Shipping tanker fleet.
As maritime tradition dictates, a bottle of champagne was smashed against the distinctive green hull of the 1254 ton ship as she was named the M.T. Lerrix by Lucinda Rix, daughter of company chairman, John Rix. The name “Lerrix”, explained John, comes from Lucinda’s initials (Lucinda Emily Rix), coupled with the company convention of having the letters R,I,X, ending the six-letter name of all its ships.
Watching on, as special guests at the ceremony – held at the Dunston Shipyard at Hull’s William Wright Dock – were more than 70 customers, suppliers and employees of the company. Lord Haskins, chairman of the Humber Local Economic Partnership, responded to John Rix’s speech on behalf of the guests, congratulating his company on its continued success in a difficult economic climate.
The new ship – which will be used for bunkering along the east coast of the UK, from Leithto Harwich – has an overall capacity for 1100 tons of oil in four tanks. The 53-metre-long vessel is equipped with two Blackmer rotary vein pumps, each capable of delivering 238 cubic metres of fuel per hour, and one Blackmer rotary vein pump with a capacity of 63m3 per hour.Maritime tradition
New sales coordinator, Pio Ronan
Carbery Plastics has confirmed the appointment of Pio Ronan as sales coordinator. Pio has a strong background in sales and customer service and will be responsible for assisting in the development of Carbery sales in Munster and Connacht.
Pio said: “I look forward to working closely with customers across Munster and Connacht to grow sales of Carbery products in these areas. Carbery is a well regarded brand across Ireland, with a deserved reputation for the development, manufacture and supply of quality products.”
Sales manager Pat Daly said: “Pio will play an important role in the development of our business, as we launch significant new additions in the Carbery range, including our all-new 1000 litres capacity Superslim Bunded Heating Oil Tank.”
Carbery has also confirmed the appointment of Jill Turner to the position of sales office manager. A long-serving employee of Carbery, Jill is already known to customers across Ireland and the UK. In her new role, Jill will be responsible for coordinating the provision of Head Office support to customers in all product sectors and geographic markets.”
nextgen takes place at Stoneleigh Park in Warwickshire from 10-11 October, and together with ebec, the UK’s largest bioenergy show, and microgen, a show serving small-scale (sub-50kW) power producers, has become the UK’s fastest growing event showcasing a full range of emerging renewable energy technologies.
With the trio of events combined at one location, nextgen makes it easier for visitors to retrieve relevant information and to establish business connections. Installers, engineers and renewable energy producers, will mingle alongside managers in the public sector dealing with energy efficiency, farmers and land owners or supervisors managing food processing and waste.
Besides hosting a major international exhibition, nextgen features a multi-stream conference which will take place in six CPD accredited seminar theatres.
For more information and to register for your free place visit www.ebec.co.uk
Former conquerors of Kilimanjaro, the Crown Oil team are now tackling their latest challenge
Burnley based fuel and lubricants distributor Samuel Cooke has been ‘rescued from the administrator’, after the acquisition of key assets by Crown Oil.
Crown Group managing director, Matt Greensmith, explained, “We will continue to trade under the Samuel Cooke name and we can assure existing customers a flawless continuity of service. The Crown and Cooke businesses have many similarities, both being long established, independent and family owned firms that have built sound reputations based on high and consistent levels of service.”
A handful of Cooke’s former employees have already found employment with Crown Oil who are hopeful that there will be more opportunities as the business is consolidated. Staff at Cooke’s had previously been informed that all jobs would be lost as the company went into administration.
Crown Oil general manager, Mark Andrews, said: “We will offer same day or next day emergency deliveries where required with programmed fuel delivery for larger customers.”
Cooke customers will have access to a wider range of advanced low carbon fuels and speciality lubricants. In line with Crown’s environmental commitment all Samuel Cooke’s delivery mileage by road tankers will now be fully carbon offset.http://www.crownoiluk.com/
Frank Carroll, chairman and owner of Samuel Cooke & Co
Burnley based fuel distributor Samuel Cooke & Co went into administration in late July.
The company’s staff were informed on 23 July that the majority of the 86 jobs had been lost as a result, although 12 were retained to assist the administrators.
Some customer dealings are now being investigated by the police, although no further details are currently available.
Administrator Paul Flint said: “The business suffered an unexpected loss in relation to a specific group of customers that impaired asset value and, as a result, placed the business under a significant cash strain.
“The directors reported this position to the police, and it remains under investigation.”
“Regrettably, despite the best attempts of the directors to recover from the situation, they have been unable to find a solvent solution to allow the businesses to continue to trade.”
A statement on the company’s website read: “Paul Flint and Brian Green were appointed joint administrators of Samuel Cooke & Co Limited on July 23 2012. The company has ceased to trade with immediate effect and the assets of the company are being earmarked for sale.”
Essar Oil UK has entered into new arrangements with Barclays Bank plc to cover the supply of crude oil to its Stanlow refinery.
Under the new arrangements, Barclays will hold the inventories of crude oil and petroleum products at Stanlow and will supply crude to the refinery in line with its requirements.
The new arrangements allow Essar Oil UK to repay its existing working capital revolving credit facility, provided by 13 banks. In addition, they allow Essar Oil UK to cut its costs by reducing its crude oil inventory holdings and also permit greater operational flexibility. The customer relationships and product sale processes will remain with Essar Oil UK. These arrangements with Barclays are for three years and take effect immediately.
Volker Schultz, chief executive officer of Essar Oil UK, said: “This transaction with Barclays is an important landmark step for Stanlow. We have built a strong working relationship with Barclays, allowing us to continue delivering a high level of service to our customers, but in a much more efficient manner. The change is fully in line with our strategy to maximise efficiency, to substantially improve margins and to ensure that the refinery can thrive in all market conditions.”
Essar Energy completed the purchase of Stanlow, the UK’s second largest refinery with a capacity of 296,000 barrels per day, from Shell on July 31, 2011.
Workers at the Coryton oil refinery in Essex gathered with their families at Purfleet on 21 and 22 July, to protest against the closure of the refinery and the subsequent loss of more than 800 jobs.
The site is set to be operated as a storage terminal by Greenergy, Shell UK and Vopak, but angry workers believe the government ignored other potential buyers who would have kept the refinery open.
Unite Union national officer, Linda McCulloch, said: “There are some major questions to answer over the sale of Coryton. We know there were serious bidders to keep the refinery going, but have yet to get satisfactory answers as to why they failed. Our fear is that Vopak, Shell and Greenergy were waiting in the wings and that it was a done deal for some time.”
But the three companies are set to invest “a substantial amount in the site to develop it as a state-of-the-art import terminal”, said energy minister Charles Hendry.
He added: “The construction and operation of the terminal should also create significant economic activity in the region over the next two to three years.”
But workers claim that the sale will cost the local economy around £250m.
Cutting the ribbon to declare the new depot open for business
Pace Fuelcare opened a new depot in Ransomes Business Park, Ipswich, on July 24 to ensure a reliable supply of quality fuel for commercial, agricultural and domestic customers across south east Anglia.
Key figures at Pace Fuelcare’s parent company, GB Oils, including Sam Chambers, chairman, Paul Williams, director, Simon Willis, general manager, and Keith Durrant, regional manager, teamed up with Ipswich MP, Ben Gunner, and Mayor of Ipswich, councillor Mary Blake, to cut the ribbon and officially declare the depot open for business.
Over £2 million has been invested in the state-of-the-art depot, which offers a range of modern facilities to its customers, including the latest tank gauging systems and safety features, as well as a comprehensive choice of quality fuel and lubricants.
It will also support the creation of up to 25 jobs in the area, and a further 30 jobs within the finance, marketing, health and safety, supplies and transport divisions of GB Oils, together with a number of sales vacancies.
Simon Willis said: “The opening of the new depot highlights our commitment to support customers and businesses across the region, both in terms of fuel delivery and through business contracts with local suppliers in the immediate area. Following the closure of the Vopak Terminal two years ago, the new depot will be the only fuel terminal servicing south east Anglia, providing customers with a secure supply and dependable delivery of fuel.”
www.pacefuelcare.co.uk
Steven Reeve, driver (l) and Russell Fairchild, operations director of WP Group
WP Group has announced the acquisition of local fuel distributor Upton Oil Company.
Based in Poole with depots across the south including Ringwood and Dorchester, Upton Oil Company specialises in supplying a local, friendly service to heating oil users, the farming community and commercial customers.
David Fairchild, managing director of WP Group, commented: “This acquisition is beneficial for both parties as it brings together a wealth of experience and knowledge from both sides. I have always respected Upton Oil Company’s customer loyalty and hope to further improve the service they receive by utilising WP Group’s extensive infrastructure across the south coast.”
He added, “The business will continue to trade under the long established Upton Oil Company brand and will service the existing customer base, who will not notice any disruption to normal service.”
www.thewp-group.co.uk
The Federation of Petroleum Suppliers (FPS) is introducing a new Fuel Certification scheme to improve the quality of fuel oil and raise quality standards in the industry.
The new initiative will be responsible for the quarterly testing of kerosene, gas oil and diesel storage tanks for particulate, water content and biological contaminants. The tests will allow the FPS to accurately predict trends in fuel quality and help its members improve quality standards across-the-board.
FPS chief executive Mark Askew said: “Those accredited under the scheme will be able to rectify potential fuel problems early, allowing for quick and inexpensive remediation to take place for any issues found during testing. Moreover, the new scheme will provide mitigation against claims from customers for ‘faulty fuel’, which may be caused by the customer’s storage or buying patterns.”
The member price to join the scheme is £1000 per tank per year, but the first 30 member depots to sign up will receive a discount of £200 per tank for the first year. Non-members wishing to join the scheme will be charged £1500 per tank per year.
http://www.fpsonline.co.uk/
OFTEC has launched a new consultancy service, which has already provided independent reports on oil heating systems at a school, police station and several private residences.
Developed in response to customer demand, and designed to meet individual needs, the flexible service offers on-site assessments to ensure compliance with Building Regulations and industry codes of practice. A detailed, illustrated report is provided with recommendations for any work that is required to make the installation compliant.
In some instances, OFTEC is called upon to provide an impartial assessment as part of a dispute; for example a bad installation by a rogue trader, or where a tenant has caused problems themselves.
OFTEC’s technical director Paul Rose said: “The new service is designed to be flexible and can be tailored to suit the particular requirements of the client. We will also be working closely with Local Authority Building Control (LABC) to provide additional expertise when required.”
OFTEC can also provide advice on major system upgrades such as help with preparing tenders, and evaluating submissions.
http://www.oftec.org/
Mabanaft UK managing director Raphael Hüttmann
Mabanaft has announced that Raphael Hüttmann is to take over as UK managing director. The move forms part of a management restructure to provide increased support for development of the company’s UK business interests.
Raphael, currently a board member and a former financial director of Mabanaft, will be taking over from Mark Rolph. He will be relocating to the UK with his family to take up the position.
Going forward the company will continue to focus on traditional trading in physical petroleum products, focusing on the supply chain and biofuels blending.
Raphael said: “I am delighted to be returning to the United Kingdom to lead Mabanaft and look forward to carrying on the excellent work which has been done to date. My remit will be, in spite of the challenging market conditions, to focus on the supply chain and the market opportunities that are continually presenting themselves to us now and in coming years.”
Mark Rolph has taken up a new position as director of public affairs UK for Mabanaft’s parent company, Marquard & Bahls. He said: “It has been an exciting and fulfilling period over the last four years and I could not have managed this without the dedicated support of my team. I am now looking forward to my new role.”
Mark will also continue as chairman of Downstream Fuel Association, where he works to represent the interests of the independent fuel wholesalers and leading retailers.
www.mabanaft.com
Andrew Owens, chairman of Greenergy
Greenergy has announced the purchase of assets at the former Petroplus facility in Teesside from the joint administrators of Petroplus Refining Teesside Ltd, PwC.
The Seal Sands based terminal, previously operated by Petroplus, ceased commercial operations shortly after the company went into administration earlier this year.
Greenergy has been supplying customers in the region from the nearby Vopak terminal, where it has invested in fuel manufacturing, storage and distribution facilities. Andrew Owens, Greenergy chief executive, commented: “The north east is an important hub in our UK fuel infrastructure platform and an area where we have significant sales volume. We will continue to manufacture fuel and supply our customers from the Vopak facility. Once it has been developed, this new site will be integrated into our existing north east system to give additional product and manufacturing capability.
This strategic infrastructure investment follows Greenergy’s recent acquisition of assets at the Coryton refinery in a joint venture with Vopak and Shell.”
The terminal will remain closed for commercial supply over the next few months while development plans for the site are drawn up in cooperation with the relevant authorities.
The plans will include the construction of a new rail head, making Teesside the hub of Greenergy’s rail distribution network. This will allow efficient movement of fuel between Teesside and other UK locations by rail, rather than road or ship.
The existing 20 staff will be retained, and will assist in the development planning.