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Petroleum players: An overview of the industry’s importers, distributors, retailers, transporters and storage providers in the region

on January 25, 2016 | Leave a comment
Cover Features

By Jackie Hanson

Blue Bay Petroleum Guam and Palau

Management: George Chiu, president

Number of employees: Five in Guam; one in each area of service

What: Blue Bay Petroleum is the exclusive distributor of Exxon Mobil lubricants. The company also provides Mobil’s Signum Oil Analysis testing, in which used oil samples from machinery or heavy equipment are sent off for testing to determine how efficiently and effectively it’s working to keep machines lubricated.

Areas of service: Guam, Saipan, Marshall Islands, Federated States of Micronesia, Palau

Primary customers: Exxon Mobil stations; power plants, including Guam Power Authority; husbanding companies that service military vessels; oil and lube shops; car dealerships; heavy equipment companies; direct sales of outboard motor oil to boat owners

What’s new: “Exxon Mobil is one of the leading oil companies, so they’re always coming up with new innovations to their products. They’re coming up with new packaging which is easier to pour so it won’t spill. In the old days, motor oil always came in a can. Now they come in these easy-to-grip plastic containers with a spout built in.”

Industry predictions for 2016: “You see the gas station prices coming down. The lubricant pricing doesn’t drop as quickly or rise as quickly as the changes in oil prices, like gasoline does, because of the lead time to produce a product, but with the decrease in oil prices, we should all start seeing lower costs.”

What changes have you seen in the industry? “Nowadays, with all the self-service gas stations, I think almost no one checks their oil, which, in part, is because the quality of the oil is so much better now. … You need to change your motor oil, but the changes are less frequent right now with the quality products.”

Blue Bay station in Koror, Palau.

 

ExxonMobil Corp.

Mobil Oil Guam Inc., Mobil Oil Mariana Islands Inc., Mobil Oil Micronesia Inc.Management: Charles E. Ewart, president

Service station/convenience store: Mobil / On the Run

Number of employees: 69

Areas of service: Guam, Northern Mariana Islands and Marshall Islands; supply fuel to Palau and the Federated States of Micronesia

Number of stations: Guam – 20; Saipan – 11; Rota – 2; Tinian – 1; Majuro – 6

 Primary customers: Mobil affiliates sell fuel to more than 100 resale, aviation, marine, hotel, construction, transportation, power generation and government customers. Among the brand’s biggest customers are the Guam Power Authority and the Commonwealth Utilities Corp. in Saipan.

What’s new: In October, Mobil launched its new improved fuel formulations with increased additives, which clean up engines and helps to improve performance and reduce emissions. The company also completed in 2015 upgrades and canopy replacements for 20 Mobil Service Stations, a project started in 2011.

 Outlook for 2016: “We expect that energy demand worldwide will rise by about 35% between 2010 and 2040, driven by population and income growth and an expansion of the global middle class.” Find out more in Mobil’s “The Outlook for Energy – A View to 2040” report at http://corporate.exxonmobil.com/en/energy/energy-outlook.

The airport Mobil station in Tamuning.

 

Isla Petroleum & Energy Holdings LLC (IP&E)

Management: Brian Bamba, managing director

Service station/convenience store: Shell / Foody’s

Number of employees: 231

Areas of service: Guam, Saipan and Palau

 Number of stations: 29 total retail stations: 13 in Guam (eight company-operated, five agent-operated); eight in Saipan (agent-operated); seven in Palau (dealer-owned and operated)

What’s new: IP&E constructed a new service station in Dededo near the Micronesia Mall, which opened Aug. 22, 2014, featuring its new branded convenience store concept, Foody’s. The Shell Barrigada added a Foody’s in September 2015, with the NCS, Yigo and Hagåtña stations next in line. Over the past 18 months, the company has also been upgrading a number of facilities throughout its network, including repairs and improvements to its infrastructure on Saipan following damage from Typhoon Soudelor. Similar work is ongoing in Palau.

 Reflections on 2015: “The typhoon was a major setback for Saipan; however, I am proud of our team who pulled together to put our stations in service within nine hours of the storm passing. Although all of our employees were impacted in their own personal lives, they worked selflessly to assist customers who needed fuel. […] Immediately after the storm, IP&E was the only company providing fuel to hotels, businesses and residents of Saipan, and we are proud, very proud of that and work hard to support the communities in which we operate and live.”

Plans for 2016: “There has been rapid growth in Palau’s tourism economy, and we want to be a part of this expansion while continuing to work with the environmentalists of the community to preserve the beauty of the island.”

(From left) Bill Ada, director of retail sales, operations and marketing, IP&E; and Brian Bamba, managing director IP&E, at the opening of the Dededo Shell service station on Aug. 22, 2014.

 

South Pacific Petroleum Corp.

Management: Joon Hee Hahn, president; Douglas Dean, senior vice president and general manager

Service station/convenience store: 76/ Circle K

Number of employees: 177

Areas of service: Stations in Guam; supplies LPG in Guam and exports to the Northern Mariana Islands, Palau and the Federated States of Micronesia

Number of stations: 11 service stations under the brand 76 and 12 convenience stores under the brand Circle K

Primary customers: SPPC’s prime business focus is retailing and LPG. Commercial and government business forms a secondary and small component of the business.

What’s new: “SPPC continues to endeavor to put together the best convenience store offering on the island. We seek to offer a convenience solution for all tastes, with exemplary customer service to match.”

 Industry predictions for 2016: “My prediction has to be limited to business as usual, with efforts focused on continuous improvement.”

 

Morrico Equipment LLC

Management: Allan R. Morrison, president; Ross B. Morrison, director; Torgun Smith, executive vice president; Rene Molinos, general manager

What: Morrico Equipment LLC sells heavy trucks and fuel trailers to the fuel industry in Micronesia. Morrico is the authorized dealer for Freightliner trucks, Mercedes engines and Beall fuel tanks and trailers. The company also operates an on-site fuel-delivery service on Guam with five diesel tankers operating six days per week.

Areas of service: Head office in Guam, and sells and services equipment throughout Micronesia

Primary customers: All major fuel companies operating in Micronesia

 What’s new: Morrico Equipment LLC has added three new on-site diesel fuel delivery trucks to its Guam fleet.

(From left) Ross B. Morrison, director; Jennifer Cabuhat, truck and forklift sales manager; and Allan R. Morrison, president, all from Morrico Equipment LCC, at the Fuso truck launch on Feb. 20, 2014.

 

Agility Defense & Government Services

Management: John M. Dennett, program manager – Pacific region

Number of employees: 40

What: At four million barrels of storage capacity, Agility operates Guam’s largest fuel storage site. Operated by its subsidiary Tristar Terminals Guam Inc., Agility provides bulk storage of jet, diesel, fuel oil and LPG.

Areas of service: Guam

Major contracts: Defense Logistics Agency – two million barrels of jet fuel storage; Guam Power Authority – 400,000 barrels of fuel oil; IP&E diesel storage, primarily for the Tenjo Vista power station; Port Authority of Guam – F-1 fuel pier performance management contract

What’s new: Tristar Terminals Guam’s property is the home to the endangered Common Marianas Moorhen. In partnership with the U.S. Department of Fish & Wildlife and the U.S. Environmental Protection Agency, Tristar manages the Moorhen’s habitat to enable its population to grow.

Expectations for 2016: “We expect a consistent level of activity throughout the year.”

Agility’s four-million barrel fuel storage site in Agat.

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