Aegean News THE QUARTERLY MAGAZINE OF AEGEAN SUMMER 2003

Southeast Europe An Energy Map

RAE Chairman Pantelis Kapros An Interview

Greece's EU Presidency A Recap

ChevronTexaco Greece New Horizons

Plus Aegean Update Bunkering News Bunkering Forum A Strong Aegean Presence

Aegean editorial Core Activities Greece's six-month EU Presidency has concentrat- ed a great deal of attention on Southeast Europe and Greece's role in the political, economic, and business Retail spheres. One of the primary areas that the Presidency ➔ More than 280 gas stations through- focused on was energy. As the entire Balkan region de- out Greece proudly display the AEGEAN velops, energy demands will grow accordingly and a logo, and our network is growing every week. AEGEAN's market share in Greece new set of political and economic relationships will is 4.5%. emerge. An interconnected energy network will ensure that supply is uninterrupted so that consumers' needs are met. The energy sector's major growth, however, Shipping ➔ AEGEAN manages a fleet of 26 tankers, will be the result of private investment and initiative. ranging from 3,500DWT to 100,000 AEGEAN has been following energy trends in the consumer and business DWT, that transfers and delivers oil to market as well as in the all-important shipping sector. We are responding not only our clients throughout the world. All to new dynamics within the market but to new regulations and standards so that our ships meet ISM standards. presence is forward looking and in the best interests of our partners and customers. Our strategies for growth and improved services reflect the opportunities in an en- Bunkering vironment that will be radically different in a few years. ➔ In Piraeus, Gibraltar, Venezuela, and In addition to providing the best products and services to our customers, the United Arab Emirates, AEGEAN is a leader in providing the best bunkering AEGEAN believes that community involvement creates relationships that help all of services available. In Piraeus AEGEAN us develop. For this reason, we have been active in supporting commercial projects, is the market leader in bunkering. cultural events, and NGOs in a variety of ways. AEGEAN will continue to support worthwhile efforts so that our community and the AEGEAN family become better acquainted. Agency Services ➔ Ships from throughout the world rely The tragic loss of Takis Kapsomenakis was a blow to all of us at AEGEAN. Takis on our agency services at Piraeus and will always be in our thoughts and prayers and will always be part of our family. Gibraltar 24/7, from loading and dis- ∆Ô honor his memory and to remember him on a daily basis, we renamed the newly- charging, to spare parts and supplies. acquired, double-hulled D/X ANAHUAC 32000 DWT “CAPTAIN TAKIS.” I wish everyone a safe, happy, and joyful summer season and look forward to re- Lubricants newed cooperation in the autumn. ➔ AEGEAN exclusively stocks and sells ChevronTexaco automotive lubricants throughout its retail network.

DIMITRIS MELISSANIDIS

SUMMER 2003 AEGEAN NEWS 1

contents

Pantelis Kapros, Aegean News explores Aegean's new van Chairman of RAE, energy connections initiative is aimed 8 discusses current 12 throughout the 18 at guaranteeing the energy topics at a Balkans. quality of products time of swift change. and services.

4 AEGEAN UPDATE 22 AGENCY NEWS Summer 2003 6 FLOWS & CURRENTS Nikolaos Firippis with an Agency Update Aegean News is published Trends and News in the oil and energy fields 23 HELLENIC SLOPS quarterly by AEGEAN 8 INTERVIEW Maintaining Environmental Standards MANAGING EDITOR Raymond Matera Pantelis Kapros, Chairman of the Regulating 24 AEGEAN PEOPLE CONTRIBUTING EDITOR Authority for Energy, speaks to Aegean News 25 STATION OF THE MONTH George Fintikakis 11 GIBRALTAR LAYOUT AND PRODUCTION 26 EU NOTEBOOK An Important Location for Aegean Multimedia S.A. Greece's Presidency PRINTING AND BINDING 12 SOUTHEAST EUROPE A. Psillidis & Co. 28 MARINE TRADITIONS ∞n Energy Map OWNER The Ancient Trireme Aegean 16 A WIN-WIN RELATIONSHIP 29 FORUM 51 Akti Miaouli Street An interview with George Kandylis, Managing 185 36 Piraeus, Greece Paul Psomiades, President and CEO of the Aspis Tel: +30 210 429 2530 Director of ChevronTexaco Greek Affiliate Fax: +30 210 429 3074 Group of Companies E-Mail: [email protected] 18 CONTINUED GROWTH IN 30 TRAVEL Internet: www.aegeanoil.gr MARKET SHARE Halkidiki: Forests and Seas Meet Under the Konstantinos Poursanidis on the Domestic Comments and suggestions Mediterranean Sun are welcomed. Market and Aegean's New Policies 31 THE AEGEAN IMAGE Aegean News is free of charge 20 BUNKERING and is available, subject to Products that say "We're different" availability, to any interested per- Gregory Robolakis on Fluctuations in Platts' son or organization. Prices and the importance of Sulphur in Fuels 32 AEGEAN PROFILE

SUMMER 2003 AEGEAN NEWS 3 AEGEAN UPDATE

Aegean Sponsors Panayiotis Andrew Natsios Presentation Kapsomenakis Aegean sponsored the presentation of 1965-2003 Andrew Natsios (photo-L), Adminis- trator of USAID, who spoke at an Panagiotis "Takis" Kapsomenakis died June 2 American-Hellenic Chamber of Com- in a traffic accident in Peristeri. Takis was merce event on May 22 at the Athens Operations Manager at Aegean since 1998. Hilton. USAID (the U.S. Agency for In- Dimitris Melissanidis, Chairman of Aegean, ternational Development) provides eco- said, "Takis was one of the best employees in the nomic, development and humanitarian company and his energy, smile, and cooperative spirit will be sorely missed. assistance around the world in support Everyone at Aegean extends their heartfelt condolences to Takis' family during of the foreign policy goals of the United this very difficult period and all our prayers are with them." Mr. Kapsomenakis States. Mr. Natsios discussed opportuni- leaves a wife, Elena, his parents, and a brother. ties that Greek companies have to par- Aegean Sponsors IPA Event in Alexandroupolis The Hellas Section, Region of Alexandroupolis, of the International Police As- sociation (IPA) hosted a meeting in Alexandroupolis on June 6 and 11 at which the Police Force of Larnaca, Cyprus was inducted into the IPA. Aegean was a sponsor of the events at which the leadership of the Cypriot Police Force and representatives of the Cypriot Ministry of Justice attended. Ioannis Pistolis wel- comed the more than 50 delegates on behalf of Dimitris Melissanidis, Chair- man of Aegean, to Aegean's facilities in Alexandroupolis and was honored by ticipate in the reconstruction of Iraq and the delegates at the formal ceremony. Mr. Pistolis is manager of the Aegean of- spoke about a variety of programs that fice in Alexandroupolis. USAID sponsors in Southeast Europe. The IPA was formed in 1950 as a non-partisan association to promote Dimitris Melissanidis (photo-R), friendship, cooperation, and solidarity among police officers throughout the Chairman of Aegean, met with Mr. world. Greece has been a member since 1966. Michael Pitiakoudis is Presi- Natsios prior to the official presentation, dent of IPA's Alexandroupolis branch and Dimosthenis Marinididis is Secre- and reviewed the current environment tary General. in Iraq and Southeast Europe.

Aegean Marine Petroleum Sponsors Conference Reception

Aegean Marine Petroleum sponsored the opening reception at the 2nd International Shipping and Bunkering Conference held June 3-5 at the Astir Palace Resort in Vouliagmeni. Industry leaders addressed a number of wide-ranging issues that the bunkering and shipping industries face. In shipping, discussions focused on the cruise and freight markets and legal implications of ship and technical and credit topics, and face-to-face ses- port safety codes. Bunkering issues included legal sions with international ship owners, suppliers, case studies in the event of business failures, traders, and brokers.

4 AEGEAN NEWS SUMMER 2003 Holidays 2003 Aegean Supports The Guide Concert Holidays 2003: The Guide is the title of a 64-page Vasillis Lekkas, one of Greece's most guide to summer in Greece and beyond, an insert in admired interpreters of the music of Manos Hatzidakis, was to perform the June 22nd edition of Eleftherotypia on Sunday at the Ancient Agora on July 27. that was sponsored by Aegean. The summer guide of- Aegean is supporting the concert, fers information on Greece's islands, alternative holi- organized under the auspices of the days that include rafting, trekking, and rock climbing, Ministry of Health. and a guide to chartering a yacht for independent sail- ing vacations. The compact booklet makes a handy companion for those who want to explore Greece's many wonderful beaches, mountains, and resorts. Aegean Tops Growth Association of Pontians in Athens For the third consecutive year, Aegean led in the growth of fuel sales in Greece. More than 250 Athenians of Pontian origin a vacuum that has long existed in Athens. According to figures released by the gathered at the Grande Bretagne Hotel June Harry Klin, Achilleas Aslanidis, Takis Ministry of Development, Aegean's 25 to inaugurate the Pontian Association Loukanidis, Elias Atmatzidis, Alkis Pas- sales of gasoline and diesel (automotive of Athens (Euxinos) dedicated to preserv- salidis, Pavlos Kontoyiannidis, Kostas and heating) grew to 355,010 MT in ing the rich Pontian heritage and integrat- Nestoridis, Savvas Kalenteridis, Anonis 2002, up from 282,798 MT in 2001, ing it into the Athenian political and cul- Antoniadis, Polychronos Enepekidis, Sofia an increase of 25.6%. tural landscape. Many Pontians are promi- Iordanidou, and many other Athenians of nent members of Athenian society and are Pontian origin attended the event which leaders in business, the arts, politics, sci- featured Pontian dance and music. ence, athletics, and community affairs. Logging On Dimitris Melissanidis, Chairman of Customers and associates of Aegean Aegean, is President of the Association's may visit the company's web site provisional Executive Committee. During [www.aegeanoil.gr] to learn about the his address to the members, Mr. Melis- company's activities. Bunkering cus- sanidis noted that the Association will play tomers may register online to conduct a vital role to promote Pontian history, business and maintain contact with recognize the significant achievements the bunkering department. that Pontians have made in Greece, and fill

Map of Greece in VIMAgazino

In the June 15th issue of BIMAgazino, the weekly magazine of the Sunday Vima newspaper, Aegean sponsored a full-size wall map of Greece insert that shows Greece's highway, railway, and marine network as well as numerous attractions such as camping areas, historical sites, and nat- ural wonders. The map featured the slogan Aegean: Fuel with low prices and high quality and is part of Aegean's campaign to introduce the Aegean brand as the company's retail network grows. It is expected that by the end of 2003, there will be more than 300 Aegean stations in Greece, reflecting a 20-25% growth rate.

SUMMER 2003 AEGEAN NEWS 5 FLOWS & CURRENTS

Greece Seeks Closer Energy Ties With FYROM Bad Weather Travel Greece hopes to establish closer energy ties with FYROM according to a state- The Ministry of Mercantile Marine stat- ment by Development Minister Akis Tsohatzopoulos who said that better energy ed that there would be no changes to relations would help complete Greece and FYROM's connection to the trans- procedures governing the prohibition of European energy networks for oil, natural gas, and electricity. The minister, travel for passenger liners in bad weather. speaking to reporters in Skopje, said the neighboring countries are also examin- ing ways to promote the environment while developing new energy projects. The following points apply: ñõõõ The priority of the Greek transport industry at sea is safety and quality Athens Declaration Adopted ñõõõ õGreece is the only country in the Euro-Mediterranean Energy Agreement Signed world that prohibits travel for sail- Energy ministers from the EU, including the 10 countries to join in 2004, and ministers boats in bad weather from 10 other Mediterranean countries signed the Athens Declaration for Euro-Mediter- ñõõõ In 2003, the current IT system will ranean Cooperation. The Athens Declaration, according to Development Minister Akis Tso- be updated to apply regionally hatzopoulos, "is a political framework that aims to create an integrated and inter-connect- ñõõõ The prohibition does not apply to car- ed energy market" among the signatory nations. Within the agreement, the nations agree go and Ro-Ro ships over 75 meters to promote common policies in oil, natural gas, and electricity. ñõõõ Should a passenger liner not carry One of the principal aims of the agreement is to establish an attractive environment that will attract private investment. In addition to the 25 EU member states, other countries in- passengers but cargo only, then rules clude Turkey, Algeria, Morocco, Tunisia as well as the Palestinian Authority. Tfor cargo ships apply Oil Tankers Shipbuilding and Repair Zone of Piraeus The Ministry of Merchant Marine announced that it to be Monitored has completed measures to support and modernize The Merchant Marine Ministry the shipyards of Piraeus. A newly created company, Piraeus Shipbuilding and Repair Zone S.A., has been announced plans to monitor tankers formed to advance the interests of shipbuilding and at points where they enter the Aegean repair in the greater Piraeus area. Sea, in order to keep track of all The principal shareholder in Piraeus Shipbuilding movements and to be on the alert for and Repair Zone S.A is the Piraeus Port Authority potential accidents and oil spills. S.A., and will take measures to attract more investors The ministry will install an electronic in the newly-formed company. Piraeus Shipbuilding Vessel Traffic Services (VTS) system and Repair Zone S.A will organize, develop, manage, that is currently in operation in the and commercially promote the interests of shipbuilding and repair enterprises country's main ports. within the zone, which has been officially designated an industrial area. Safety Committee for Boats and Ports A committee for the Observation of Safety Measures for Boats and Ports (EYMAPL) was formed. The committee’s task will be to prepare proposals on preparing and implementing new safety requirements applying to boats and port fa- cilities that are set out in orders by the SOLAS Board of Directors, and to propose all necessary administrative measures that should be taken by MMM. The committee will collaborate with specialized security and project management consultants, who will provide the services required to accomplish the task.

6 AEGEAN NEWS SUMMER 2003 Efthimios Mitropoulos Elected New IMO Secretary-General Ministers Pledge The International Maritime Organization's 40-member Council elected Efthimios Mitropoulos Speedy Transport Links of Greece to be the IMO's new Secretary-General. Mr. Mitropoulos will assume his new duties European Union Ministers have at the end of the year when the incumbent, William O'Neil of Canada, steps down. pledged to re-start a program The IMO is the specialized agency of the United Nations with responsibility for safety of ship- ping and the prevention of maritime pollution by ships. designed to improve transport Mr. Mitropoulos, speaking after his election, said "Although I interpret the Council's vote as a among EU Member States and the vote of confidence in the particular individual, I cannot see the honor that goes with the vote 10 accession countries. Ministers as not reflecting on my family, my family's home town, and my country, all three with deep from five countries—Greece, maritime roots, of which I am very proud." France, Portugal, Italy, and Spain— Mr. Mitropoulos, 64, has been in the maritime industry since 1957 and has been part of the IMO since 1965, when he was first became a member of the Greek delegation. signed a separate accord to develop "supersealanes" for short-haul New Website for the Ministry freight traffic. of Mercantile Marine Under the Greek Presidency 2003, the The new website will compliment the Ministry of Mercantile Marine (MMM) existing MMM website (www.yen.gr), Greek Satellite created a new website to make infor- which will continue to function as the mation on matters pertinent to the central website of the Ministry. Launched shipping industry available to the pub- Hellas Sat, Greece and Cyprus's first lic: www.mmm.gov.gr satellite, was launched May 13 The new website is a dynamic and aboard a Lockheed Martin ATLAS modern information gateway serving the citizen "without boundaries." It will V rocket from Cape Canaveral, make information more accessible Florida. The $178 million project worldwide, using the latest technology will permit complete coverage of to achieve MMM objectives and ad- the 2004 Olympic Games and will dress shipping policy issues. provide a broad array of services for Greece and Cyprus, including IEA Says New Action Needed satellite Internet, two-way to Maintain Safe Energy System broadband, and complete In a communiqué issued following a recent EU ministerial meeting, the IEA telecommunications services to (International Energy Agency) said: "Meeting the long-term challenges of main- Greece's islands and remote regions. taining a secure, efficient, and safe energy system will require near-term action. Five companies are part of the Substantial new investment will be needed to provide secure supply, to reduced Hellas-Sat Consortium: the Hellenic growing energy-related greenhouse gas emissions and to overcome the lack of Telecommunication Organization access to electricity for more than a quarter of the world's population." Speaking after the meeting, Development Minister Akis Tsohatzopoulos said (OTE), the Cypriot company "We find that apart from the IEA, the correct stance of the OPEC members Avacom Net, the Cyprus Bank contributed to an easy and effective handling of the situation during the Iraqi of Development, the Hellenic crisis, adequate supplies and security for consumers. Today we see a steady fall in Aerospace Industry, and Telesat, prices, and the outlook is that with Iraq's resumption of supplies relatively soon, there will be a further downward stabilization of prices." from Canada.

SUMMER 2003 AEGEAN NEWS 7 RAE INTERVIEW New Rules in the Fuel Market Game Facilitating Expansion and Competition

Pantelis Kapros, Chairman of the Regulating Authority for Energy, on the new rules and regulations in the petroleum market.

Law 3054/2002, that applies to the organization of the petrole- um product market in our country, has recently been voted in. What opportunities does it offer to companies in the market? The new law of 2002 gives companies in the market greater opportunities than they had in the past, facilitating expan- sion and allowing them to become more competitive. It also gives them the opportunity to become vertically integrated. That is, they may acquire licenses allowing them to deal in marketing, service stations, and resale. The law especially encourages the merger of small compa- nies within a scaled economic framework so that they may acquire a pan-Hellenic scope; they may acquire storage de- pots in order to have more practical reserves and are there- fore not simply resellers dependent on the refineries. Pantelis Kapros | RAE Chairman How does the Regulation for Reserve Observation, which consti- The new law regarding the petroleum product market brings tutes a core element of the law, facilitate competition? higher competition and lower prices for the consumer. A key factor for the smooth operation of the market in an The Chairman of the Regulating Authority for Energy, professor environment of free competition is that all fuel importers Pantelis Kapros, speaks to Aegean News about the new rules in have access to the storage depots of the refineries. the fuel market. For example, whereas each importer must now Suppose that someone imports petroleum products, who maintain safety reserves of 90 days, all importers now have must observe a 90-day safety reserve for these petroleum unfettered access to storage depots in refineries. products, as is required by the new law, does not have certi- Mr. Kapros points out that, essentially, the previous administra- fied storage spaces. He turns, therefore, to the refineries that tion regime prevented the import of fuel and petroleum prod- have reservoirs. What happened until recently? The re- ucts by companies that did not have their own storage space. fineries allowed only those with whom they had fuel supply "Thus, only the refineries made imports, with the result that contracts to use their depots. In other words, it was neces- the prices that were given to traders were higher than what they could have been," he says. These anomalies are dealt with sary to be a customer of the refinery to observe the safety under the new law. At the same time, vertically integrated com- reserves requirement. The European Court condemned our panies have been given the green light, and a new system for country for this practice, since it damages competition and awarding licenses is being established for each sector—refine- essentially prevents imports by those who do not have their ment, transport, marketing, and retail. own storage space. In practice, only the refineries made im- ports, with the result that prices given to dealers were set

8 AEGEAN NEWS SUMMER 2003 very high. From now on, the refineries will be required to lease storage space to all companies that import fuel, which RAE enables them to observe the requirement for 90-day re- serves. For example, ELPE, which has very large storage spaces, will not be able to deny some smaller player in the The Market Reguator market that imports fuel the lease of their storage space, The Regulating Authority for Energy (RAE) is the independent who is then, of course, required to observe safety reserves. administrative authority that was formed under law 2773/99, In this way, the safety reserves will be increased and conse- whose role is to make proposals to facilitate free and healthy quently the price of fuels—that which interests consumers— competition in the deregulated energy market. will be much lower than. RAEinititates proposals regarding prices, the licensing of private investors, and for the long-term energy strategy of What does the law make provisions for, however, with regards to Greece. its contravention? The tariffs for leasing of storage space will be publicized. Within this framework, RAE has delivered an interesting pro- Moreover, they will be checked. For example, ELPE will not posal for the "Long-term Energy Plan" of the country to the be allowed to assign storage space free of charge to their Minister of Development, AkisTsohatzopoulos, that addresses subsidiary company that deals in the fuel market and at the basic policy aspects that Greece should follow until 2010. Ac- same time lease space to a third party at high prices. Some- cording to this plan, ú10 billion need to be invested over the thing like this would constitute contravention of the law. In next few years to ensure that the country’s energy supplies fact, the new law allows RAE to propose a maximum tariff remain sufficient. at any given moment to the Minister of Development should a case of profiteering be brought to light. RAE "photographs" all the likely dangers that apply to strate- gic planning in the energy market and proposes solutions. It "A key factor for the smooth operation also points out that, provided that the necessary investments are made, by 2010 Greece will have acquired a much more of the market in an environment of free modern and competitive energy system, which will provide competition is that all fuel importers the consumer with clean, sufficient and, most important, af- have access to the storage depots of the fordable energy. refineries." RAE’s task is also to propose changes to law 2773/99, on deregulating the energy market, to make the institutional Do you believe that competition in the Greek petroleum product framework more efficient and welcoming to private investors. market today is functioning correctly? RAE has already made concrete proposals to help "unblock" When we talk about competition, we refer to the profit mar- the investment plans of private investors that amount to ú1.5 gin of companies who import raw material and not to the billion. The construction of thermoelectric generating plants is traders that buy refined oil for resale to service stations. needed, and yet today, two years into a free market, the plans Many times I hear people say "In Greece we have so many for the plants remain neglected. companies distributing oil, the price of petrol should be lower." However, all these traders are essentially resellers of The lack of interest from investors stems from the absence of a the same product after buying it from the same supplier. A suitable institutional framework which will enable them to be key element of the new law is imports. The importation of competitive in the production and sale of electricity. One of the oil by traders will be that which will henceforth regulate the main reasons that private competitors with the national elec- fluctuation of prices in retail. Only then can we speak of the tricity provider, DEH, do not pursue their investment plans, ap- healthy performance of competition in Greece. I believe pears to be that lignite, used to generate 70% of electricity, is that the day that this will happen will soon come. So, com- supplied to DEH free of charge. The cost of natural gas, which petition means that all companies in the fuel market can would be used by private investors, is naturally greater by far, import oil. Not, as it stood in the past, buying from the three and entering into competition with the sole-provider of electric- existing refineries and subsequently quibbling over their in- ity today would not be feasible. dividual profit margins!

SUMMER 2003 AEGEAN NEWS 9 RAE INTERVIEW

How are today’s prices determined? It has to do with the enormous storage spaces of the newly Prices are determined in a logistical way and not on the ba- formed company. If the administration of the new company sis of supply and demand. We begin with the FOB Med in- uses the reservoirs in a way that contravenes the new law ternational prices (the prices that apply to fuel sold in the and denies their lease to smaller companies, RAE will not Eastern Mediterranean) and begin to add a margin of profit hesitate to intervene since something like this would harm for the refinery, transport costs, a margin of profit for the competition. We must be very careful when dealing with distribution and delivery of fuel by companies and service this issue. stations, and we reach a final price. This is not acceptable, especially in the context of a free market. Normally, prices With regard to the organization of petroleum products, the new would be determined on the basis of supply and demand. law also provides for the establishment of special measures Therefore, in order for competition to function properly, the (KEDAK) with increased powers of control. Do we have any results free importation of fuel must be allowed. from these control measures as yet? From the first day of operation, the Control Measures for Do you believe that the ELPE-Petrola agreement will help to create Distribution and Storage of Fuel has inspected, on average, healthier competition? four service stations per day and has found that 10%-15% Absolutely. For a long time, I have been of the opinion that adulterate the product and evade taxes. The tax evasion is three refineries are too many for a country the size of owed to the fact that, for example, certain syndicates "bap- Greece. On the other hand, for many years now Petrola has tize" diesel used for heating, which has a lower tax, as focused on diesel. At the same time, however, it did not do diesel for motors, which is sold with a higher tax, so that as much as it could have, given the opportunity in this sec- they pocket the difference. tor: It remained in the sector of general refinement; it was not modernized, nor were any large investments made. This also happens with shipping fuel that is sold as diesel, Therefore, the merger has been beneficial indeed. Here I and with unleaded fuel that is "baptized" super. In any would like to mention a very sensitive issue because as the case, today tax evasion amounts to 25% to 30% of total Regulating Authority we are concerned and may intervene. turnover in the petroleum product sector.

in applicant countries, because of their need to catch up in the pas- Oil to Remain the Favorite senger and goods transport sectors. More than 70% of the world’s oil reserves are located in the The advantages of oil in terms of calorific value and ease of use member states of OPEC. In 2020 OPEC will cover 50% of the readily explain its rapid breakthrough in the western economies in Unions’ needs with production at 55 million barrels a day, compared the immediate post-war period. Its properties gave rise to road to 32 million barrels a day in 2000. transport 99% dependent on oil. With greater of lesser speed it re- Factors likely to affect price levels include the economic growth placed coal for heating and then for the production rates of importing countries, the progress made in of electricity. curbing demand, the addition of new reserves, and Although oil is being phased out of our the tightening of environmental protection stan- economies to a certain extent, as a result of the dards. Technological developments will pose the oil crisis, it remains an essential economic com- principal threat to OPEC namely; new production ponent in the Member states, primarily in trans- techniques, non-conventional oil, and the develop- port. Transport currently accounts for more that ment of new fuel substitutes. half of oil consumption. While the oil market is a In 1989 the countries of the former Soviet high-tension market, whether this be due to producer-consumer Union were producing more than 11 million barrels a day, and pro- dialogue, prices on the international market, quantities available, duction could double from 7.8 million barrels a day in 2000 to 14 its impact on the environment or accidents at sea with wide media million in 2020. The known reserves in the Caspian Sea basin (25 exposure, it has to be said that it continues to enjoy the favor of billion barrels) are roughly the same as in the North Sea and the the public opinion. USA. Potential reserves could exceed 200 billion barrels, i.e. 25% Consumption in Europe will increase, with a higher growth rate of known reserves in the Middle East.

10 AEGEAN NEWS SUMMER 2003 BUNKERING

Gibraltar An Important Location for Aegean

Sitting at the crossroads of the Atlantic Ocean and the Mediterranean Sea, Southern Europe and North Africa, Gibraltar is one of the busiest ports in the Mediterranean.

he historic rock is also one of the of deeper draft can be accommodated for Aegean Marine Petroleum S.A. busiest bunkering ports in the according to the tide. The port has responded to the de- TMediterranean and Aegean is Bunkering continues to grow at mands of servicing a large number of well-established in Gibraltar, where Gibraltar, where 3.3 million tons of vessels and has also placed itself as a Aegean Bunkering (Gibraltar) Ltd. bunkers were delivered in 2002, com- center for tourism. Among the island's supplied 12% of the market in 2002. pared with 0.84 million tons in 1990. attractions are St. Michaels cave, the It was not until 711 A.D. that Barbary Apes Den, the Moorish Castle, Gibraltar became inhabited, during the "The historic rock is also and the City Under Siege exposition. Mohammedan invasion led by Tariq- one of the busiest bunkering Diving, sailing, and dolphin watching ibn-Zeyed. In 1462, the Spaniards cap- are popular activities on the island, tured the six-square kilometer outpost, ports in the Mediterranean where many visitors spend just a short which it lost to the Anglo-Dutch forces and Aegean is well- time, either passing through or on day in the war of Spanish Succession in trips from Spain or North Africa. 1704. Since then, it has been in British established in Gibraltar, Some of Gibraltar's Port Provisions: hands and today is a British Dependent where Aegean Bunkering ● Red Ensign Category 1 ship register Territory. It is self-governing except for ● Three dry docks up to panamax, matters relating to foreign policy, for (Gibraltar) Ltd. supplied 12% including the largest covered dry which it relies on Great Britain. of the market in 2002." dock in the Mediterranean The strategic island is the welcoming ● Wide range of repair facilities beacon for ships entering the Mediter- Within the port, bunkering is now the ● State-of-the-art cruise facilities ranean from the Atlantic and accom- primary commercial activity and more ● International Airport modates all kinds of vessels, including than 6,000 vessels are served annually. ● Cargo handling facilities cruise liners. Vessels calling for bunkers Aegean Bunkering (Gibraltar) Ltd. ● Off-limits services can be berthed at the Western Arm has three bunker tankers with a total ● Provision of charters where the outer side is 490 meters long capacity of 13,000 tons at the Port of ● Compass adjusting and has a draft up to 9.6 meters. Ships Gibraltar, where the vessels deliver fuel ● Three yacht marinas with 450 berths

SUMMER 2003 AEGEAN NEWS 11 SOUTHEAST EUROPE The Energy Map Southeast Europe

Energy and the energy network that will go through Greece constitute perhaps the greatest challenge for the Greek economy in the next few years.

he growth of the Greek energy hatzopoulos, and the Community also for raising Greece’s diplomatic market will depend to a large Representative, Loyola de Palacio, standing in the region. In addition to Textent on the dynamics of in- emphasized at a recent congress in oil, natural gas is a primary player ternational markets, and on condi- Athens, the essential requirements for that will shape the future energy map tions and developments in Southeast the projects' materialization are polit- of the Balkans and Europe. Europe. ical stability and inter-country col- The turnover of the Greek energy laboration, so that private capital is Pipelines market today is estimated to be attracted. The need for the transportation of gas roughly ú7 billion annually and is ex- Projects with a direct interest for from the East (Caspian Sea, Iran) to pected to increase significantly, Greece include the Burgas-Alexan- the West will shortly lead to the man- mainly because international net- droupolis oil pipeline, as well as the works originating in Central Asia natural gas pipelines from Turkey to (Iran, Turkmenistan, Azerbaijan, and Greece and Italy, from Turkey to Kazakhstan) will go through Turkey Greece and the western Balkans, and and Greece before connecting to the from Turkey to Bulgaria and the larger markets of Western Europe Eastern Balkans, all with a final des- through a nodal intersection in Italy. tination of Europe. Also of interest These networks include new oil and are the electricity networks linking gas pipelines and electric network Greece with Turkey, Yugoslavia, and ufacturing of pipelines. All possible “The turnover of the Greek energy market is estimated to routes go through either Russia or be roughly ú7 billion annually and is expected to increase Turkey. The pipelines through Russia (many of which already exist) do not significantly, mainly because international networks will threaten to decrease supplies from this go through Turkey and Greece.” country, which will continue to provide supplies to the European Union. connections, which will facilitate the Bulgaria, as well as a Cypriot pipeline, Turkey will inevitably be the main conveyance of fuel from the sources of since it transports gas from Egypt to transit country for natural gas from production to Europe. Initial esti- Lebanon and Syria, and terminates in Iran and the Caspian Sea to Europe. mates of the projects bring the cost to Cyprus. The principal route westward for gas roughly ú22 billion. However, as the These developments are important from Turkey is via Greece. Agreements Minister of Development, Akis Tso- not only for the Greek economy but and planning have already been com-

12 AEGEAN NEWS SUMMER 2003 Electricity Network

Oil Network

Natural Gas Network SOUTHEAST EUROPE

pleted, and the manufacturing of a until 2007, especially if the hydroelec- pipeline connecting the networks of tric units are used more rigorously. The New ELPE Turkey and Greece will begin shortly. The deregulated market formally Protagonists in the Balkans Two different routes are being stud- came into effect on February 20, The business marriage of Hellenic Petrole- ied for the transportation of gas via 2001. From this date, the production um and the Latsis group changes a variety Greece to Western Europe. The princi- of electric energy in the established of factors in the refining and marketing of pal route is via Italy, through an un- network of the country was opened to petroleum products. derwater pipeline 180 kilometers long competition, and the roughly 7,500 The new company, which is currently taking (Otranto - Parga), which will connect consumers that are connected to the shape, while absorbing the strategic ambi- to a pipeline on land 330 kilometers network in high and medium capaci- tions of the two groups, will play a more ac- long through Greece. The capacity of ties (discerning customers which rep- tive role in the natural gas market and in electric energy, both in Greece and abroad. the pipeline will be 6 bcm/year and resent 34% of demand), acquired the In the sector of refining, the new compa- the total cost is estimated to be ú1 bil- right to choose their supplier. Until ny—with four refineries (three in Greece lion. The feasibility study of the now, the Ministry of Development, in and one in the Former Yugoslav Republic pipeline is expected to be completed by consultation with RAE, the state reg- of Macedonia) and depots that can store the end of the year. Greece will, in all ulatory agency, has granted seven li- 5.9 million tons of oil—is by definition the probability, function as the transit censes for the construction of large sovereign power in the domestic market, country for natural gas in the immedi- natural gas stations with a total output while its expansion into the Balkan coun- ate future. Investments exceeding ú1 of 2,750 MW, but construction has tries and the Eastern Mediterranean cre- billion are required for this purpose. not begun on any of them, since all ates other dynamics. face the problem of finding finances. The company will also play a leading role in the natural gas market through DEPA, Electricity Five licenses have also been given for Greece's national gas company, in which Over and above the international elec- the importation of 1,343 MW, but ELPE holds 30% of the stock. This market tricity networks that exist in the until now the imports (DEH aside) has already entered the development Balkans, the deregulation in the Greek have amounted to a small part of total stage, and natural gas has begun to enter consumption. the network of the Gas Distribution Com- pany (51% is owned by DEPA), not only Oil supplying businesses but also the house- The prospect of manufacturing the holds of Attica. Burgas-Alexandroupolis pipeline, as Business opportunities in the natural gas sector do not lie only in retail sales: part of a more general plan for the The pipelines for transportation require transportation of oil from the Caspian investments of many billions of euros. Sea to European markets, is important

electricity market will play a decisive role in the configuration of a new map for the region in this sector, but the market also presents difficulties. The primary reason for the difficulties in the development of independent elec- tricity generating stations is that pri- vately owned stations are not viable as long as Greece's PPC (DEH, the na- tional electricity company), charges its current low tariffs. Despite the rapid increase of demand (at 4% annually), it is estimated that the existing DEH sta- tions and those under construction, to- gether with imports, will cover demand

14 AEGEAN NEWS SUMMER 2003 for the oil transport sector. Undoubt- edly, if this pipeline is manufactured, it will raise the geopolitical standing of The Caspian Sea Greece significantly. It is important to and the Role of Greece note that Greece is capable of produc- ing surpluses from refineries, as are It has been estimated that there are potentially 235 billion barrels of oil in the most European countries. The total Caspian Sea region. This wealth is found in capacity of the four Greek refineries countries at considerable distances from (ELPE Aspropyrgos, EKO, Motor Oil, world markets. The distance of these and Petrola) amounts to 22.2 million countries from the markets and their lack of tons annually against a total demand covered roughly 40% of demand (150 infrastructure to facilitate the transportation of 18.4 million tons. Moreover, the bcm). This percentage is expected to of oil and gas have attracted the attention of Hellenic Petroleum-Petrola agreement increase rapidly due to the increase in large oil companies and those with changes the status quo, not only in the demand and the decrease in produc- technological know-how to the region. The Greek oil market but also in that of the tion, and the small reserves of Western transportation of oil to the markets of the West or East will not serve energy interests Balkans and Europe. Europe (5,200 bcm) suffice only for only, however. Wider economic and political 18 years at the current rate of produc- interests will also be served, such as the Natural gas tion (290 bcm annually). building of roads that will provide access to Developments in the natural gas mar- Two suppliers provide 95% of imports the pipelines. In an effort to decrease the ket in Greece and neighboring coun- of natural gas in Europe: Russia influence that Russia has in the region, tries will be determined by the large (58%) and Algeria (37%). To decrease Caspian countries are seeking alternative deficit of natural gas that exists in the dependence on these two countries, routes that will bypass the existing Russian Western Europe and by the need to the European Union encourages di- supplement it using new suppliers, versification in sources. With this in namely Iran and the Caspian Sea mind, the EU has turned to Iran and countries. the countries of the Caspian Sea and Total demand for natural gas in West- Central Asia. Iran, with 16% of the ern Europe amounted to roughly 380 world’s reserves (23,000 bcm), is the billion cubic metres (bcm) in 2000 and second richest country in natural gas this demand has increased by roughly after Russia. All the countries of the 3% annually. It is expected to reach region are eager to deal in exports of 500 bcm by 2005 and to exceed 730 natural gas in an effort to support bcm by 2020. Imports of gas in 2000 their economic growth.

transportation network. A similar bypass Greece’ s Energy Consumption exists serving American interests in the Greece consumes roughly 400,000 barrels of crude oil daily, about 210,000 barrels refined at transportation network in Iran. Greece is Hellenic Pettoleum and about 190,000 from the refineries of Petrola and Motor Oil. Total annu- seeking to be a player in this market and it is al consumption reaches 12.8 million tons, while the strategic reserves of the country amount precisely for this reason that American and to roughly 3.8 million tons. Russian diplomacy has been at work to Greece's increase in GNP and improved standard of living translates into a continuous increase influence Athens. However, will Greece be in oil requirements, a trend set to continue during the next 30 years. For the country to secure able to take on this pivotal role—diplomatic, energy resources until 2010, for economic competitiveness, and for the benefit of consumers, political and economic—in the region? To investments of many billions of euros in the Greek energy market are essential. what extent have Greece's industrial and Greece, more than any other member-state of the EU, depends on energy from oil. The total political leaders fully realized the role that annual consumption of oil for energy in Greece equals 67.95%. The EU average is 49%. Nat- Greece can play in the Balkans, the Eastern ural gas covers a large part of Europe’s energy requirements—24.2% on average—while in Mediterranean, and the Black Sea-Caspian Greece it covers 2% of total annual energy consumption. Sea region, a role centered around energy According to EU legislation, every country should observe reserves of at least 90 days. During resources? These are questions that still the Iraq crisis, Greece had roughly 2.5 millions tons in reserves, enough to last 105-110 days. have not been answered.

SUMMER 2003 AEGEAN NEWS 15 INTERVIEW Aegean and ChevronTexaco A Win-Win Relationship George Kandylis, Managing Director of ChevronTexaco Greek affiliate, speaks to Aegean News about the Texaco lubricants that Aegean offers to its customers.

a little more time is needed for business units in other coun- tries to rationalize their logistics and change their pattern of supply. The future for our export business is very promising.

You have a strong relationship with Aegean. In what ways is this a win-win partnership? It is clearly a win-win business relationship. Texaco secures its presence in a fast-growing retail network throughout Greece that conveys a profound message: "Texaco is still here." The Aegean network, with its superior design and expand- ing presence nationwide, is the right strategic partner to

What have been the greatest advantages to the Texaco Chevron "The Aegean network, with its superior merger for the company in Greece? Because of the previous limited presence of Chevron in the design and expanding presence Greek market, no considerable short-term advantages can be nationwide, is the right strategic partner seen resulting from the Chevron-Texaco merger. However, a ChevronTexaco Greek affiliate, drawing on an extended foun- to achieve this goal." dation of know-how and an expanded business portfolio, can plan its future progress on the basis of a profitable, sustainable, achieve this goal. Apart from that, the alliance offers Texa- and high-tech infrastructure relying on considerable re- co and its customers an additional channel for providing sources. From this standpoint, there is a multitude of medi- Texaco's products and services. This allows our strategy to um- and long-term advantages that we anticipate will further be flexible and customer-friendly. It also generates a rev- enhance our presence in the areas where we operate. enue stream adding to our bottom line results. Aegean, on the other hand, is creating a value-added Many of your products are produced in, and exported from, profile to the end user by utilizing Texaco's brand, which Greece. How do you view Greece as a base for regional operations? has been for decades synonymous with exceptional quality ChevronTexaco Greek affiliate is the ideal supplier of lubri- and superior technology. Through this cooperation Aegean cants to a number of destinations. It is not only the geograph- assures itself access to a universal lubricants environment, ical position of our plant that makes us the supply-point of keeping pace with all new developments in the industry and choice, it is also our vast experience in the export trade, where sharing years of lubricant retail sales experience. we have the flexibility to customize our service to perfectly fit Aegean has in hand a strong competitive advantage over other our customers’ needs. These assets were immediately identi- Greek companies and can face multinational competitors. Our fied as our strong points, and from the moment the merger was collaboration is a powerful marketing tool to use in the fierce- announced every month has been a record month for our ex- ly competitive fuels and lubricants retail business in Greece. It port business. In fact, there is even more export potential since is, of course, a profitable cooperation for Aegean as well.

16 AEGEAN NEWS SUMMER 2003 What superior technologies do Aegean and ChevronTexaco cus- CLEAN SYSTEM ADDITIVE promotion was a success, tomers benefit from and what can we look forward to in the future and we will create more this year. As I said, we have a strong regarding technologies in lubricants? cooperation with Aegean Sales Reps. We exchange thoughts Technologies developed are directed mainly via two channels: and ideas and I'd say we have prospects for a bright future. a) technologies for upgrading lubricants quality and perfor- mance according to OEM requirements and b) technologies What is your "Eco response" in Greece? What programs do you for monitoring lubricants condition and servicing, resulting in have in place to ensure that environmental protection is part of a Technical Consulting Service orientation. EveryTexaco cus- your corporate culture? tomer and Aegean customer will take advantage of both. Texaco Greece, as part of ChevronTexaco Global Lubri- Technology for producing synthetic lubricants is available cants, fully conforms with the Corporate HES (Health, in a wide range of Texaco products from petrol and diesel Environment, Safety) policy. This is implemented through engine oils to synthetic gear oils, in addition to products de- an integrated Management System in compliance with ISO signed for industrial applications. Hydrocracked products 14001 standards and Corporate Operational Excellence are also available, as well as conventional oils with the latest System Requirements. additive technology which creates outstanding performance meeting all OEM guidelines. Our patented technology in "Aegean has in hand a strong competitive coolants should also be mentioned. Havoline XLC is an ex- ample of a product that can last much longer than any oth- advantage over other Greek companies er type of antifreeze product in the market. and can face multinational competitors." Technologies having to do with monitoring and servicing include a series of used-oil analysis and maintenance mon- Apart from operational specifications, separate HES itoring programs such as OilCheck, TexCheck, and Compu- objectives and targets are set at the beginning of each year, tex. These tools not only provide immediate assistance to and are implemented through "environmental or safety pro- the customer regarding lubricant condition but also serve as grams" in which resources and responsibilities become allo- a guide to reach the final goal—cost reduction of lubrica- cated and monitored through the year. This process is a tion. If you add to these the experience and expertise re- prescribed cycle of actions integrally linked to the business quired (technologies are not stand alone tools) by highly planning process. Our Business Unit accomplished several trained professionals, the result is high-quality Technical eco-programs the last year: Consulting which each Aegean customer can enjoy. ● Monitoring groundwater pollution ● Construction of a new wastewater treatment unit for In terms of the future, it is really hard to predict since reaching effluent composition standards of ChevronTexaco, OEM requirements dictate technology upgrading. It ap- which are far more strict than Greek law requires pears, however, that we are moving to lower consumption ● Management and disposal of every waste stream of the of more expensive lubricants supported by much more so- plant, according to the requirements of ChevronTexaco phisticated programs, resulting in an overall cost reduction policy and European Standards in lubrication. ● Launch of a paper recycling scheme for both plant and office paper streams What kinds of incentive programs do you offer station owners and ● Launch of a battery recycling scheme how do you keep the owners abreast of product news? Our team directly cooperates with Aegean Sales Representa- Nowadays, we are in the middle of a project to initiate two tives to provide customers with updates on our products and recycling schemes for our customers, one for used-oils and services. We identify market needs and create promotional one for used-packaging. Every good idea that can lead us programs according to our marketing plan. Of course I can one more step forward is included in our yearly programs. not reveal our plans, but there are promotions designed to This drive for continual environmental improvement is not serve the needs of all intermediaries, the retailer, and the end an ad-hoc action. Texaco Greece wants to lead the world in user. Last March, for example, we successfully launched a safety, environment, health, reliability, and efficiency promotional campaign primarily targeted at retailers that through the use of robust processes. We are committed to provided incentives to the gas station owner to introduce our creating superior value in these fields and we strive to show high quality engine oils to customers. I have to say this that in our everyday business.

SUMMER 2003 AEGEAN NEWS 17 DOMESTIC MARKET Continued Growth in Market Share New Aegean Van Program

Konstantinos Poursanidis, Aegean's Domestic Market Manager, discusses the programs, prospects, and strategies of Aegean as it becomes a leading player in the retail gasoline market.

How is the retail market developing? reason that Greek companies offer the How do you view the future of petroleum During the last few years the competi- same product at a more attractive price. sales in the domestic market? tion in the market has become far more Indicators show there will be a contin- intense. One main reason is that cus- Has the market been growing? ued growth in the market and as cus- tomers are becoming better informed Yes. For instance, during 2002, there tomers see an improvement in service and are demanding higher quality prod- was a growth of 4.3% in domestic sales. and quality by Greek companies, with ucts and service. In addition, customers At the same time, Aegean grew by the understanding that the quality of want service stations that are attractive, 25.6%, the largest increase in sales in the all petrol is essentially the same, will clean, and pleasant. country by any company. And, first show a preference for Greek brands. Another primary characteristic of the quarter results indicate that this trend is The market should grow by just slight- market is that during the last five years continuing into 2003. This is in a market ly less than it did in 2002, let's say multinational companies have been los- where there are 20 companies competing around 3%-3.5%, but I believe that ing market share and domestic compa- for the loyalty of domestic consumers. Aegean will continue to lead the nies have been gaining market share. In growth rate by far, with a rate between 1998 multinationals had 44% of the re- "I believe that Aegean will 20% and 25%. Aegean's network con- tail market whereas today they have tinues to grow and should include well 35.5% and the market share of Greek continue to lead the growth over 300 stations by the end of the companies has increased from 56% to rate by far, with a rate year. Primarily, we are now expanding 64.5%. So we have seen a shift by cus- our network in the south— in Attiki, tomers toward Greek companies for the between 20% and 25%." the Peloponnese, and Western Greece.

Aegean invests a considerable amount of money in its network and stations. Up to now, we have invested roughly ú6 million in our stations and retail network and until the end of 2004 we will invest another ú4 million, for a total of ú10 million. We believe that having high quality stations with clear signs, efficient pumps, and protective canopies shows our customers that we take their needs into account. Customer service is and station quality is at the top of our priority list.

You have recently initiated a new inspection and control program with a mobile inspec- tion van. What is the function of the van?

18 AEGEAN NEWS SUMMER 2003 "The van is a mobile inspection unit that visits The new van initiative is aimed at guar- written certificate is issued. If the fuel is stations in our network and anteeing the quality of our product and found to have qualities outside Aegean's analyzes a station's fuel services. The van is a mobile inspection specifications, it is immediately re- unit operated by a highly qualified placed, the reasons are investigated, and on the spot." technician. Without warning, the van any infractions are dealt with in the visits stations in our network and ana- strictest way. All measures are taken to of services and products. Aegean will lyzes a station's fuel on the spot to de- ensure that the reputation of the com- continue to initiate innovative projects termine if it has been altered in any pany is maintained and that further in- that ensure we maintain the highest way. In this way, Aegean continually fractions are prevented. standards in customer service, quality monitors its fuel to ensure that fuel This program is one that we are very control, and environmental protection. tampered with from any source is not proud of since it strongly supports the sold at Aegean stations. three pillars of Aegean's credo: low If the fuel is found to be as it should, a prices, aesthetic superiority, and quality Konstantinos Poursanidis Domestic Market Manager Retail Market Share: Greek and Foreign Companies Konstantinos Poursanidis heads the domestic market operations at AEGEAN. 70 Mr. Poursanidis studied business man- 64,5 agement and received his university 63,9 degree from the University of Piraeus. 60 60,6 He has been active in the oil sector for 56,1 58,2 25 years. He spent 23 years at Texaco and a year and a half at Shell. Since 50 April 2002 he has been at Aegean. His primary respon- 43,9 sibilities include the 40 41,8 retail station net- 39,4 work, programming 35,5 36,1 fuels from the refineries, and 30 1998 1999 2000 2001 2002 negotiating with the government. GREEK COMPANIES FOREIGN COMPANIES

SUMMER 2003 AEGEAN NEWS 19 BUNKERING Fluctuation in Platt's Prices

From the beginning of 2003, Platt's prices have been highly unstable for fuel and gas oil products in the Mediterranean, as seen in the table.

Platt’ s Prices 2003 (High CIF Med) 400 10/3/03 FUEL GASOIL 350

300

250

200 13/2/03 5/5/03 PRICE (S/TN) 150

13/2/03 100

50

0

2003 2003 /2003 5

2/1/2003 3/7/2003 8/5/2003 5/6/2003 17/7/ 16/1/2003 13/2/2003 13/3/2003 10/4/2003 19/6/ 30/1/2003 27/2/2003 27/3/2003 24/4/2003 22/ DATE

hen prices continually rise, The customer, an integral piece of the like. Likewise, customers do their or fluctuate widely on a dai- the bunkering puzzle, must be care- analysis and take into account not Wly basis, the selling process fully selected and serviced. The sup- only competitive prices but aspects becomes extremely challenging and dy- plier must make well-informed deci- such as quality, service, and estab- namic. It is not easy to forecast the sions about to whom the product is lished business relationships that proper time to buy or sell, for either sold and must assess numerous vari- come into play in the event of diffi- buyer or supplier, and maximize or even ables: credit line, payment terms, and culties in supply. ensure profits in bunkers. Aegean is dedicated to excellence It is vital, therefore, to be continuous- Fuel and is committed to providing the ly informed and up-to-date with mar- 13/02/03 178-185 $/MT highest level of customer service ket events and conditions, to communi- 25/04/03 123-127$/MT through its able and experienced cate with customers for an understand- 19/06/03 142-146$/MT staff. Moreover, Aegean can provide ing of market levels, and to analyze price Diesel support to all its customers who pur- tendencies daily. Risk is a constant ele- 05/02/03 270-275 $/MT chase petroleum products in each ment, but being on top of the market is 10/03/03 370-375 $/MT port it serves. 19/03/03 230-235 $/MT mandatory to minimize risk. by Gregory Robolakis

20 AEGEAN NEWS SUMMER 2003 The Importance of Sulphur in Fuels Choosing the Right Lubricant

Industry experts know that minimizing the number of lubricants used on a vessel simplifies the lives of the people that use and order lubricants.

any main engines are built phuric acids emerge, which are highly that require a specific type corrosive. Gregory Robolakis Mof lubricant and the use of The essential characteristic that Director of Marine Sales that lubricant is vital to the longevity determines the correct lubricant in Gregory Robolakis earned a master’s of the engine. In other words, the such cases is its alkalinity (TBN). This degree in chemical engineering at the City University of New York. His career began quality of the fuel burned is of utmost basically represents the capability of at Shell Hellas in 1988 and in 1994 he importance to how well an engine the lubricant to neutralize acids that took over as Director of Marine Sales of performs and for how long. The type develop during the duration of com- Agip Petroli Spa in the Athens offices. of fuel used—MGO, MDO, of MFO— bustion. Mr. Robolakis joined is a primary criterion, due to the sul- Depending on the type of engine, Aegean as lubricants phur content, which differs depending the type of fuel, and the percentage of manager and fuels contract negotiator and on the category of the fuel. During sulphur, the following categories of is currently Director combustion, SO2 or SO3 are created lubricants should be used. of Marine Sales (Fuels with the presence of water, and sul- The recommendations of the engine and Lubricants).

manufacturer should always be fol- Engine Slow Speed Medium Speed Medium/High Speed High Speed Fuel 3-5%S 3-5%S 0,5-3%S 0,2-1,5%S lowed to determine the final choice of Lubricant M/E: 5-8 10-40 6-30 6-16 the lubricant. TBN CL=70 by Gregory Robolakis

Shipping Modernizing the Aegean Fleet According to statements by Aegean Shipping, Aegean is closely moni- toring the developments in the industry and the European Union re- garding the regulations for the phasing out of single-hull ships. New EU regulations state that all ships that transport heavy oils must be double hulled vessels. Regardless of whether the company agrees with the regulations, they are here to stay and it must be prepared and comply. Aegean Aegean has in the EU. During the last several months the company has acquired two double hulled vessels several months ago which it been rejuvenating its fleet with the purchase of other vessels includ- intends to use in its bunkering operations and it is now looking at ing two OMI tankers from the United States and at the same time has other double hulled vessels to purchase. been selling older vessels. Recently Aegean acquired the Mexican-flagged ANA HUAC, a As Aegean continues to reorganize its fleet it is seeking to expand 30,000 DWT double side vessel that it intends to convert into a on the bigger side with the purchase of two 80,000-100,000 ton double-double hull. This vessel will be used to service the contracts Aframax vessels.

SPRING 2003 AEGEAN NEWS 21 AGENCY Aegean Agency Signs New Contract According to Nick Firippis, Aegean Agency Manager, Agency personnel have more than 25 years of experience and provide its customers with high level services at competitive prices. The group has managed to increase the number of ships it supplies every year. Aegean Agency offers services to large shipping companies, both Greek and foreign, and offers services to ships of every size and type such as VLCC, tankers, cargo vessels, reefer vessels, OBO, and containers, in load- ing and offloading, fueling, repairs, water supplies, delivery and receipt of ships, and payment transactions. Since 2002 it has been a member of the international organization IN- egean Agency has signed a eral shipping services and ship chan- TERTANKO. Mr. Firppis says that contract with the National delling services in Greece. Aegean constantly strives to improve AGas Company to supply ships Aegean Agency supplies services to the quality of services to its customers that deliver natural gas in Greece, fur- ships in all Greek ports as well as to ships and at the same time increase its cus- ther strengthening its position in gen- that harbor in the port of Gibraltar. tomer base.

¡ikolaos Firippis Director of Aegean Agency Nikolaos Firippis has been at Aegean since 1996 and is Director of Aegean Agency. He a graduate of the London School of Foreign Trade where he received his degree in shipping. Mr. Firippis is an avid supporter of Olympiakos Football Club and, in addition to football, enjoys fishing and the cinema.

22 AEGEAN NEWS SUMMER 2003 WASTE TREATMENT Good Treatment at Hellenic Slops

Collecting and treating marine and industrial wastes has become one of the major concerns for the public and private sectors. EU legislation stipulates that waste disposal must be carried out in accordance with community standards and regulations.

ellenic Slops S.A. is Greece's state-of-the-art treatment facilities. Shipyards, Syros Shipyards, Cronos top company that collects, Hazardous waste is treated with the ut- Glassworks, and Coca-Cola and other Htransports, and treats oily most concern for safety of personnel and companies and organizations. waste waters, sewage, and toxic and the environment, and we are fully li- Hellenic Slops is a member of hazardous ship-generated wastes, as censed to deal in such materials. Upon HELMEPA, EUROSHORE, and well as wastes originating from land- delivery, we provide a certificate of law- IAPH. based industrial units. Hellenic Slops, ful handling." based in Piraeus, has installations in Ship generated waste, such as oily ports throughout Greece and is able to tank washings, fuel residues, and oily Panagiotis Stamatogiannis service any region that needs waste bilge waters are transferred to SLOPS Managing Director Panagiotis Stamatogiannis has been management. X, the company's floating treatment Managing Director of Hellenic Slops for According to Managing Director facility. Wastewater and sewage is eight years and coordinates the efforts Panagiotis Stamatogiannis, the compa- treated in the wastewater biological of all employees to make the company ny treats liquid wastes and residues treatment plant. the frontrunner in the protection of (slops) from vessels calling at Piraeus, The SLOPS X has a total storage Greece’s marine Elefsis, Patras, Corfu, Souda Bay, capacity of 52,000m3 and can process environment and to provide services Alexandroupolis, Igoumenitsa and up to 700m3 per hour, including heavy in harbors Kavala, as well as other ports and does viscous liquids. The SLOPS X also has throughout the so in full compliance of EU legislation tank cleaning services on board and a country. as well as according to the standards of fully-equipped oil spill combating ISO 9002 and 14001. station with oil containment booms, Mr. Stamatogiannis says "We operate skimming systems, oil sorbents and a variety of facilities that ensure all absorbents. waste is treated promptly and complete- In addition to servicing vessels at sea, For more Information ly. We have dedicated tankers, barges, Hellenic Slops handles waste at land contact Panagiotis Stamatogiannis at auxiliary vessels, and tank trucks to units for the Public Power Corporation Hellenic Slops: [email protected]/ www.slops.gr collect residues that are transferred to (DEH), Skaramangas Shipyards, Elefsis

SUMMER 2003 AEGEAN NEWS 23 AEGEAN PEOPLE Making Dreams Come True Determined to be a Doctor

ne of the best sayings we have, ical studies, regardless of any diffi- "It's never too late," is often at culties. Since Patras is not very conve- Othe heart of success. For nient for me, I have applied for a Roula Kakkou, a secretary at Aegean transfer to medical school in Athens since 1995, time appears not an ob- and hope to begin my studies as soon stacle, but rather an ally. After the na- as possible." Roula would like to study tive of Nikea completed her studies at pediatrics and is undeterred by the the Technical Institute of Athens four years of study ahead of her. " I (TEI) with a major in Public Health, look forward to attending medical she took the rigorous exams for med- school and am very appreciative of the ical school. Roula, who is married, had support I have received from Aegean. given birth to her first child just The company has allowed me to be months before taking the exams. Nev- flexible with my work hours so that I ertheless, she passed the entrance ex- could attend classes and prepare for ams and was accepted to the medical the exams." school at the University of Patras. For Roula, making time an ally has "I always wanted to be a doctor, and been the best strategy for success and am determined to complete my med- one that would serve all of us well. A Studied Approach fstratios Panagiotokopoulos, pleasant schedule for the 23-year old 3rd in his class) and has received nu- who has been working at Athens native who would eventually merous scholarships, including one for EAegean's accounting depart- like to earn a Ph.D. degree. a semester at the University of ment since 2001, in June completed his "Aegean is helping finance a part of Osuabrueck in Germany. In addition first year of an MBA program at the my studies and that helps a lot. It also to being a native speaker of Italian University of Piraeus, where he is con- demonstrates the positive attitude the and Greek, Efstratios is fluent in centrating in finance and accounting. company has toward its young employ- English and German. He hopes to Eight hours of work followed by four ees and toward education." pursue an MSc in Decision Science at the Economic University of Athens "The supportive and positive environment at Aegean has and hopes his training will lead to a successful career at Aegean. helped me develop personally and professionally. I am "The supportive and positive envi- able to initiate projects and my ideas are received openly, ronment at Aegean has helped me de- something that has been a valuable experience. Aegean is velop personally and professionally. I am able to initiate projects and my ideas helping finance a part of my studies and that helps a lot." are received openly, something that has been a valuable experience." hours of classes has been the regular Efstratios also has a positive atti- In his "spare" time, Efstratios enjoys schedule of Efstratios throughout the tude toward education. He earned his basketball, baseball, swimming, and past year, a demanding but not un- BA in economics in 2001 (graduating traveling.

24 AEGEAN NEWS SUMMER 2003 STATION OF THE MONTH

When Dimitris Tragoumanidis began his gas station outside Elefsina in 1990, it was a small operation with a few employees. Today, his Aegean station is one of the busiest in Greece and Mr. Tragoumanidis sees room for more growth. The "30th Kilometer" Aegean 24 hours a day, seven days a week

verlooking the bay of Elefsina in team of young men that quickly re- "Our relationship with Aegean is excel- Loutro Pyrgos at the 30th kilo- spond to the needs of each customer, lent. It is based on friendship, but the Ometer of the Athens-Corinth 24-hours a day, seven days a week, most important characteristic of our National Highway, Mr. Tragoumanidis's 365 days a year. Drivers can have an business dealings is the mutual respect Aegean "operation" today employs more oil change or a car wash and relax in that we have for each other. I see that Ja- than 30 staff—14 at the gas station, 12 the large cafeteria/snack bar with hot cob Melissanidis and the entire team at in the mini market and cafeteria, and or cold refreshments including sand- Aegean look after our needs and I sup- four in the accounting office. Sitting on wiches and toasts. The mini market port the company every way that I can." 15 stremmata (5 acres), the "30th Kilo- meter" Aegean, as it is called, is a hive of "The station offers multiple pumps for full and efficient activity, with cars, trucks, and motorcy- service and has a team of young men that quickly respond cles constantly pulling up to the pumps as they leave greater Athens for trips to to the needs of each customer, 24 hours a day, seven days Patras, Sparta, Tripoli, Nafplio, Kalama- a week, 365 days a year." ta and all destinations in the Pelopon- nese and western Greece. "On Fridays carries a wide range of necessities and Mr. Tragoumanidis has built a top- and Saturdays, it is amazing to see the small gift items, as well as toys for tots. of-the-line business enterprise but is number of customers who stop at the Mr. Tragoumanidis wife is an active eager to do more. In September, he will station. We have thousands and thou- part of the station management and his renovate the entire station so that his sands of customers each week. In fact, daughter Toula is becoming general customers will enjoy the best possible our station is the largest in Greece in manager of all operations. "The busi- service of any gas station in Greece. terms of volume of gas pumped," says ness is our life and we all do our best Business is always on the increase, and Mr. Tragoumanidis, who has been in the to make it the best. All of us working in the future he may build a hotel on the business for 14 years. together is a great joy and source of land above the station, offering a unique The station offers multiple pumps satisfaction." combination of services at the "30th for full and efficient service and has a According to Mr. Tragoumanidis, Kilometer" Aegean.

SUMMER 2003 AEGEAN NEWS 25 EU PRESIDENCY Policies The Greek Presidency

The proposal for imposing common taxation in energy was just one of the economic policy issues that the Greek presidency was asked to deal with.

Taxation on Savings collect 75% of the income from this ¡ikos Christodoulakis | Minister of Economy Putting into effect the community di- tax. The objective of this directive is rective on charging tax on deposits to crack down on tax evasion and to fter years of discussions, a so- that have "emmigrated" to tax havens increase competitiveness in the money lution was found that estab- in Europe is estimated to yield poten- markets of the Union. The solution Alishes a tax framework in tially ú300 million of profit annually was reached after tough negotiations which minimum rates of tax apply on to the Greek economy. The directive between the Greek presidency and fuel. The objective of this framework is anticipates that all member-states will Luxembourg and Austria, who reacted to save energy and to protect the envi- automatically exchange information, strongly to such measures, while simi- ronment without creating excessive tax which will be gathered by the banking lar reactions came from countries burdens that will affect the competi- institutions where deposits are made, outside the EU, including Switzerland. tiveness of the industry. and transmitted to the relevant au- The directive will apply from The framework was one of the pri- thorities of member states. Owing to 1/1/2005, and Greece and Portugal mary concerns of the economic policy have exercised the right to a transitional promoted by the Ministry of Finance period of 8 years. and Economy in the six-month period of the Greek presidency, and was pre- The Eurogroup & Budget Policies sented by Nikos Christodoulakis, After negotiations lasting several Minister of Economy. months, an agreement was reached re- Based on the proposed compro- garding the need to observe the Stabil- mise, which the Greek presidency put ity Pact, while at the same time flexi- forward and was adopted by the re- bility (circularly adapted deficit, de- maining member countries, the impo- pending on a county's economic situa- sition of fuel tax will increase gradu- tion) was promoted. The agreement ally over the next few years, so that the anticipates that in periods of an eco- increase in fuel prices does not create nomic boom, it is the responsibility of problems in production or consump- member-states to create margins in tion. Greece has in fact ensured a banking confidentiality, Austria, Bel- their budget policy and to follow a transitional period until 2010 in order gium, Luxembourg, and third-world more relaxed budgetary policy in peri- to adapt to the new plan. countries will put the directive of re- ods of a slow-down, without, however, Other issues that the Ministry of taining taxes (up to 35%) into effect exceeding a deficit of 3%. The need for Finance dealt with in the six-month during the transitional period. The budgetary discipline becomes even period of the Greek presidency were: investor’s country of residence will more crucial given the fact that most

26 AEGEAN NEWS SUMMER 2003 "A small country proved that it is able to guide the EU. I congratulate you because you proved that a six-month rotation enriches [the EU] and is, in fact, a creative element for the Union." Johannes Voggenhuber, MP, Germany

states of the European Union will face of transactions is also improved. "taliro" (five cents) on fuel was the problem of increased social security An important parameter con- charged in order to contribute to an expenses due to an ageing population. tributing to unification was the grad- environmental fund—both members ual application, since 1999, of the of parliament and major social insti- Governing Lines Action Plan for Financial Services. tutions (such as the National Workers in Economic Policy According to recent studies of the Union of Greece) expressed fears of The 15 member states decided to give European Committee, the procure- the consequences that this measure weight to policies focusing on a more ment of financial services is expected might have on the economy. "A mea- competitive, dynamic, and economic to yield significant profits in all sec- sure that can have a very positive im- information base, to boost competition tors of economic activity. In all coun- pact on the environment should not in the markets of goods and services. tries, calculations forecast an increase damage the economy or society," they The states also decided to emphasize of 1.1% in GNP, of 0.5% in employ- stressed. Minister Christodoulakis has reforms in the job market and to review ment, of 6% in investments, and of also stated in the past: "Whatever the policies of the social service systems. 0.8% in private consumption. Busi- changes, they must be supported by ness profits will be generated as much corresponding economic, social and Regional Policy from the reduction of transaction environmental parameters." The planning and the framework of costs as from financial costs, and also Experience has shown that the the Fourth Community Support pro- from the increase in the variety of fi- green tax in some countries was in- gram were also initiated in the six- nancial products available. troduced with greater success (as in month period of the Greek presidency. the Scandinavian countries and in Greece is expected to collect a signifi- The History of "Green" Tax Holland), whereas in others there were cant part of its funds from this new Discussions on charging a "green tax" significant consequences. In Ger- package and the financing will begin in member-states of the EU go back many, for example, the imposition of in 2007-2008. many years. Until today, each country the green tax in 1999 led to fuel price followed its own policy on the issue. In doubling, which significantly affected Financial Markets fact, 11 European countries have people with lower incomes. Steps were taken for the faster unifica- been charging tax to industries that Among the countries that have im- tion of European Stock markets. The pollute the environment, in addition posed a fuel tax on motorists and tax- economic and political uncertainty of to a fuel tax, while in industries that es on energy consumption from the last few months highlighted more used ‘clean’ forms of energy, employer sources that affect the environment than ever the need for a much faster contributions and other taxes were are Norway, Finland, Sweden, Den- pace in the unification of European decreased accordingly. mark, Spain, United Kingdom, Ger- capital markets, so that transparency In Greece—where in 1992 the many, and Italy.

SUMMER 2003 AEGEAN NEWS 27 MARITIME TRADITIONS

The Ancient Trireme Nimble Projectile of the Ancient Greek Navy

In the 5th century BC the Greek navy was one of the most powerful in the Mediterranean, and the Athenian trireme was one of the most dangerous and effective weapons of its time.

uilt for speed and mobility, the Putting oarsmen over each other was used in battle, the trireme was used as trireme was 37 meters long an ingenious idea. This design feature a cargo ship. For reasons of economy, Bwith an overall beam of 5.5 raises the center of gravity that threat- the number of oarsmen was kept to a meters, had 170 oarsmen in 3 files on ens the stability of a very low-draugh- minimum, providing more space for each side (top file 31; middle and bot- ted ship, while at the same time keep- the cargo. When preparing for battle, tom 27; one man per oar), and was ing the surface area inside the water at all unnecessary weight—including the able to cover 184 nautical miles at a minimum. In battle, the trireme was sail—was left ashore. about 7.5 knots. In 480 BC, after the Persian army The vessel had a large square sail "In battle, the trireme was had conquered most of Greece and that allowed it to cruise at an estimat- but a stripped-down water- the Greek navy anchored in the Bay of ed maximum of 14 knots in favorable Salamis was left to determine the fate weather conditions. Greece had many borne projectile, propelled of the nation. In the famous battle of natural harbors, and some were used by human muscle power." Salamis, 1,200 Persian galleys were exclusively for triremes. sent to deal with 450 Greek triremes. The resources required to build and but a stripped-down water-borne During the fierce engagement, more maintain a fleet were tremendous. Al- projectile, propelled by human muscle than 200 Persian ships were lost and though it would not have fared very power. The most common engagement many more captured and the Persians well in open seas because of its design tactic by both sides was to get very suffered a terrible defeat. (the bottom row of oars were only 18 close to the enemy ship and either ram After the victory of Salamis, inches above the waterline), it was very it or brush along side it and snap all the Athens led the Delian League, an al- fast and maneuverable for short, close- oars off, leaving it disabled and at the liance of Greek states created to keep in battles. The crew consisted of 203 mercy of the attacking ship. the Persians out of the Aegean. The men: 170 oarsmen, 14 spearmen, 4 The trireme's design made it a for- Delian League was later to become archers, and 25 officers and sailors. midable ramming device. When not the mighty Athenian Empire.

28 AEGEAN NEWS ∞¡√π•∏ 2003 FORUM Financial Services Modern and Made-to-Order An interview with Paul Psomiades, President and CEO of the Aspis Group of Companies

Changes in the banking, finance, and insurance industry have What sorts of products exist on the market today that small- and been dramatic in the previous three years. What are the most im- medium-size businesspeople can take advantage of—products portant trends to emerge in these industries that have an effect that were not available a few years ago? on businesspeople? As I mentioned, banks have become more in tune to their I would not call the changes in these industries dramatic. In clients' environment, anticipating their needs and offering the last few years, our country, as a member of a united Eu- tailor-made products. rope, has taken significant steps in the finance industry, inte- Investment services, previously unknown, appeared after grating into the second largest economy in the world. The eu- the introduction of the euro. Bankassurance products are also ro has become the chosen currency of exchange after the dol- considered a novelty. lar by third world countries, countries that for the last 30 In the loan sector, small, medium, and large enterprises years kept all their reserves in dollars. can chose between loans with fixed or variable repayment pe- In the banking industry, competition has sparked improve- riods and interest rates, depending on financial needs and ment in all services, from those for large enterprises down to cash flows. Interest rates are based either on the institution’s savings accounts and loans. I believe the Greek banking client own basic interest rate on borrowings, or on the interest rate has been deprived of neither products nor services, compared of the European central bank, plus a margin depending on with other European citizens. the credit rating of each client. September 11th had very serious repercussions in the insur- ance industry on a global level and the consequences are evi- How effective has the deregulation process been in the financial dent in the sector's financial figures. I believe that the storm marketplace and what changes or improvements are still needed has passed and now we find ourselves well on the path toward in your opinion? recovery. After the attacks and the compensation that insur- Deregulation in the finance industry was immediate and, I ance companies paid, people became more aware of the ad- would say, a precondition for our country to join the Euro- vantages of being insured, which is ultimately a guarantee, zone. In a short period of time, Greece managed to adopt new despite the necessary increase in premiums. EU measures.

In the new deregulated economic environment, Many analysts believe that the energy sector which sorts of advice do you believe business- The Aspis Group will play a major role in global growth in the people would be best to follow regarding financial next decade. Do you believe energy markets will The Aspis Group of Companies planning and allocation of resources, especially change dramatically during the next ten years? with regard to business growth? is active in insurance, banking, I believe that your question is of vital im- I believe that after the recent deregulation of investment, and real estate ser- portance, especially since the war in Iraq consumer credit by the Bank of Greece, clients vices. The Group is a key player in put the country back on the energy map, will show more interest in credit institutions given the amount of oil that Iraq exports Greece and is developing a signifi- increasing the limit of consumer loans. With and the large oil reserves that it has. Con- regard to business growth, I believe that it is cant presence in other European sidering the influence that oil has had on the right time for expansion, something sup- markets. Aspis has been active for the international economy and on interna- ported by the latest reduction in interest rates tional politics over the last 40 years, I be- 60 years and bases its continued by the U.S. Federal Reserve. The low cost of lieve that energy will be one of the key is- business loans helps to modernize outdated success on extensive knowledge sues that will play a major role and leave a premises and to investing in new technology. and experience. mark on each new decade.

SUMMER 2003 AEGEAN NEWS 29 TRAVEL

Halkidiki Forests and Seas Meet Under the Mediterranean Sun

Halkidiki, a three-fingered peninsula located roughly in the center of Macedonia, juts deeply into the Aegean Sea, creating the longest stretch of coastline, estimated to be more than 500 kilometers long, in mainland Greece.

he main peninsula terminates in houses finds from the peninsula’s an- buzz with activity. Visitors can find arts three smaller ones: Kassandra, cient sites. It includes artifacts from the and crafts on sale, authentic tavernas, TSithonia, and Mount Athos, bet- sanctuary of Zeus at Aphytis and from and warm hospitable people. Halkidiki ter known among Greeks as Aghion the ancient city of Akanthos, sites that has 12 thermal springs, two of which are Oros—the Holy Mountain. Halkidiki's are also worth a visit. recognized by the state for their thera- landscape offers a stunning variety: long Ancient Olynthos dates to the 7th peutic properties. sandy beaches in Kalamaria, Nikiti, century BC, and toward the end of the Luxury hotel complexes such as Porto Toroni, and Ierissos; alternating rocks 4th century BC was the capital of Karras, which hosted the EU summit and trees in Sithonia; picturesque small Halkidiki. The mosaics there are the meeting in June, 2003, offer casinos, bays in Vourvourou; and impressive rocks oldest in Europe. In 348 BC, Philip II, horseback riding, golf, tennis, and wa- at the Capes of Kassandra, Sithonia and King of Macedonia razed the city to the tersport facilities, where one can swim, Athos. Halkidiki does not have any rivers, ground. Ancient Stageira was the birth- canoe, scuba-dive, and fish off the one of the reasons why the sea surround- place of Aristotle, the most renowned coast. Towns such as Arnaia, nestled on ing it is one of the clearest in Greece. philosopher of antiquity and tutor of forest-covered mountain slopes, are an Although the superb sandy beaches Alexander the Great. The remains of alternative to the coast, where visitors and aquamarine sea are the primary the ancient city and its fortifications can encounter rustic architecture, stores attractions for holidaymakers, the region still be admired. selling handmade crafts, and friendly offers many more things to see and do. The famed peninsula of Mount Bed and Breakfast accommodations. The cave of Petralonas stretches for two Athos, home to 20 monasteries and kilometers and has impressive stalag- 1,700 monks, is a semi-autonomous For ªore Information mites and stalagmites. Excavators found state. It is shielded from modern civi- Central administration (Polygyros) a 260,000 year-old human skull in the lization and technology, and offers a www.halkidiki.gov.gr cave, providing evidence of pre-histori- place of recluse and prayer to male 23710 23192, 23710 39265 cal habitation. travellers and pilgrims. Halkidiki Hotels Association Polygyros, the capital of the Throughout the region, pic- www.halkidiki-hotels.gr prefecture, is home of the ar- turesque towns with Macedon- e-mail: [email protected] chaeological museum, which ian or monastic architecture 2310 429 020, 2310 429 022

30 AEGEAN NEWS SUMMER 2003 THE AEGEAN IMAGE

A look that says “We ‘re different” Aegean is proud of the contemporary image of its petrol stations. Station personnel enhance the "Aegean Look" through clothing and products that reflect a commitment to quality and customer service.

SUMMER 2003 AEGEAN NEWS 31 Aegean

AEGEAN is a diverse group of companies active in the energy and ship- ping industries and is committed to providing its clients with the best products, services, and solutions to meet their needs. The AEGEAN group markets fuels and lubricants in the bunkering and retail sec- tors, is a leader in top-quality bunkering services, provides marine transport through its fleet of 26 tankers, and of- fers 24/7 shipping services to trusted clients through- out the world.

SERVICE AND PRICE Founded in 1990 by Dimitris Melissanidis, the company's Chairman, AEGEAN is committed to providing its customers with unmatched ser- vices at the most competitive prices. It has grown in just over a decade into a dynamic force in the industry and from its headquarters in Piraeus, Greece AEGEAN directs its domestic and interna- tional operations. The company is privately held and 100% Greek owned.

A DYNAMIC GROWTH STRATEGY Through a strategy of responding to market needs, AEGEAN has successfully grown to be an industry leader that is committed to excellence in customer satisfaction, environmental awareness, and over- all quality. The company is ISO 9002 accredit- ed, its ships meet ISM standards, and AEGEAN's bunkering operations are on the FOBAS White List. AEGEAN employs more than 1,000 profes- sionals who are the foundation of the company's success. In 2002, turnover reached $1.5 billion. In addition to its headquarters in Piraeus, the company has offices in Thessaloniki, Greece and an international pres- ence in the United Arab Emirates, Venezuela, Russia, Bulgaria, Gibraltar, and the United States.

FULLY-EQIUPPED FACILITIES AEGEAN has two fully equipped depots to handle its fuel needs. The depot in Alexandroupolis serves clients and customers in northern Greece and southeast Europe. The company's depot in Aspropyrgos serves southern Greece and the important port of Piraeus. www.aegeanoil.gr