DUBAI, Sept 1 The U.S. military has not renewed
its contract to buy jet fuel from Emirates National Oil Company
(ENOC) in the United Arab Emirates (UAE) because other suppliers
made cheaper bids, the U.S. Department of Defense said.
Dubai government-owned ENOC was contracted by the U.S.
military to supply jet fuel to Al Minhad Air Base near Dubai
from mid-2011 to the start of September 2013.
ENOC, which makes fuel from Iranian oil at a refinery near
Dubai, has not been awarded any U.S. military contract renewals
in the UAE. Chevron won the new contract to supply U.S.
allied military jets refuelling in Dubai.
"ENOC was not awarded a contract because ENOC was not the
lowest price offerer," a spokesman for the U.S. Department of
Defense said in an e-mail when asked if the deal was not renewed
because of ENOC's ongoing use of Iranian oil.
Chevron, whose UAE offices are housed within the ENOC
complex in Dubai, declined to comment on commercial agreements
or its relationship with ENOC.
The United States has urged other users of Iranian oil to
slash their imports over the last two years as Washington tries
to starve Tehran of funds for its disputed nuclear activities.
U.S. officials have asked ENOC to reduce its imports of
light Iranian oil, but close U.S. ally Dubai is still importing
large quantities, according to shipping data, because its
refinery is designed to run on it.
ENOC loses hundreds of millions of dollars a year because it
is obliged by UAE rules to sell gasoline at a fraction of
international market rates.
Plentiful supplies of cheap Iranian oil available a short
voyage across the Gulf help offset the loss.
The Al Minhad airbase near Dubai is a hub for U.S.-allied
forces in the Middle East.