Bunkering - Aegean Marine Petroleum Network Inc

Aegean News 

T H E Q U A R T E R L Y M A G A Z I N E O F A E G E A N 

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 

Forum 

Bunkering 

A Strong Aegean Presence

editorial 

Greece's six-month EU Presidency has concentrated 

a great deal of attention on Southeast Europe and 

Greece's role in the political, economic, and business 

spheres. One of the primary areas that the Presidency 

focused on was energy. As the entire Balkan region develops, 

energy demands will grow accordingly and a 

new set of political and economic relationships will 

emerge. An interconnected energy network will ensure 

that supply is uninterrupted so that consumers' needs 

are met. The energy sector's major growth, however, 

will be the result of private investment and initiative. 

AEGEAN has been following energy trends in the consumer and business 

market as well as in the all-important shipping sector. We are responding not only 

to new dynamics within the market but to new regulations and standards so that our 

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 environment 

that will be radically different in a few years. 

In addition to providing the best products and services to our customers, 

AEGEAN believes that community involvement creates relationships that help all of 

us develop. For this reason, we have been active in supporting commercial projects, 

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. 

The tragic loss of Takis Kapsomenakis was a blow to all of us at AEGEAN. Takis 

will always be in our thoughts and prayers and will always be part of our family. 

∆Ô honor his memory and to remember him on a daily basis, we renamed the newlyacquired, 

double-hulled D/X ANAHUAC 32000 DWT “CAPTAIN TAKIS.” 

I wish everyone a safe, happy, and joyful summer season and look forward to renewed 

cooperation in the autumn. 

Aegean 

Core Activities 

Retail 

➔ 

More than 280 gas stations throughout 

Greece proudly display the AEGEAN 

logo, and our network is growing every 

week. AEGEAN's market share in Greece 

is 4.5%. 

Shipping 

➔ 

AEGEAN manages a fleet of 26 tankers, 

ranging from 3,500DWT to 100,000 

DWT, that transfers and delivers oil to 

our clients throughout the world. All 

ships meet ISM standards. 

Bunkering 

➔ 

In Piraeus, Gibraltar, Venezuela, and 

the United Arab Emirates, AEGEAN is a 

leader in providing the best bunkering 

services available. In Piraeus AEGEAN 

is the market leader in bunkering. 

Agency Services 

➔ 

Ships from throughout the world rely 

on our agency services at Piraeus and 

Gibraltar 24/7, from loading and discharging, 

to spare parts and supplies. 

Lubricants 

➔ 

AEGEAN exclusively stocks and sells 

ChevronTexaco automotive lubricants 

throughout its retail network. 

DIMITRIS MELISSANIDIS 

SUMMER 2003 AEGEAN NEWS 1

contents 

8 

Pantelis 

Kapros, 

Chairman of RAE, 

discusses current 

energy topics at a 

time of swift change. 

12 

Aegean News explores 

energy connections 

throughout the 

Balkans. 

18 

Aegean's new van 

initiative is aimed 

at guaranteeing the 

quality of products 

and services. 

Summer 2003 

Aegean News is published 

quarterly by AEGEAN 

MANAGING EDITOR 

Raymond Matera 

CONTRIBUTING EDITOR 

George Fintikakis 

LAYOUT AND PRODUCTION 

Multimedia S.A. 

PRINTING AND BINDING 

A. Psillidis & Co. 

OWNER 


51 Akti Miaouli Street 

185 36 Piraeus, Greece 

Tel: +30 210 429 2530 

Fax: +30 210 429 3074 

E-Mail: info@aegeanoil.gr 

Internet: www.aegeanoil.gr 

Comments and suggestions 

are welcomed. 

Aegean News is free of charge 

and is available, subject to 

availability, to any interested person 

or organization. 

4 AEGEAN UPDATE 

6 FLOWS & CURRENTS 

Trends and News in the oil and energy fields 

8 INTERVIEW 

Pantelis Kapros, Chairman of the Regulating 

Authority for Energy, speaks to Aegean News 

11 GIBRALTAR 

An Important Location for Aegean 

12 SOUTHEAST EUROPE 

∞n Energy Map 

16 A WIN-WIN RELATIONSHIP 

An interview with George Kandylis, Managing 

Director of ChevronTexaco Greek Affiliate 

18 CONTINUED GROWTH IN 

MARKET SHARE 

Konstantinos Poursanidis on the Domestic 

Market and Aegean's New Policies 

20 BUNKERING 

Gregory Robolakis on Fluctuations in Platts' 

Prices and the importance of Sulphur in Fuels 

22 AGENCY NEWS 

Nikolaos Firippis with an Agency Update 

23 HELLENIC SLOPS 

Maintaining Environmental Standards 

24 AEGEAN PEOPLE 

25 STATION OF THE MONTH 

26 EU NOTEBOOK 

Greece's Presidency 

28 MARINE TRADITIONS 

The Ancient Trireme 

29 FORUM 

Paul Psomiades, President and CEO of the Aspis 

Group of Companies 

30 TRAVEL 

Halkidiki: Forests and Seas Meet Under the 

Mediterranean Sun 

31 THE AEGEAN IMAGE 

Products that say "We're different" 

32 AEGEAN PROFILE 


AEGEAN UPDATE 

Panayiotis 

Kapsomenakis 

1965-2003 

Panagiotis "Takis" Kapsomenakis died June 2 

in a traffic accident in Peristeri. Takis was 

Operations Manager at Aegean since 1998. 

Dimitris Melissanidis, Chairman of Aegean, 

said, "Takis was one of the best employees in the 

company and his energy, smile, and cooperative spirit will be sorely missed. 

Everyone at Aegean extends their heartfelt condolences to Takis' family during 

this very difficult period and all our prayers are with them." Mr. Kapsomenakis 

leaves a wife, Elena, his parents, and a brother. 

Aegean Sponsors IPA Event in Alexandroupolis 

The Hellas Section, Region of Alexandroupolis, of the International Police Association 

(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 welcomed 

the more than 50 delegates on behalf of Dimitris Melissanidis, Chairman 

of Aegean, to Aegean's facilities in Alexandroupolis and was honored by 

the delegates at the formal ceremony. Mr. Pistolis is manager of the Aegean office 

in Alexandroupolis. 

The IPA was formed in 1950 as a non-partisan association to promote 

friendship, cooperation, and solidarity among police officers throughout the 

world. Greece has been a member since 1966. Michael Pitiakoudis is President 

of IPA's Alexandroupolis branch and Dimosthenis Marinididis is Secretary 

General. 

Aegean Sponsors 

Andrew Natsios Presentation 

Aegean sponsored the presentation of 

Andrew Natsios (photo-L), Administrator 

of USAID, who spoke at an 

American-Hellenic Chamber of Commerce 

event on May 22 at the Athens 

Hilton. USAID (the U.S. Agency for International 

Development) provides economic, 

development and humanitarian 

assistance around the world in support 

of the foreign policy goals of the United 

States. Mr. Natsios discussed opportunities 

that Greek companies have to participate 

in the reconstruction of Iraq and 

spoke about a variety of programs that 

USAID sponsors in Southeast Europe. 

Dimitris Melissanidis (photo-R), 

Chairman of Aegean, met with Mr. 

Natsios prior to the official presentation, 

and reviewed the current environment 

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 

port safety codes. Bunkering issues included legal 

case studies in the event of business failures, 

technical and credit topics, and face-to-face sessions 

with international ship owners, suppliers, 

traders, and brokers. 

4 AEGEAN NEWS SUMMER 2003

Holidays 2003 

The Guide 

Holidays 2003: The Guide is the title of a 64-page 

guide to summer in Greece and beyond, an insert in 

the June 22nd edition of Eleftherotypia on Sunday 

that was sponsored by Aegean. The summer guide offers 

information on Greece's islands, alternative holidays 

that include rafting, trekking, and rock climbing, 

and a guide to chartering a yacht for independent sailing 

vacations. The compact booklet makes a handy companion for those who 

want to explore Greece's many wonderful beaches, mountains, and resorts. 

Association of Pontians in Athens 

More than 250 Athenians of Pontian origin 

gathered at the Grande Bretagne Hotel June 

25 to inaugurate the Pontian Association 

of Athens (Euxinos) dedicated to preserving 

the rich Pontian heritage and integrating 

it into the Athenian political and cultural 

landscape. Many Pontians are prominent 

members of Athenian society and are 

leaders in business, the arts, politics, science, 

athletics, and community affairs. 

Dimitris Melissanidis, Chairman of 

Aegean, is President of the Association's 

provisional Executive Committee. During 

his address to the members, Mr. Melissanidis 

noted that the Association will play 

a vital role to promote Pontian history, 

recognize the significant achievements 

that Pontians have made in Greece, and fill 

a vacuum that has long existed in Athens. 

Harry Klin, Achilleas Aslanidis, Takis 

Loukanidis, Elias Atmatzidis, Alkis Passalidis, 

Pavlos Kontoyiannidis, Kostas 

Nestoridis, Savvas Kalenteridis, Anonis 

Antoniadis, Polychronos Enepekidis, Sofia 

Iordanidou, and many other Athenians of 

Pontian origin attended the event which 

featured Pontian dance and music. 

Aegean Supports 

Concert 

Vasillis Lekkas, one of Greece's most 

admired interpreters of the music of 

Manos Hatzidakis, was to perform 

at the Ancient Agora on July 27. 

Aegean is supporting the concert, 

organized under the auspices of the 

Ministry of Health. 


Tops Growth 

For the third consecutive year, Aegean 

led in the growth of fuel sales in Greece. 

According to figures released by the 

Ministry of Development, Aegean's 

sales of gasoline and diesel (automotive 

and heating) grew to 355,010 MT in 

2002, up from 282,798 MT in 2001, 

an increase of 25.6%. 

Logging On 

Customers and associates of Aegean 

may visit the company's web site 

[www.aegeanoil.gr] to learn about the 

company's activities. Bunkering customers 

may register online to conduct 

business and maintain contact with 

the bunkering department. 

Map of Greece in VIMAgazino 

In the June 15 th 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 natural 

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. 


FLOWS & CURRENTS 

Greece Seeks Closer Energy Ties With FYROM 

Greece hopes to establish closer energy ties with FYROM according to a statement 

by Development Minister Akis Tsohatzopoulos who said that better energy 

relations would help complete Greece and FYROM's connection to the trans- 

European energy networks for oil, natural gas, and electricity. The minister, 

speaking to reporters in Skopje, said the neighboring countries are also examining 

ways to promote the environment while developing new energy projects. 

Athens Declaration Adopted 

Euro-Mediterranean Energy Agreement Signed 

Energy ministers from the EU, including the 10 countries to join in 2004, and ministers 

from 10 other Mediterranean countries signed the Athens Declaration for Euro-Mediterranean 

Cooperation. The Athens Declaration, according to Development Minister Akis Tsohatzopoulos, 

"is a political framework that aims to create an integrated and inter-connected 

energy market" among the signatory nations. Within the agreement, the nations agree 

to promote common policies in oil, natural gas, and electricity. 

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 include 

Turkey, Algeria, Morocco, Tunisia as well as the Palestinian Authority. 

Bad Weather Travel 

The Ministry of Mercantile Marine stated 

that there would be no changes to 

procedures governing the prohibition of 

T 

travel for passenger liners in bad weather. 

The following points apply: 

ñõõ The priority of the Greek transport 

industry at sea is safety and quality 

ñõõ õGreece is the only country in the 

world that prohibits travel for sailboats 

in bad weather 

ñõõ In 2003, the current IT system will 

be updated to apply regionally 

ñõõ The prohibition does not apply to cargo 

and Ro-Ro ships over 75 meters 

ñõõ Should a passenger liner not carry 

passengers but cargo only, then rules 

for cargo ships apply 

Oil Tankers 

to be Monitored 

The Merchant Marine Ministry 

announced plans to monitor tankers 

at points where they enter the Aegean 

Sea, in order to keep track of all 

movements and to be on the alert for 

potential accidents and oil spills. 

The ministry will install an electronic 

Vessel Traffic Services (VTS) system 

that is currently in operation in the 

country's main ports. 

Shipbuilding and Repair Zone of Piraeus 

The Ministry of Merchant Marine announced that it 

has completed measures to support and modernize 

the shipyards of Piraeus. A newly created company, 

Piraeus Shipbuilding and Repair Zone S.A., has been 

formed to advance the interests of shipbuilding and 

repair in the greater Piraeus area. 

The principal shareholder in Piraeus Shipbuilding 

and Repair Zone S.A is the Piraeus Port Authority 

S.A., and will take measures to attract more investors 

in the newly-formed company. Piraeus Shipbuilding 

and Repair Zone S.A will organize, develop, manage, 

and commercially promote the interests of shipbuilding and repair enterprises 

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 facilities 

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. 


Efthimios Mitropoulos Elected 

New IMO Secretary-General 

The International Maritime Organization's 40-member Council elected Efthimios Mitropoulos 

of Greece to be the IMO's new Secretary-General. Mr. Mitropoulos will assume his new duties 

at the end of the year when the incumbent, William O'Neil of Canada, steps down. 

The IMO is the specialized agency of the United Nations with responsibility for safety of shipping 

and the prevention of maritime pollution by ships. 

Mr. Mitropoulos, speaking after his election, said "Although I interpret the Council's vote as a 

vote of confidence in the particular individual, I cannot see the honor that goes with the vote 

as not reflecting on my family, my family's home town, and my country, all three with deep 

maritime roots, of which I am very proud." 

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. 

New Website for the Ministry 

of Mercantile Marine 

Under the Greek Presidency 2003, the 

Ministry of Mercantile Marine (MMM) 

created a new website to make information 

on matters pertinent to the 

shipping industry available to the public: 

www.mmm.gov.gr 

The new website is a dynamic and 

modern information gateway serving 

the citizen "without boundaries." It will 

make information more accessible 

worldwide, using the latest technology 

to achieve MMM objectives and address 

shipping policy issues. 

IEA Says New Action Needed 

to Maintain Safe Energy System 

The new website will compliment the 

existing MMM website (www.yen.gr), 

which will continue to function as the 

central website of the Ministry. 

In a communiqué issued following a recent EU ministerial meeting, the IEA 

(International Energy Agency) said: "Meeting the long-term challenges of maintaining 

a secure, efficient, and safe energy system will require near-term action. 

Substantial new investment will be needed to provide secure supply, to reduced 

growing energy-related greenhouse gas emissions and to overcome the lack of 

access to electricity for more than a quarter of the world's population." 

Speaking after the meeting, Development Minister Akis Tsohatzopoulos said 

"We find that apart from the IEA, the correct stance of the OPEC members 

contributed to an easy and effective handling of the situation during the Iraqi 

crisis, adequate supplies and security for consumers. Today we see a steady fall in 

prices, and the outlook is that with Iraq's resumption of supplies relatively soon, 

there will be a further downward stabilization of prices." 

Ministers Pledge 

Speedy Transport Links 

European Union Ministers have 

pledged to re-start a program 

designed to improve transport 

among EU Member States and the 

10 accession countries. Ministers 

from five countries—Greece, 

France, Portugal, Italy, and Spain— 

signed a separate accord to develop 

"supersealanes" for short-haul 

freight traffic. 

Greek Satellite 

Launched 

Hellas Sat, Greece and Cyprus's first 

satellite, was launched May 13 

aboard a Lockheed Martin ATLAS 

V rocket from Cape Canaveral, 

Florida. The $178 million project 

will permit complete coverage of 

the 2004 Olympic Games and will 

provide a broad array of services 

for Greece and Cyprus, including 

satellite Internet, two-way 

broadband, and complete 

telecommunications services to 

Greece's islands and remote regions. 

Five companies are part of the 

Hellas-Sat Consortium: the Hellenic 

Telecommunication Organization 

(OTE), the Cypriot company 

Avacom Net, the Cyprus Bank 

of Development, the Hellenic 

Aerospace Industry, and Telesat, 

from Canada. 


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 petroleum 

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 expansion 

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 companies 

within a scaled economic framework so that they may 

acquire a pan-Hellenic scope; they may acquire storage depots 

in order to have more practical reserves and are therefore 

not simply resellers dependent on the refineries. 

Pantelis Kapros | RAE Chairman 

The new law regarding the petroleum product market brings 

higher competition and lower prices for the consumer. 

The Chairman of the Regulating Authority for Energy, professor 

Pantelis Kapros, speaks to Aegean News about the new rules in 

the fuel market. For example, whereas each importer must now 

maintain safety reserves of 90 days, all importers now have 

unfettered access to storage depots in refineries. 

Mr. Kapros points out that, essentially, the previous administration 

regime prevented the import of fuel and petroleum products 

by companies that did not have their own storage space. 

"Thus, only the refineries made imports, with the result that 

the prices that were given to traders were higher than what 

they could have been," he says. These anomalies are dealt with 

under the new law. At the same time, vertically integrated companies 

have been given the green light, and a new system for 

awarding licenses is being established for each sector—refinement, 

transport, marketing, and retail. 

How does the Regulation for Reserve Observation, which constitutes 

a core element of the law, facilitate competition 

A key factor for the smooth operation of the market in an 

environment of free competition is that all fuel importers 

have access to the storage depots of the refineries. 

Suppose that someone imports petroleum products, who 

must observe a 90-day safety reserve for these petroleum 

products, as is required by the new law, does not have certified 

storage spaces. He turns, therefore, to the refineries that 

have reservoirs. What happened until recently The refineries 

allowed only those with whom they had fuel supply 

contracts to use their depots. In other words, it was necessary 

to be a customer of the refinery to observe the safety 

reserves requirement. The European Court condemned our 

country for this practice, since it damages competition and 

essentially prevents imports by those who do not have their 

own storage space. In practice, only the refineries made imports, 

with the result that prices given to dealers were set 


very high. From now on, the refineries will be required to 

lease storage space to all companies that import fuel, which 

enables them to observe the requirement for 90-day reserves. 

For example, ELPE, which has very large storage 

spaces, will not be able to deny some smaller player in the 

market that imports fuel the lease of their storage space, 

who is then, of course, required to observe safety reserves. 

In this way, the safety reserves will be increased and consequently 

the price of fuels—that which interests consumers— 

will be much lower than. 

What does the law make provisions for, however, with regards to 

its contravention 

The tariffs for leasing of storage space will be publicized. 

Moreover, they will be checked. For example, ELPE will not 

be allowed to assign storage space free of charge to their 

subsidiary company that deals in the fuel market and at the 

same time lease space to a third party at high prices. Something 

like this would constitute contravention of the law. In 

fact, the new law allows RAE to propose a maximum tariff 

at any given moment to the Minister of Development should 

a case of profiteering be brought to light. 

"A key factor for the smooth operation 

of the market in an environment of free 

competition is that all fuel importers 

have access to the storage depots of the 

refineries." 

Do you believe that competition in the Greek petroleum product 

market today is functioning correctly 

When we talk about competition, we refer to the profit margin 

of companies who import raw material and not to the 

traders that buy refined oil for resale to service stations. 

Many times I hear people say "In Greece we have so many 

companies distributing oil, the price of petrol should be 

lower." However, all these traders are essentially resellers of 

the same product after buying it from the same supplier. A 

key element of the new law is imports. The importation of 

oil by traders will be that which will henceforth regulate the 

fluctuation of prices in retail. Only then can we speak of the 

healthy performance of competition in Greece. I believe 

that the day that this will happen will soon come. So, competition 

means that all companies in the fuel market can 

import oil. Not, as it stood in the past, buying from the three 

existing refineries and subsequently quibbling over their individual 

profit margins! 

RAE 

The Market Reguator 

The Regulating Authority for Energy (RAE) is the independent 

administrative authority that was formed under law 2773/99, 

whose role is to make proposals to facilitate free and healthy 

competition in the deregulated energy market. 

RAEinititates proposals regarding prices, the licensing of 

private investors, and for the long-term energy strategy of 

Greece. 

Within this framework, RAE has delivered an interesting proposal 

for the "Long-term Energy Plan" of the country to the 

Minister of Development, AkisTsohatzopoulos, that addresses 

basic policy aspects that Greece should follow until 2010. According 

to this plan, ú10 billion need to be invested over the 

next few years to ensure that the country’s energy supplies 

remain sufficient. 

RAE "photographs" all the likely dangers that apply to strategic 

planning in the energy market and proposes solutions. It 

also points out that, provided that the necessary investments 

are made, by 2010 Greece will have acquired a much more 

modern and competitive energy system, which will provide 

the consumer with clean, sufficient and, most important, affordable 

energy. 

RAE’s task is also to propose changes to law 2773/99, on 

deregulating the energy market, to make the institutional 

framework more efficient and welcoming to private investors. 

RAE has already made concrete proposals to help "unblock" 

the investment plans of private investors that amount to ú1.5 

billion. The construction of thermoelectric generating plants is 

needed, and yet today, two years into a free market, the plans 

for the plants remain neglected. 

The lack of interest from investors stems from the absence of a 

suitable institutional framework which will enable them to be 

competitive in the production and sale of electricity. One of the 

main reasons that private competitors with the national electricity 

provider, DEH, do not pursue their investment plans, appears 

to be that lignite, used to generate 70% of electricity, is 

supplied to DEH free of charge. The cost of natural gas, which 

would be used by private investors, is naturally greater by far, 

and entering into competition with the sole-provider of electricity 

today would not be feasible. 


RAE INTERVIEW 

How are today’s prices determined 

Prices are determined in a logistical way and not on the basis 

of supply and demand. We begin with the FOB Med international 

prices (the prices that apply to fuel sold in the 

Eastern Mediterranean) and begin to add a margin of profit 

for the refinery, transport costs, a margin of profit for the 

distribution and delivery of fuel by companies and service 

stations, and we reach a final price. This is not acceptable, 

especially in the context of a free market. Normally, prices 

would be determined on the basis of supply and demand. 

Therefore, in order for competition to function properly, the 

free importation of fuel must be allowed. 

Do you believe that the ELPE-Petrola agreement will help to create 

healthier competition 

Absolutely. For a long time, I have been of the opinion that 

three refineries are too many for a country the size of 

Greece. On the other hand, for many years now Petrola has 

focused on diesel. At the same time, however, it did not do 

as much as it could have, given the opportunity in this sector: 

It remained in the sector of general refinement; it was 

not modernized, nor were any large investments made. 

Therefore, the merger has been beneficial indeed. Here I 

would like to mention a very sensitive issue because as the 

Regulating Authority we are concerned and may intervene. 

It has to do with the enormous storage spaces of the newly 

formed company. If the administration of the new company 

uses the reservoirs in a way that contravenes the new law 

and denies their lease to smaller companies, RAE will not 

hesitate to intervene since something like this would harm 

competition. We must be very careful when dealing with 

this issue. 

With regard to the organization of petroleum products, the new 

law also provides for the establishment of special measures 

(KEDAK) with increased powers of control. Do we have any results 

from these control measures as yet 

From the first day of operation, the Control Measures for 

Distribution and Storage of Fuel has inspected, on average, 

four service stations per day and has found that 10%-15% 

adulterate the product and evade taxes. The tax evasion is 

owed to the fact that, for example, certain syndicates "baptize" 

diesel used for heating, which has a lower tax, as 

diesel for motors, which is sold with a higher tax, so that 

they pocket the difference. 

This also happens with shipping fuel that is sold as diesel, 

and with unleaded fuel that is "baptized" super. In any 

case, today tax evasion amounts to 25% to 30% of total 

turnover in the petroleum product sector. 

Oil to Remain the Favorite 

The advantages of oil in terms of calorific value and ease of use 

readily explain its rapid breakthrough in the western economies in 

the immediate post-war period. Its properties gave rise to road 

transport 99% dependent on oil. With greater of lesser speed it replaced 

coal for heating and then for the production 

of electricity. 

Although oil is being phased out of our 

economies to a certain extent, as a result of the 

oil crisis, it remains an essential economic component 

in the Member states, primarily in transport. 

Transport currently accounts for more that 

half of oil consumption. While the oil market is a 

high-tension market, whether this be due to producer-consumer 

dialogue, prices on the international market, quantities available, 

its impact on the environment or accidents at sea with wide media 

exposure, it has to be said that it continues to enjoy the favor of 

the public opinion. 

Consumption in Europe will increase, with a higher growth rate 

in applicant countries, because of their need to catch up in the passenger 

and goods transport sectors. 

More than 70% of the world’s oil reserves are located in the 

member states of OPEC. In 2020 OPEC will cover 50% of the 

Unions’ needs with production at 55 million barrels a day, compared 

to 32 million barrels a day in 2000. 

Factors likely to affect price levels include the economic growth 

rates of importing countries, the progress made in 

curbing demand, the addition of new reserves, and 

the tightening of environmental protection standards. 

Technological developments will pose the 

principal threat to OPEC namely; new production 

techniques, non-conventional oil, and the development 

of new fuel substitutes. 

In 1989 the countries of the former Soviet 

Union were producing more than 11 million barrels a day, and production 

could double from 7.8 million barrels a day in 2000 to 14 

million in 2020. The known reserves in the Caspian Sea basin (25 

billion barrels) are roughly the same as in the North Sea and the 

USA. Potential reserves could exceed 200 billion barrels, i.e. 25% 

of known reserves in the Middle East. 


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. 

The historic rock is also one of the 

busiest bunkering ports in the 

Mediterranean and Aegean is 

well-established in Gibraltar, where 

Aegean Bunkering (Gibraltar) Ltd. 

supplied 12% of the market in 2002. 

It was not until 711 A.D. that 

Gibraltar became inhabited, during the 

Mohammedan invasion led by Tariqibn-Zeyed. 

In 1462, the Spaniards captured 

the six-square kilometer outpost, 

which it lost to the Anglo-Dutch forces 

in the war of Spanish Succession in 

1704. Since then, it has been in British 

hands and today is a British Dependent 

Territory. It is self-governing except for 

matters relating to foreign policy, for 

which it relies on Great Britain. 

The strategic island is the welcoming 

beacon for ships entering the Mediterranean 

from the Atlantic and accommodates 

all kinds of vessels, including 

cruise liners. Vessels calling for bunkers 

can be berthed at the Western Arm 

where the outer side is 490 meters long 

and has a draft up to 9.6 meters. Ships 

of deeper draft can be accommodated 

according to the tide. 

Bunkering continues to grow at 

Gibraltar, where 3.3 million tons of 

bunkers were delivered in 2002, compared 

with 0.84 million tons in 1990. 

"The historic rock is also 

one of the busiest bunkering 

ports in the Mediterranean 

and Aegean is wellestablished 

in Gibraltar, 

where Aegean Bunkering 

(Gibraltar) Ltd. supplied 12% 

of the market in 2002." 

Within the port, bunkering is now the 

primary commercial activity and more 

than 6,000 vessels are served annually. 

Aegean Bunkering (Gibraltar) Ltd. 

has three bunker tankers with a total 

capacity of 13,000 tons at the Port of 

Gibraltar, where the vessels deliver fuel 

for Aegean Marine Petroleum S.A. 

The port has responded to the demands 

of servicing a large number of 

vessels and has also placed itself as a 

center for tourism. Among the island's 

attractions are St. Michaels cave, the 

Barbary Apes Den, the Moorish Castle, 

and the City Under Siege exposition. 

Diving, sailing, and dolphin watching 

are popular activities on the island, 

where many visitors spend just a short 

time, either passing through or on day 

trips from Spain or North Africa. 

Some of Gibraltar's Port Provisions: 

● Red Ensign Category 1 ship register 

● Three dry docks up to panamax, 

including the largest covered dry 

dock in the Mediterranean 

● Wide range of repair facilities 

● State-of-the-art cruise facilities 

● International Airport 

● Cargo handling facilities 

● Off-limits services 

● Provision of charters 

● Compass adjusting 

● Three yacht marinas with 450 berths 


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. 

The growth of the Greek energy 

market will depend to a large 

extent on the dynamics of international 

markets, and on conditions 

and developments in Southeast 

Europe. 

The turnover of the Greek energy 

market today is estimated to be 

roughly ú7 billion annually and is expected 

to increase significantly, 

mainly because international networks 

originating in Central Asia 

(Iran, Turkmenistan, Azerbaijan, and 

Kazakhstan) will go through Turkey 

and Greece before connecting to the 

larger markets of Western Europe 

through a nodal intersection in Italy. 

These networks include new oil and 

gas pipelines and electric network 

connections, which will facilitate the 

conveyance of fuel from the sources of 

production to Europe. Initial estimates 

of the projects bring the cost to 

roughly ú22 billion. However, as the 

Minister of Development, Akis Tsohatzopoulos, 

and the Community 

Representative, Loyola de Palacio, 

emphasized at a recent congress in 

Athens, the essential requirements for 

the projects' materialization are political 

stability and inter-country collaboration, 

so that private capital is 

attracted. 

Projects with a direct interest for 

Greece include the Burgas-Alexandroupolis 

oil pipeline, as well as the 

natural gas pipelines from Turkey to 

Greece and Italy, from Turkey to 

Greece and the western Balkans, and 

from Turkey to Bulgaria and the 

Eastern Balkans, all with a final destination 

of Europe. Also of interest 

are the electricity networks linking 

Greece with Turkey, Yugoslavia, and 

“The turnover of the Greek energy market is estimated to 

be roughly ú7 billion annually and is expected to increase 

significantly, mainly because international networks will 

go through Turkey and Greece.” 

Bulgaria, as well as a Cypriot pipeline, 

since it transports gas from Egypt to 

Lebanon and Syria, and terminates in 

Cyprus. 

These developments are important 

not only for the Greek economy but 

also for raising Greece’s diplomatic 

standing in the region. In addition to 

oil, natural gas is a primary player 

that will shape the future energy map 

of the Balkans and Europe. 

Pipelines 

The need for the transportation of gas 

from the East (Caspian Sea, Iran) to 

the West will shortly lead to the manufacturing 

of pipelines. All possible 

routes go through either Russia or 

Turkey. The pipelines through Russia 

(many of which already exist) do not 

threaten to decrease supplies from this 

country, which will continue to provide 

supplies to the European Union. 

Turkey will inevitably be the main 

transit country for natural gas from 

Iran and the Caspian Sea to Europe. 

The principal route westward for gas 

from Turkey is via Greece. Agreements 

and planning have already been com- 


Electricity Network 

Oil Network 

Natural Gas Network

SOUTHEAST EUROPE 

pleted, and the manufacturing of a 

pipeline connecting the networks of 

Turkey and Greece will begin shortly. 

Two different routes are being studied 

for the transportation of gas via 

Greece to Western Europe. The principal 

route is via Italy, through an underwater 

pipeline 180 kilometers long 

(Otranto - Parga), which will connect 

to a pipeline on land 330 kilometers 

long through Greece. The capacity of 

the pipeline will be 6 bcm/year and 

the total cost is estimated to be ú1 billion. 

The feasibility study of the 

pipeline is expected to be completed by 

the end of the year. Greece will, in all 

probability, function as the transit 

country for natural gas in the immediate 

future. Investments exceeding ú1 

billion are required for this purpose. 

Electricity 

Over and above the international electricity 

networks that exist in the 

Balkans, the deregulation in the Greek 

until 2007, especially if the hydroelectric 

units are used more rigorously. 

The deregulated market formally 

came into effect on February 20, 

2001. From this date, the production 

of electric energy in the established 

network of the country was opened to 

competition, and the roughly 7,500 

consumers that are connected to the 

network in high and medium capacities 

(discerning customers which represent 

34% of demand), acquired the 

right to choose their supplier. Until 

now, the Ministry of Development, in 

consultation with RAE, the state regulatory 

agency, has granted seven licenses 

for the construction of large 

natural gas stations with a total output 

of 2,750 MW, but construction has 

not begun on any of them, since all 

face the problem of finding finances. 

Five licenses have also been given for 

the importation of 1,343 MW, but 

until now the imports (DEH aside) 

have amounted to a small part of total 

consumption. 

Oil 

The prospect of manufacturing the 

Burgas-Alexandroupolis pipeline, as 

part of a more general plan for the 

transportation of oil from the Caspian 

Sea to European markets, is important 

The New ELPE 

Protagonists in the Balkans 

The business marriage of Hellenic Petroleum 

and the Latsis group changes a variety 

of factors in the refining and marketing of 

petroleum products. 

The new company, which is currently taking 

shape, while absorbing the strategic ambitions 

of the two groups, will play a more active 

role in the natural gas market and in 

electric energy, both in Greece and abroad. 

In the sector of refining, the new company—with 

four refineries (three in Greece 

and one in the Former Yugoslav Republic 

of Macedonia) and depots that can store 

5.9 million tons of oil—is by definition the 

sovereign power in the domestic market, 

while its expansion into the Balkan countries 

and the Eastern Mediterranean creates 

other dynamics. 

The company will also play a leading role 

in the natural gas market through DEPA, 

Greece's national gas company, in which 

ELPE holds 30% of the stock. This market 

has already entered the development 

stage, and natural gas has begun to enter 

the network of the Gas Distribution Company 

(51% is owned by DEPA), not only 

supplying businesses but also the households 

of Attica. 

Business opportunities in the natural gas 

sector do not lie only in retail sales: 

The pipelines for transportation require 

investments of many billions of euros. 

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 electricity 

generating stations is that privately 

owned stations are not viable as 

long as Greece's PPC (DEH, the national 

electricity company), charges its 

current low tariffs. Despite the rapid 

increase of demand (at 4% annually), it 

is estimated that the existing DEH stations 

and those under construction, together 

with imports, will cover demand 


for the oil transport sector. Undoubtedly, 

if this pipeline is manufactured, 

it will raise the geopolitical standing of 

Greece significantly. It is important to 

note that Greece is capable of producing 

surpluses from refineries, as are 

most European countries. The total 

capacity of the four Greek refineries 

(ELPE Aspropyrgos, EKO, Motor Oil, 

and Petrola) amounts to 22.2 million 

tons annually against a total demand 

of 18.4 million tons. Moreover, the 

Hellenic Petroleum-Petrola agreement 

changes the status quo, not only in the 

Greek oil market but also in that of the 

Balkans and Europe. 

Natural gas 

Developments in the natural gas market 

in Greece and neighboring countries 

will be determined by the large 

deficit of natural gas that exists in 

Western Europe and by the need to 

supplement it using new suppliers, 

namely Iran and the Caspian Sea 

countries. 

Total demand for natural gas in Western 

Europe amounted to roughly 380 

billion cubic metres (bcm) in 2000 and 

this demand has increased by roughly 

3% annually. It is expected to reach 

500 bcm by 2005 and to exceed 730 

bcm by 2020. Imports of gas in 2000 

covered roughly 40% of demand (150 

bcm). This percentage is expected to 

increase rapidly due to the increase in 

demand and the decrease in production, 

and the small reserves of Western 

Europe (5,200 bcm) suffice only for 

18 years at the current rate of production 

(290 bcm annually). 

Two suppliers provide 95% of imports 

of natural gas in Europe: Russia 

(58%) and Algeria (37%). To decrease 

the dependence on these two countries, 

the European Union encourages diversification 

in sources. With this in 

mind, the EU has turned to Iran and 

the countries of the Caspian Sea and 

Central Asia. Iran, with 16% of the 

world’s reserves (23,000 bcm), is the 

second richest country in natural gas 

after Russia. All the countries of the 

region are eager to deal in exports of 

natural gas in an effort to support 

their economic growth. 

The Caspian Sea 

and the Role of Greece 

It has been estimated that there are 

potentially 235 billion barrels of oil in the 

Caspian Sea region. This wealth is found in 

countries at considerable distances from 

world markets. The distance of these 

countries from the markets and their lack of 

infrastructure to facilitate the transportation 

of oil and gas have attracted the attention of 

large oil companies and those with 

technological know-how to the region. The 

transportation of oil to the markets of the 

West or East will not serve energy interests 

only, however. Wider economic and political 

interests will also be served, such as the 

building of roads that will provide access to 

the pipelines. In an effort to decrease the 

influence that Russia has in the region, 

Caspian countries are seeking alternative 

routes that will bypass the existing Russian 

Greece’ s Energy Consumption 

Greece consumes roughly 400,000 barrels of crude oil daily, about 210,000 barrels refined at 

Hellenic Pettoleum and about 190,000 from the refineries of Petrola and Motor Oil. Total annual 

consumption reaches 12.8 million tons, while the strategic reserves of the country amount 

to roughly 3.8 million tons. 

Greece's increase in GNP and improved standard of living translates into a continuous increase 

in oil requirements, a trend set to continue during the next 30 years. For the country to secure 

energy resources until 2010, for economic competitiveness, and for the benefit of consumers, 

investments of many billions of euros in the Greek energy market are essential. 

Greece, more than any other member-state of the EU, depends on energy from oil. The total 

annual consumption of oil for energy in Greece equals 67.95%. The EU average is 49%. Natural 

gas covers a large part of Europe’s energy requirements—24.2% on average—while in 

Greece it covers 2% of total annual energy consumption. 

According to EU legislation, every country should observe reserves of at least 90 days. During 

the Iraq crisis, Greece had roughly 2.5 millions tons in reserves, enough to last 105-110 days. 

transportation network. A similar bypass 

exists serving American interests in the 

transportation network in Iran. Greece is 

seeking to be a player in this market and it is 

precisely for this reason that American and 

Russian diplomacy has been at work to 

influence Athens. However, will Greece be 

able to take on this pivotal role—diplomatic, 

political and economic—in the region To 

what extent have Greece's industrial and 

political leaders fully realized the role that 

Greece can play in the Balkans, the Eastern 

Mediterranean, and the Black Sea-Caspian 

Sea region, a role centered around energy 

resources These are questions that still 

have not been answered. 


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 countries 

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 expanding 

presence nationwide, is the right strategic partner to 

What have been the greatest advantages to the Texaco Chevron 

merger for the company in Greece 

Because of the previous limited presence of Chevron in the 

Greek market, no considerable short-term advantages can be 

seen resulting from the Chevron-Texaco merger. However, a 

ChevronTexaco Greek affiliate, drawing on an extended foundation 

of know-how and an expanded business portfolio, can 

plan its future progress on the basis of a profitable, sustainable, 

and high-tech infrastructure relying on considerable resources. 

From this standpoint, there is a multitude of medium- 

and long-term advantages that we anticipate will further 

enhance our presence in the areas where we operate. 

Many of your products are produced in, and exported from, 

Greece. How do you view Greece as a base for regional operations 

ChevronTexaco Greek affiliate is the ideal supplier of lubricants 

to a number of destinations. It is not only the geographical 

position of our plant that makes us the supply-point of 

choice, it is also our vast experience in the export trade, where 

we have the flexibility to customize our service to perfectly fit 

our customers’ needs. These assets were immediately identified 

as our strong points, and from the moment the merger was 

announced every month has been a record month for our export 

business. In fact, there is even more export potential since 

"The Aegean network, with its superior 

design and expanding presence 

nationwide, is the right strategic partner 

to achieve this goal." 

achieve this goal. Apart from that, the alliance offers Texaco 

and its customers an additional channel for providing 

Texaco's products and services. This allows our strategy to 

be flexible and customer-friendly. It also generates a revenue 

stream adding to our bottom line results. 

Aegean, on the other hand, is creating a value-added 

profile to the end user by utilizing Texaco's brand, which 

has been for decades synonymous with exceptional quality 

and superior technology. Through this cooperation Aegean 

assures itself access to a universal lubricants environment, 

keeping pace with all new developments in the industry and 

sharing years of lubricant retail sales experience. 

Aegean has in hand a strong competitive advantage over other 

Greek companies and can face multinational competitors. Our 

collaboration is a powerful marketing tool to use in the fiercely 

competitive fuels and lubricants retail business in Greece. It 

is, of course, a profitable cooperation for Aegean as well. 


What superior technologies do Aegean and ChevronTexaco customers 

benefit from and what can we look forward to in the future 

regarding technologies in lubricants 

Technologies developed are directed mainly via two channels: 

a) technologies for upgrading lubricants quality and performance 

according to OEM requirements and b) technologies 

for monitoring lubricants condition and servicing, resulting in 

a Technical Consulting Service orientation. EveryTexaco customer 

and Aegean customer will take advantage of both. 

Technology for producing synthetic lubricants is available 

in a wide range of Texaco products from petrol and diesel 

engine oils to synthetic gear oils, in addition to products designed 

for industrial applications. Hydrocracked products 

are also available, as well as conventional oils with the latest 

additive technology which creates outstanding performance 

meeting all OEM guidelines. Our patented technology in 

coolants should also be mentioned. Havoline XLC is an example 

of a product that can last much longer than any other 

type of antifreeze product in the market. 

Technologies having to do with monitoring and servicing 

include a series of used-oil analysis and maintenance monitoring 

programs such as OilCheck, TexCheck, and Computex. 

These tools not only provide immediate assistance to 

the customer regarding lubricant condition but also serve as 

a guide to reach the final goal—cost reduction of lubrication. 

If you add to these the experience and expertise required 

(technologies are not stand alone tools) by highly 

trained professionals, the result is high-quality Technical 

Consulting which each Aegean customer can enjoy. 

In terms of the future, it is really hard to predict since 

OEM requirements dictate technology upgrading. It appears, 

however, that we are moving to lower consumption 

of more expensive lubricants supported by much more sophisticated 

programs, resulting in an overall cost reduction 

in lubrication. 

What kinds of incentive programs do you offer station owners and 

how do you keep the owners abreast of product news 

Our team directly cooperates with Aegean Sales Representatives 

to provide customers with updates on our products and 

services. We identify market needs and create promotional 

programs according to our marketing plan. Of course I can 

not reveal our plans, but there are promotions designed to 

serve the needs of all intermediaries, the retailer, and the end 

user. Last March, for example, we successfully launched a 

promotional campaign primarily targeted at retailers that 

provided incentives to the gas station owner to introduce our 

high quality engine oils to customers. I have to say this 

CLEAN SYSTEM ADDITIVE promotion was a success, 

and we will create more this year. As I said, we have a strong 

cooperation with Aegean Sales Reps. We exchange thoughts 

and ideas and I'd say we have prospects for a bright future. 

What is your "Eco response" in Greece What programs do you 

have in place to ensure that environmental protection is part of 

your corporate culture 

Texaco Greece, as part of ChevronTexaco Global Lubricants, 

fully conforms with the Corporate HES (Health, 

Environment, Safety) policy. This is implemented through 

an integrated Management System in compliance with ISO 

14001 standards and Corporate Operational Excellence 

System Requirements. 

"Aegean has in hand a strong competitive 

advantage over other Greek companies 

and can face multinational competitors." 

Apart from operational specifications, separate HES 

objectives and targets are set at the beginning of each year, 

and are implemented through "environmental or safety programs" 

in which resources and responsibilities become allocated 

and monitored through the year. This process is a 

prescribed cycle of actions integrally linked to the business 

planning process. Our Business Unit accomplished several 

eco-programs the last year: 

● Monitoring groundwater pollution 

● Construction of a new wastewater treatment unit for 

reaching effluent composition standards of ChevronTexaco, 

which are far more strict than Greek law requires 

● Management and disposal of every waste stream of the 

plant, according to the requirements of ChevronTexaco 

policy and European Standards 

● Launch of a paper recycling scheme for both plant and 

office paper streams 

● Launch of a battery recycling scheme 

Nowadays, we are in the middle of a project to initiate two 

recycling schemes for our customers, one for used-oils and 

one for used-packaging. Every good idea that can lead us 

one more step forward is included in our yearly programs. 

This drive for continual environmental improvement is not 

an ad-hoc action. Texaco Greece wants to lead the world in 

safety, environment, health, reliability, and efficiency 

through the use of robust processes. We are committed to 

creating superior value in these fields and we strive to show 

that in our everyday business. 


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 

During the last few years the competition 

in the market has become far more 

intense. One main reason is that customers 

are becoming better informed 

and are demanding higher quality products 

and service. In addition, customers 

want service stations that are attractive, 

clean, and pleasant. 

Another primary characteristic of the 

market is that during the last five years 

multinational companies have been losing 

market share and domestic companies 

have been gaining market share. In 

1998 multinationals had 44% of the retail 

market whereas today they have 

35.5% and the market share of Greek 

companies has increased from 56% to 

64.5%. So we have seen a shift by customers 

toward Greek companies for the 

reason that Greek companies offer the 

same product at a more attractive price. 

Has the market been growing 

Yes. For instance, during 2002, there 

was a growth of 4.3% in domestic sales. 

At the same time, Aegean grew by 

25.6%, the largest increase in sales in the 

country by any company. And, first 

quarter results indicate that this trend is 

continuing into 2003. This is in a market 

where there are 20 companies competing 

for the loyalty of domestic consumers. 

"I believe that Aegean will 

continue to lead the growth 

rate by far, with a rate 

between 20% and 25%." 

How do you view the future of petroleum 

sales in the domestic market 

Indicators show there will be a continued 

growth in the market and as customers 

see an improvement in service 

and quality by Greek companies, with 

the understanding that the quality of 

all petrol is essentially the same, will 

show a preference for Greek brands. 

The market should grow by just slightly 

less than it did in 2002, let's say 

around 3%-3.5%, but I believe that 

Aegean will continue to lead the 

growth rate by far, with a rate between 

20% and 25%. Aegean's network continues 

to grow and should include well 

over 300 stations by the end of the 

year. Primarily, we are now expanding 

our network in the south— in Attiki, 

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 inspection 

van. What is the function of the van 


The new van initiative is aimed at guaranteeing 

the quality of our product and 

services. The van is a mobile inspection 

unit operated by a highly qualified 

technician. Without warning, the van 

visits stations in our network and analyzes 

a station's fuel on the spot to determine 

if it has been altered in any 

way. In this way, Aegean continually 

monitors its fuel to ensure that fuel 

tampered with from any source is not 

sold at Aegean stations. 

If the fuel is found to be as it should, a 

70 

60 

50 

40 

30 

written certificate is issued. If the fuel is 

found to have qualities outside Aegean's 

specifications, it is immediately replaced, 

the reasons are investigated, and 

any infractions are dealt with in the 

strictest way. All measures are taken to 

ensure that the reputation of the company 

is maintained and that further infractions 

are prevented. 

This program is one that we are very 

proud of since it strongly supports the 

three pillars of Aegean's credo: low 

prices, aesthetic superiority, and quality 

Retail Market Share: Greek and Foreign Companies 

56,1 

43,9 

58,2 

41,8 

1998 1999 2000 2001 2002 

GREEK COMPANIES 

60,6 

39,4 

63,9 

36,1 

FOREIGN COMPANIES 

 

64,5 

35,5 

"The van is a mobile 

inspection unit that visits 

stations in our network and 

analyzes a station's fuel 

on the spot." 

of services and products. Aegean will 

continue to initiate innovative projects 

that ensure we maintain the highest 

standards in customer service, quality 

control, and environmental protection. 

Konstantinos Poursanidis 

Domestic Market Manager 

Konstantinos Poursanidis heads the 

domestic market operations at AEGEAN. 

Mr. Poursanidis studied business management 

and received his university 

degree from the University of Piraeus. 

He has been active in the oil sector for 

25 years. He spent 23 years at Texaco 

and a year and a half at Shell. Since 

April 2002 he has been at Aegean. 

His primary responsibilities 

include the 

retail station network, 

programming 

fuels from the 

refineries, and 

negotiating with 

the government. 


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 

350 

10/3/03 

FUEL 

GASOIL 

300 

250 

PRICE (S/TN) 

200 

13/2/03 

5/5/03 

150 

100 

13/2/03 

50 

0 

2/1/2003 

16/1/2003 

30/1/2003 

13/2/2003 

27/2/2003 

13/3/2003 

27/3/2003 

10/4/2003 

24/4/2003 

8/5/2003 

22/5/2003 

5/6/2003 

19/6/2003 

3/7/2003 

17/7/2003 

DATE 

When prices continually rise, 

or fluctuate widely on a daily 

basis, the selling process 

becomes extremely challenging and dynamic. 

It is not easy to forecast the 

proper time to buy or sell, for either 

buyer or supplier, and maximize or even 

ensure profits in bunkers. 

It is vital, therefore, to be continuously 

informed and up-to-date with market 

events and conditions, to communicate 

with customers for an understanding 

of market levels, and to analyze price 

tendencies daily. Risk is a constant element, 

but being on top of the market is 

mandatory to minimize risk. 

The customer, an integral piece of 

the bunkering puzzle, must be carefully 

selected and serviced. The supplier 

must make well-informed decisions 

about to whom the product is 

sold and must assess numerous variables: 

credit line, payment terms, and 

Fuel 

13/02/03 178-185 $/MT 

25/04/03 123-127$/MT 

19/06/03 142-146$/MT 

Diesel 

05/02/03 270-275 $/MT 

10/03/03 370-375 $/MT 

19/03/03 230-235 $/MT 

the like. Likewise, customers do their 

analysis and take into account not 

only competitive prices but aspects 

such as quality, service, and established 

business relationships that 

come into play in the event of difficulties 

in supply. 

Aegean is dedicated to excellence 

and is committed to providing the 

highest level of customer service 

through its able and experienced 

staff. Moreover, Aegean can provide 

support to all its customers who purchase 

petroleum products in each 

port it serves. 

by Gregory Robolakis 


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. 

Many main engines are built 

that require a specific type 

of lubricant and the use of 

that lubricant is vital to the longevity 

of the engine. In other words, the 

quality of the fuel burned is of utmost 

importance to how well an engine 

performs and for how long. The type 

of fuel used—MGO, MDO, of MFO— 

is a primary criterion, due to the sulphur 

content, which differs depending 

on the category of the fuel. During 

combustion, SO 2 or SO 3 are created 

with the presence of water, and sulphuric 

acids emerge, which are highly 

corrosive. 

The essential characteristic that 

determines the correct lubricant in 

such cases is its alkalinity (TBN). This 

basically represents the capability of 

the lubricant to neutralize acids that 

develop during the duration of combustion. 

Depending on the type of engine, 

the type of fuel, and the percentage of 

sulphur, the following categories of 

lubricants should be used. 

The recommendations of the engine 

Gregory Robolakis 

Director of Marine Sales 

Gregory Robolakis earned a master’s 

degree in chemical engineering at the City 

University of New York. His career began 

at Shell Hellas in 1988 and in 1994 he 

took over as Director of Marine Sales of 

Agip Petroli Spa in the Athens offices. 

Mr. Robolakis joined 

Aegean as lubricants 

manager and fuels 

contract negotiator and 

is currently Director 

of Marine Sales (Fuels 

and Lubricants). 

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 

Lubricant M/E: 5-8 10-40 6-30 6-16 

TBN 

CL=70 

manufacturer should always be followed 

to determine the final choice of 

the lubricant. 

by Gregory Robolakis 

Shipping 

Modernizing the Aegean Fleet 

According to statements by Aegean Shipping, Aegean is closely monitoring 

the developments in the industry and the European Union regarding 

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 

acquired two double hulled vessels several months ago which it 

intends to use in its bunkering operations and it is now looking at 

other double hulled vessels to purchase. 

Recently Aegean acquired the Mexican-flagged ANA HUAC, a 

30,000 DWT double side vessel that it intends to convert into a 

double-double hull. This vessel will be used to service the contracts 

Aegean has in the EU. During the last several months the company has 

been rejuvenating its fleet with the purchase of other vessels including 

two OMI tankers from the United States and at the same time has 

been selling older vessels. 

As Aegean continues to reorganize its fleet it is seeking to expand 

on the bigger side with the purchase of two 80,000-100,000 ton 

Aframax vessels. 

SPRING 2003 AEGEAN NEWS 21

AGENCY 

Aegean Agency 

Signs New Contract 

Aegean Agency has signed a 

contract with the National 

Gas Company to supply ships 

that deliver natural gas in Greece, further 

strengthening its position in general 

shipping services and ship chandelling 

services in Greece. 

Aegean Agency supplies services to 

ships in all Greek ports as well as to ships 

that harbor in the port of Gibraltar. 

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 loading 

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- 

TERTANKO. Mr. Firppis says that 

Aegean constantly strives to improve 

the quality of services to its customers 

and at the same time increase its customer 

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. 


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. 

Hellenic Slops S.A. is Greece's 

top company that collects, 

transports, and treats oily 

waste waters, sewage, and toxic and 

hazardous ship-generated wastes, as 

well as wastes originating from landbased 

industrial units. Hellenic Slops, 

based in Piraeus, has installations in 

ports throughout Greece and is able to 

service any region that needs waste 

management. 

According to Managing Director 

Panagiotis Stamatogiannis, the company 

treats liquid wastes and residues 

(slops) from vessels calling at Piraeus, 

Elefsis, Patras, Corfu, Souda Bay, 

Alexandroupolis, Igoumenitsa and 

Kavala, as well as other ports and does 

so in full compliance of EU legislation 

as well as according to the standards of 

ISO 9002 and 14001. 

Mr. Stamatogiannis says "We operate 

a variety of facilities that ensure all 

waste is treated promptly and completely. 

We have dedicated tankers, barges, 

auxiliary vessels, and tank trucks to 

collect residues that are transferred to 

state-of-the-art treatment facilities. 

Hazardous waste is treated with the utmost 

concern for safety of personnel and 

the environment, and we are fully licensed 

to deal in such materials. Upon 

delivery, we provide a certificate of lawful 

handling." 

Ship generated waste, such as oily 

tank washings, fuel residues, and oily 

bilge waters are transferred to SLOPS 

X, the company's floating treatment 

facility. Wastewater and sewage is 

treated in the wastewater biological 

treatment plant. 

The SLOPS X has a total storage 

capacity of 52,000m 3 and can process 

up to 700m 3 per hour, including heavy 

viscous liquids. The SLOPS X also has 

tank cleaning services on board and a 

fully-equipped oil spill combating 

station with oil containment booms, 

skimming systems, oil sorbents and 

absorbents. 

In addition to servicing vessels at sea, 

Hellenic Slops handles waste at land 

units for the Public Power Corporation 

(DEH), Skaramangas Shipyards, Elefsis 

Shipyards, Syros Shipyards, Cronos 

Glassworks, and Coca-Cola and other 

companies and organizations. 

Hellenic Slops is a member of 

HELMEPA, EUROSHORE, and 

IAPH. 

Panagiotis Stamatogiannis 

Managing Director 

Panagiotis Stamatogiannis has been 

Managing Director of Hellenic Slops for 

eight years and coordinates the efforts 

of all employees to make the company 

the frontrunner in the protection of 

Greece’s marine 

environment and 

to provide services 

in harbors 

throughout the 

country. 

For more Information 

contact Panagiotis Stamatogiannis at 

Hellenic Slops: info@slops.gr/ www.slops.gr 


AEGEAN PEOPLE 

Making Dreams Come True 

A Studied Approach 

Efstratios Panagiotokopoulos, 

who has been working at 

Aegean's accounting department 

since 2001, in June completed his 

first year of an MBA program at the 

University of Piraeus, where he is concentrating 

in finance and accounting. 

Eight hours of work followed by four 

hours of classes has been the regular 

schedule of Efstratios throughout the 

past year, a demanding but not unpleasant 

schedule for the 23-year old 

Athens native who would eventually 

like to earn a Ph.D. degree. 

"Aegean is helping finance a part of 

my studies and that helps a lot. It also 

demonstrates the positive attitude the 

company has toward its young employees 

and toward education." 

"The supportive and positive environment at Aegean has 

helped me develop personally and professionally. I am 

able to initiate projects and my ideas are received openly, 

something that has been a valuable experience. Aegean is 

helping finance a part of my studies and that helps a lot." 

Determined to be a Doctor 

Efstratios also has a positive attitude 

toward education. He earned his 

BA in economics in 2001 (graduating 

One of the best sayings we have, 

"It's never too late," is often at 

the heart of success. For 

Roula Kakkou, a secretary at Aegean 

since 1995, time appears not an obstacle, 

but rather an ally. After the native 

of Nikea completed her studies at 

the Technical Institute of Athens 

(TEI) with a major in Public Health, 

she took the rigorous exams for medical 

school. Roula, who is married, had 

given birth to her first child just 

months before taking the exams. Nevertheless, 

she passed the entrance exams 

and was accepted to the medical 

school at the University of Patras. 

"I always wanted to be a doctor, and 

am determined to complete my medical 

studies, regardless of any difficulties. 

Since Patras is not very convenient 

for me, I have applied for a 

transfer to medical school in Athens 

and hope to begin my studies as soon 

as possible." Roula would like to study 

pediatrics and is undeterred by the 

four years of study ahead of her. " I 

look forward to attending medical 

school and am very appreciative of the 

support I have received from Aegean. 

The company has allowed me to be 

flexible with my work hours so that I 

could attend classes and prepare for 

the exams." 

For Roula, making time an ally has 

been the best strategy for success and 

one that would serve all of us well. 

3rd in his class) and has received numerous 

scholarships, including one for 

a semester at the University of 

Osuabrueck in Germany. In addition 

to being a native speaker of Italian 

and Greek, Efstratios is fluent in 

English and German. He hopes to 

pursue an MSc in Decision Science at 

the Economic University of Athens 

and hopes his training will lead to a 

successful career at Aegean. 

"The supportive and positive environment 

at Aegean has helped me develop 

personally and professionally. I 

am able to initiate projects and my ideas 

are received openly, something that has 

been a valuable experience." 

In his "spare" time, Efstratios enjoys 

basketball, baseball, swimming, and 

traveling. 


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 "30 th Kilometer" Aegean 

24 hours a day, seven days a week 

Overlooking the bay of Elefsina in 

Loutro Pyrgos at the 30th kilometer 

of the Athens-Corinth 

National Highway, Mr. Tragoumanidis's 

Aegean "operation" today employs more 

than 30 staff—14 at the gas station, 12 

in the mini market and cafeteria, and 

four in the accounting office. Sitting on 

15 stremmata (5 acres), the "30th Kilometer" 

Aegean, as it is called, is a hive of 

activity, with cars, trucks, and motorcycles 

constantly pulling up to the pumps 

as they leave greater Athens for trips to 

Patras, Sparta, Tripoli, Nafplio, Kalamata 

and all destinations in the Peloponnese 

and western Greece. "On Fridays 

and Saturdays, it is amazing to see the 

number of customers who stop at the 

station. We have thousands and thousands 

of customers each week. In fact, 

our station is the largest in Greece in 

terms of volume of gas pumped," says 

Mr. Tragoumanidis, who has been in the 

business for 14 years. 

The station offers multiple pumps 

for full and efficient service and has a 

team of young men that quickly respond 

to the needs of each customer, 

24-hours a day, seven days a week, 

365 days a year. Drivers can have an 

oil change or a car wash and relax in 

the large cafeteria/snack bar with hot 

or cold refreshments including sandwiches 

and toasts. The mini market 

carries a wide range of necessities and 

small gift items, as well as toys for tots. 

Mr. Tragoumanidis wife is an active 

part of the station management and his 

daughter Toula is becoming general 

manager of all operations. "The business 

is our life and we all do our best 

to make it the best. All of us working 

together is a great joy and source of 

satisfaction." 

According to Mr. Tragoumanidis, 

"Our relationship with Aegean is excellent. 

It is based on friendship, but the 

most important characteristic of our 

business dealings is the mutual respect 

that we have for each other. I see that Jacob 

Melissanidis and the entire team at 

Aegean look after our needs and I support 

the company every way that I can." 

"The station offers multiple pumps for full and efficient 

service and has a team of young men that quickly respond 

to the needs of each customer, 24 hours a day, seven days 

a week, 365 days a year." 

Mr. Tragoumanidis has built a topof-the-line 

business enterprise but is 

eager to do more. In September, he will 

renovate the entire station so that his 

customers will enjoy the best possible 

service of any gas station in Greece. 

Business is always on the increase, and 

in the future he may build a hotel on the 

land above the station, offering a unique 

combination of services at the "30th 

Kilometer" Aegean. 


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. 

¡ikos Christodoulakis | Minister of Economy 

After years of discussions, a solution 

was found that establishes 

a tax framework in 

which minimum rates of tax apply on 

fuel. The objective of this framework is 

to save energy and to protect the environment 

without creating excessive tax 

burdens that will affect the competitiveness 

of the industry. 

The framework was one of the primary 

concerns of the economic policy 

promoted by the Ministry of Finance 

and Economy in the six-month period 

of the Greek presidency, and was presented 

by Nikos Christodoulakis, 

Minister of Economy. 

Based on the proposed compromise, 

which the Greek presidency put 

forward and was adopted by the remaining 

member countries, the imposition 

of fuel tax will increase gradually 

over the next few years, so that the 

increase in fuel prices does not create 

problems in production or consumption. 

Greece has in fact ensured a 

transitional period until 2010 in order 

to adapt to the new plan. 

Other issues that the Ministry of 

Finance dealt with in the six-month 

period of the Greek presidency were: 

Taxation on Savings 

Putting into effect the community directive 

on charging tax on deposits 

that have "emmigrated" to tax havens 

in Europe is estimated to yield potentially 

ú300 million of profit annually 

to the Greek economy. The directive 

anticipates that all member-states will 

automatically exchange information, 

which will be gathered by the banking 

institutions where deposits are made, 

and transmitted to the relevant authorities 

of member states. Owing to 

banking confidentiality, Austria, Belgium, 

Luxembourg, and third-world 

countries will put the directive of retaining 

taxes (up to 35%) into effect 

during the transitional period. The 

investor’s country of residence will 

collect 75% of the income from this 

tax. The objective of this directive is 

to crack down on tax evasion and to 

increase competitiveness in the money 

markets of the Union. The solution 

was reached after tough negotiations 

between the Greek presidency and 

Luxembourg and Austria, who reacted 

strongly to such measures, while similar 

reactions came from countries 

outside the EU, including Switzerland. 

The directive will apply from 

1/1/2005, and Greece and Portugal 

have exercised the right to a transitional 

period of 8 years. 

The Eurogroup & Budget Policies 

After negotiations lasting several 

months, an agreement was reached regarding 

the need to observe the Stability 

Pact, while at the same time flexibility 

(circularly adapted deficit, depending 

on a county's economic situation) 

was promoted. The agreement 

anticipates that in periods of an economic 

boom, it is the responsibility of 

member-states to create margins in 

their budget policy and to follow a 

more relaxed budgetary policy in periods 

of a slow-down, without, however, 

exceeding a deficit of 3%. The need for 

budgetary discipline becomes even 

more crucial given the fact that most 


"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 

the problem of increased social security 

expenses due to an ageing population. 

Governing Lines 

in Economic Policy 

The 15 member states decided to give 

weight to policies focusing on a more 

competitive, dynamic, and economic 

information base, to boost competition 

in the markets of goods and services. 

The states also decided to emphasize 

reforms in the job market and to review 

policies of the social service systems. 

Regional Policy 

The planning and the framework of 

the Fourth Community Support program 

were also initiated in the sixmonth 

period of the Greek presidency. 

Greece is expected to collect a significant 

part of its funds from this new 

package and the financing will begin 

in 2007-2008. 

Financial Markets 

Steps were taken for the faster unification 

of European Stock markets. The 

economic and political uncertainty of 

the last few months highlighted more 

than ever the need for a much faster 

pace in the unification of European 

capital markets, so that transparency 

of transactions is also improved. 

An important parameter contributing 

to unification was the gradual 

application, since 1999, of the 

Action Plan for Financial Services. 

According to recent studies of the 

European Committee, the procurement 

of financial services is expected 

to yield significant profits in all sectors 

of economic activity. In all countries, 

calculations forecast an increase 

of 1.1% in GNP, of 0.5% in employment, 

of 6% in investments, and of 

0.8% in private consumption. Business 

profits will be generated as much 

from the reduction of transaction 

costs as from financial costs, and also 

from the increase in the variety of financial 

products available. 

The History of "Green" Tax 

Discussions on charging a "green tax" 

in member-states of the EU go back 

many years. Until today, each country 

followed its own policy on the issue. In 

fact, 11 European countries have 

been charging tax to industries that 

pollute the environment, in addition 

to a fuel tax, while in industries that 

used ‘clean’ forms of energy, employer 

contributions and other taxes were 

decreased accordingly. 

In Greece—where in 1992 the 

"taliro" (five cents) on fuel was 

charged in order to contribute to an 

environmental fund—both members 

of parliament and major social institutions 

(such as the National Workers 

Union of Greece) expressed fears of 

the consequences that this measure 

might have on the economy. "A measure 

that can have a very positive impact 

on the environment should not 

damage the economy or society," they 

stressed. Minister Christodoulakis has 

also stated in the past: "Whatever the 

changes, they must be supported by 

corresponding economic, social and 

environmental parameters." 

Experience has shown that the 

green tax in some countries was introduced 

with greater success (as in 

the Scandinavian countries and in 

Holland), whereas in others there were 

significant consequences. In Germany, 

for example, the imposition of 

the green tax in 1999 led to fuel price 

doubling, which significantly affected 

people with lower incomes. 

Among the countries that have imposed 

a fuel tax on motorists and taxes 

on energy consumption from 

sources that affect the environment 

are Norway, Finland, Sweden, Denmark, 

Spain, United Kingdom, Germany, 

and Italy. 


MARITIME TRADITIONS 

The Ancient Trireme 

Nimble Projectile of the Ancient Greek Navy 

In the 5 th 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. 

Built for speed and mobility, the 

trireme was 37 meters long 

with an overall beam of 5.5 

meters, had 170 oarsmen in 3 files on 

each side (top file 31; middle and bottom 

27; one man per oar), and was 

able to cover 184 nautical miles at 

about 7.5 knots. 

The vessel had a large square sail 

that allowed it to cruise at an estimated 

maximum of 14 knots in favorable 

weather conditions. Greece had many 

natural harbors, and some were used 

exclusively for triremes. 

The resources required to build and 

maintain a fleet were tremendous. Although 

it would not have fared very 

well in open seas because of its design 

(the bottom row of oars were only 18 

inches above the waterline), it was very 

fast and maneuverable for short, closein 

battles. The crew consisted of 203 

men: 170 oarsmen, 14 spearmen, 4 

archers, and 25 officers and sailors. 

Putting oarsmen over each other was 

an ingenious idea. This design feature 

raises the center of gravity that threatens 

the stability of a very low-draughted 

ship, while at the same time keeping 

the surface area inside the water at 

a minimum. In battle, the trireme was 

"In battle, the trireme was 

but a stripped-down waterborne 

projectile, propelled 

by human muscle power." 

but a stripped-down water-borne 

projectile, propelled by human muscle 

power. The most common engagement 

tactic by both sides was to get very 

close to the enemy ship and either ram 

it or brush along side it and snap all the 

oars off, leaving it disabled and at the 

mercy of the attacking ship. 

The trireme's design made it a formidable 

ramming device. When not 

used in battle, the trireme was used as 

a cargo ship. For reasons of economy, 

the number of oarsmen was kept to a 

minimum, providing more space for 

the cargo. When preparing for battle, 

all unnecessary weight—including the 

sail—was left ashore. 

In 480 BC, after the Persian army 

had conquered most of Greece and 

the Greek navy anchored in the Bay of 

Salamis was left to determine the fate 

of the nation. In the famous battle of 

Salamis, 1,200 Persian galleys were 

sent to deal with 450 Greek triremes. 

During the fierce engagement, more 

than 200 Persian ships were lost and 

many more captured and the Persians 

suffered a terrible defeat. 

After the victory of Salamis, 

Athens led the Delian League, an alliance 

of Greek states created to keep 

the Persians out of the Aegean. The 

Delian League was later to become 

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 

been dramatic in the previous three years. What are the most important 

trends to emerge in these industries that have an effect 

on businesspeople 

I would not call the changes in these industries dramatic. In 

the last few years, our country, as a member of a united Europe, 

has taken significant steps in the finance industry, integrating 

into the second largest economy in the world. The euro 

has become the chosen currency of exchange after the dollar 

by third world countries, countries that for the last 30 

years kept all their reserves in dollars. 

In the banking industry, competition has sparked improvement 

in all services, from those for large enterprises down to 

savings accounts and loans. I believe the Greek banking client 

has been deprived of neither products nor services, compared 

with other European citizens. 

September 11 th had very serious repercussions in the insurance 

industry on a global level and the consequences are evident 

in the sector's financial figures. I believe that the storm 

has passed and now we find ourselves well on the path toward 

recovery. After the attacks and the compensation that insurance 

companies paid, people became more aware of the advantages 

of being insured, which is ultimately a guarantee, 

despite the necessary increase in premiums. 

What sorts of products exist on the market today that small- and 

medium-size businesspeople can take advantage of—products 

that were not available a few years ago 

As I mentioned, banks have become more in tune to their 

clients' environment, anticipating their needs and offering 

tailor-made products. 

Investment services, previously unknown, appeared after 

the introduction of the euro. Bankassurance products are also 

considered a novelty. 

In the loan sector, small, medium, and large enterprises 

can chose between loans with fixed or variable repayment periods 

and interest rates, depending on financial needs and 

cash flows. Interest rates are based either on the institution’s 

own basic interest rate on borrowings, or on the interest rate 

of the European central bank, plus a margin depending on 

the credit rating of each client. 

How effective has the deregulation process been in the financial 

marketplace and what changes or improvements are still needed 

in your opinion 

Deregulation in the finance industry was immediate and, I 

would say, a precondition for our country to join the Eurozone. 

In a short period of time, Greece managed to adopt new 

EU measures. 

In the new deregulated economic environment, 

which sorts of advice do you believe businesspeople 

would be best to follow regarding financial 

planning and allocation of resources, especially 

with regard to business growth 

I believe that after the recent deregulation of 

consumer credit by the Bank of Greece, clients 

will show more interest in credit institutions 

increasing the limit of consumer loans. With 

regard to business growth, I believe that it is 

the right time for expansion, something supported 

by the latest reduction in interest rates 

by the U.S. Federal Reserve. The low cost of 

business loans helps to modernize outdated 

premises and to investing in new technology. 

The Aspis Group 

The Aspis Group of Companies 

is active in insurance, banking, 

investment, and real estate services. 

The Group is a key player in 

Greece and is developing a significant 

presence in other European 

markets. Aspis has been active for 

60 years and bases its continued 

success on extensive knowledge 

and experience. 

Many analysts believe that the energy sector 

will play a major role in global growth in the 

next decade. Do you believe energy markets will 

change dramatically during the next ten years 

I believe that your question is of vital importance, 

especially since the war in Iraq 

put the country back on the energy map, 

given the amount of oil that Iraq exports 

and the large oil reserves that it has. Considering 

the influence that oil has had on 

the international economy and on international 

politics over the last 40 years, I believe 

that energy will be one of the key issues 

that will play a major role and leave a 

mark on each new decade. 


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. 

30 

The main peninsula terminates in 

three smaller ones: Kassandra, 

Sithonia, and Mount Athos, better 

known among Greeks as Aghion 

Oros—the Holy Mountain. Halkidiki's 

landscape offers a stunning variety: long 

sandy beaches in Kalamaria, Nikiti, 

Toroni, and Ierissos; alternating rocks 

and trees in Sithonia; picturesque small 

bays in Vourvourou; and impressive rocks 

at the Capes of Kassandra, Sithonia and 

Athos. Halkidiki does not have any rivers, 

one of the reasons why the sea surrounding 

it is one of the clearest in Greece. 

Although the superb sandy beaches 

and aquamarine sea are the primary 

attractions for holidaymakers, the region 

offers many more things to see and do. 

The cave of Petralonas stretches for two 

kilometers and has impressive stalagmites 

and stalagmites. Excavators found 

a 260,000 year-old human skull in the 

cave, providing evidence of pre-historical 

habitation. 

Polygyros, the capital of the 

prefecture, is home of the archaeological 

museum, which 

AEGEAN NEWS SUMMER 2003 

houses finds from the peninsula’s ancient 

sites. It includes artifacts from the 

sanctuary of Zeus at Aphytis and from 

the ancient city of Akanthos, sites that 

are also worth a visit. 

Ancient Olynthos dates to the 7th 

century BC, and toward the end of the 

4th century BC was the capital of 

Halkidiki. The mosaics there are the 

oldest in Europe. In 348 BC, Philip II, 

King of Macedonia razed the city to the 

ground. Ancient Stageira was the birthplace 

of Aristotle, the most renowned 

philosopher of antiquity and tutor of 

Alexander the Great. The remains of 

the ancient city and its fortifications can 

still be admired. 

The famed peninsula of Mount 

Athos, home to 20 monasteries and 

1,700 monks, is a semi-autonomous 

state. It is shielded from modern civilization 

and technology, and offers a 

place of recluse and prayer to male 

travellers and pilgrims. 

Throughout the region, picturesque 

towns with Macedonian 

or monastic architecture 

buzz with activity. Visitors can find arts 

and crafts on sale, authentic tavernas, 

and warm hospitable people. Halkidiki 

has 12 thermal springs, two of which are 

recognized by the state for their therapeutic 

properties. 

Luxury hotel complexes such as Porto 

Karras, which hosted the EU summit 

meeting in June, 2003, offer casinos, 

horseback riding, golf, tennis, and watersport 

facilities, where one can swim, 

canoe, scuba-dive, and fish off the 

coast. Towns such as Arnaia, nestled on 

forest-covered mountain slopes, are an 

alternative to the coast, where visitors 

encounter rustic architecture, stores 

selling handmade crafts, and friendly 

Bed and Breakfast accommodations. 

For ªore Information 

Central administration (Polygyros) 

www.halkidiki.gov.gr 

23710 23192, 23710 39265 

Halkidiki Hotels Association 

www.halkidiki-hotels.gr 

e-mail: Halkidiki-assoc@the.forthnet.gr 

2310 429 020, 2310 429 022

A look that says 

THE AEGEAN IMAGE 

“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. 



AEGEAN is a diverse group of companies active in the energy and shipping 

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 sectors, 

is a leader in top-quality bunkering services, provides 

marine transport through its fleet of 26 tankers, and offers 

24/7 shipping services to trusted clients throughout 

the world. 

SERVICE AND PRICE 

Founded in 1990 by Dimitris Melissanidis, the 

company's Chairman, AEGEAN is committed to 

providing its customers with unmatched services 

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 international 

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 overall 

quality. The company is ISO 9002 accredited, 

its ships meet ISM standards, and AEGEAN's 

bunkering operations are on the FOBAS White 

List. AEGEAN employs more than 1,000 professionals 

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 presence 

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

Bunkering - Aegean Marine Petroleum Network Inc

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