By Al Edwards, Business Co-ordinator 
THE FINANCIAL GLEANER understands that the Shell Companies of Jamaica has made an offer to acquire local petroleum retailer, National Fuels and Lubricants (NFL) for a sum in excess of J$500 million.
NFL is owned and operated by Roy D'Cambre and consists of 21 gas stations. There are plans to open a further 5 stations by the end of this year. This will see new stations in Montpelier, Montego Bay, Toll Gate, Runaway Bay, Featherbed and Frankfield.
Roy D'Cambre's stations have managed to compete successfully against the multi-nationals such as Shell, Texaco and Esso by offering competitive prices at the pump.
For some time now Mr. D'Cambre has pondered whether to sell the company he built or expand his operations. Back in 2000, he had discussions with both Mobil and BP Amoco about a possible sale. He has opted for expansion choosing to decline Shell's offer.
Last year Mr. D'Cambre said in an interview with the Financial Gleaner: " The optimum number of gas stations for National is between 30 and 32. Once you go beyond that you are getting into marginal stations which will seriously reduce your average throughput per station. Any more than that figure will cause some overlap.
The National chain is expected to sell approximately 2 million gallons of petrol a month and generates yearly sales of roughly $2 billion by the end of this year. Shell's has 61 stations and its volume stands at approximately 18 million litres per month through its stations.
When asked why he didn't accept Shell's offer for NFL, Mr. D'Cambre said: "That particular offer you are referring to didn't interest me. We are currently expanding our number of stations and are selling high volumes of gas."
National would indeed be a prized asset for Shell in Jamaica as the multi-national seeks to expand its operations in the Latin American and the Caribbean region. To this end, Shell has purchased the Yubucoa refinery in Puerto Rico from the Sun Oil Company. The refinery has the capacity to process 75,000 barrels daily and will produce petrochemicals, gasolene, diesel, kerosene and bunker fuel.
The chairman of the Shell Companies of Jamaica was in Barbados on company business and therefore was unable to comment on the offer to acquire NFL, but he has said that Shell has been investing an average of $250 million annually over the last five years on new plant facilities and equipment.
Next year, National has plans to refurbish all its stations and bring them all to the standard of flagships Featherbed and Stanton Terrace.
Mr. D'Cambre holds the view that there should be no significant difference between his stations and those of the multinationals.
"We can add a further 300,000 gallons per month without building an additional station just by undergoing a refurbishment exercise. This project is estimated to cost approximately J$100 million. NFL is now carefully examining the prospect of leasing out its station operations rather like a franchise.
"I want hands on, dedicated people determined to see the stations making good money. It's all about good management. What I will do is hold these people to a certain amount per gallon and they cannot exceed that profit margin. I can manipulate the price by dropping what I take if any competition comes up. What people don't understand here is that volume equates to money."
There is speculation that French integrated oil giant TotalFinaElf is expressing an interest in entering the Jamaican petroleum retail market and that it is currently eyeing NFL with a view to take over its operations. Commenting on the prospect of Total entering the market, Mr. D'Cambre said: "Total is conducting exploratory talks in Jamaica and as a courtesy we have provided the French company with certain information about our operations."
