IPIC to to build Abu Dhabi continues $3b refinery

Thursday, Apr 14, 2011

Gulf News

Abu Dhabi: Abu Dhabis International Petroleum Investment Company (Ipic) said yesterday it is proceeding with the implementation of a 200,000 barrel per day (bpd) refinery at Fujairah, at an estimated cost of $3 billion (Dh11.01 billion).

The project is currently in its pre-front end engineering and design phase (Pre-Feed), with project completion anticipated by mid-2016.

The refinery will have the capability to meet its own power requirements. In addition, power will be provided to the local grid.

The Fujairah refinery project is a strategic initiative of the government. The Fujairah refinery will be located near the new Abu Dhabi crude oil pipeline main oil terminal and the UAE deep water export terminals in Fujairah, and will be designed to process UAE crudes such as Murban, Upper Zakum and Dubai.

A number of financing options, including, but not limited to, project financing are under consideration, an Ipic statement said.

This is an exciting opportunity to combine Ipics financial strength and experience of existing portfolio of co mpanies in implementing this project. The refinery project in addition to being of strategic importance will create social and economic benefits for Fujairah and other nearby emirates as well as creating employment opportunities during the operational phase in the UAE, said IPICs Managing Director Khadem Al Qubaisi.

Reacting to the development, Kate Dourian, Middle East editor for Platts, told Gulf News that having a refinery in Fujairah makes sense as the emirate is an emerging oil export hub with a pipeline running from Abu Dhabi to Fujairah.

Jobs

Meanwhile, Ipic has announced that there are 400 job opportunities available for UAE nationals in its new refinery.

This is in line with the directives of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan.

By Himendra Mohan Kumar, Staff Reporter