IPIC, Tebodin To Study Habshan-Fujairah Pipeline

Saturday, Jul 22, 2006

DUBAI (Zawya Dow Jones)--Abu Dhabi-owned International Petroleum Investment Co. has given the go-head to Tebodin Middle East Ltd. to conduct a feasibility study for an oil pipeline linking the emirate's Habshan oil fields with the port of Fujairah, Gulf News reported.

The planned 350-kilometer pipeline will be funded by IPIC, which is 100% owned by the government of Abu Dhabi. No further details were disclosed.

On Wednesday, IPIC signed a deal with U.S. major ConocoPhillips (COP) to study the construction of a 500,000-barrel per day oil refinery in Fujairah, which is a major bunkering hub.

The refinery will be 51% owned by IPIC, with ConocoPhillips taking a 49% stake.

The UAE, which produces an average of 2.5 million bpd of oil, plans to increase its capacity to more than 3.5 million bpd in the next five years.

IPIC was established in 1984 to invest in the hydrocarbon and related sectors outside of the emirate of Abu Dhabi. Tebodin Middle East, formed in 1972, is based in Abu Dhabi.

Newspaper Web site: http://gulfnews.com

-By Salam Hafez, Dow Jones Newswires; +971 4 2235676; salam.hafez@dowjones.com

(END) Dow Jones Newswires

07-22-06 0040ET