Monday, Jan 09, 2012
--Pipeline to be operational by May or June, says Hamli
--Has capacity to transport 1.5-1.8 million barrels a day
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ABU DHABI (Zawya Dow Jones)--United Arab Emirates Oil Minister Mohamed Bin Dhaen Al Hamli said Monday he expects the crude pipeline that would allow U.A.E.'s oil to be exported via the emirate of Fujairah bypassing the strategic Strait of Hormuz, to be operational within six months.
"The pipeline is almost complete but hopefully it will be operational within six months, by May or June," Al Hamli said. It has the capacity to transport between 1.5-1.8 million barrels a day, he added.
The $3.29 billion, 400-kilometer pipeline will enable Abu Dhabi, the largest U.A.E. sheikdom, to export as much as 70% of its crude from Fujairah, located outside the Persian Gulf on the Gulf of Oman, where tankers will be able to pick up the oil instead of sailing into the Persian Gulf via the Strait of Hormuz, the narrow waterway watched over by Iran. It is known as Abu Dhabi Crude Oil Pipeline, or Adcop, and is being built for the Abu Dhabi government investment firm International Petroleum Investment Co., or IPIC.
Iran has in recent days ratcheted up threats to close the Strait if the European Union goes through with an embargo on Iranian oil, the latest step to pressure Tehran to give up a nuclear program that the West suspects is aimed at securing atomic weapons.
Hamli said "the first tanker loaded will be in about six months time, ready for export," adding the project involves a lot of work as the pipeline has to be filled with crude and tested.
The Strait is one of the world's busiest tanker routes through which Persian Gulf oil producers ship their crude exports. About 20% of global consumption is being shipped through the route every day.
Hamli said the threat [of Iran closing the strait] has always existed but there was no certainty the passage would be closed. "Everything for us is running very smoothly, we are exporting our crude oil to all destinations," Hamli said.
-By Tahani Karrar-Lewsley, Dow Jones Newswires; +9714 446-1692; Tahani.Karrar@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
09-01-12 0830GMT
