IPIC proceeds with plan for $3bn UAE refinery, gives engineering deal to Shaw
International Petroleum Investment Co. (IPIC) announced that it is proceeding with the implementation of a 200,000 bbl/day refinery at Fujairah, at an estimated cost of $3 billion.
The Fujairah refinery project is a strategic initiative of the United Arab Emirates (UAE) government, which recently awarded the project management consultancy (PMC) contract for the front-end engineering and design (FEED) phase of the refinery to Shaw Group subsidiary Stone & Webster.
The project is currently in its pre-FEED phase, with project completion anticipated to occur by mid-2016. IPIC is giving this project high priority and importance, it said.
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. It will be designed to process UAE crudes such as Murban, Upper Zakum and Dubai.
A number of financing options, including project financing, are under consideration, the company said.
The refinery is expected to create more than 750 job opportunities, out of which 375 to 400 will be for UAE nationals, the company said.
The refinery will have the capability to meet its own power requirements, in addition to providing power for the grid of the Northern Emirates, IPIC said.
“This is an exciting opportunity to combine IPIC's financial strength and experience of existing portfolio of companies in implementing this project,” said IPIC managing director Khadem Al Qubaisi .
“The refinery project, in addition to being of strategic importance, will create social and economic benefits for Fujairah and other Northern Emirates as well as creating employment opportunities during the operational phase in the UAE,” he added.
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