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Takreer Signs $9.6 Billion Deals to Boost Capacity

ABU DHABI — The Abu Dhabi Oil Refining Company, known as Takreer, on Tuesday signed agreements worth $9.6 billion with four Korean companies to double its oil refining capacity.

The agreements were signed for engineering, procurement, construction and commissioning works for five main packages of the Ruwais Refinery Expansion Project, announced in November last year.

The expansion project will increase Takreer’s refining capacity of crude oil by 417,000 barrels per day and nearly double its production of transportation fuels; Gasoline, Jet and Diesel.

Takreer operates 490,000 barrels per day capacity at its two sites in Abu Dhabi and Ruwais.

The project is scheduled to be completed by the end of 2013.

Abu Dhabi produces 2.7 million barrels of oil a day and has awarded projects to boost its capicity to 3.5 million barrels per day by 2017.

Agreements were signed with SK Engineering and Construction Company for Crude Oil Distillation and Associated Downstream Units Package, GS Engineering and Construction Corporation for Residue Fluid Catalytic Cracking Unit, Associated Refining Units and Marine Facilities Packages.

Samsung Engineering Co. Ltd will provide its services for the Offsite and Utilities Package, while Daewoo Engineering and Construction Co. Ltd. will carry out work for the Tankage and Associated Interconnecting Piping Package.

The Ruwais Refinery Expansion Project is part of the Abu Dhabi National Oil Company’s strategy to develop its downstream industry to meet future requirement.

The project will serve three objectives of satisfying the growing demand of high quality petroleum products in the local market as well as increasing the company’s presence in the international market for finished products while meeting future stringent specifications. The project will achieve integration with the petrochemical industry by exporting 1.1 million tonnes of propylene to the Borouge Olefins Complex in Ruwais per year, resulting in saving investment cost and reduce operating cost to the benefit of both companies.

Measures to ensure safety of personnel and eliminate adverse impact to the environment has been given high priority in all aspects of project management.

haseeb@khaleejtimes.com