ID :
70294
Tue, 07/14/2009 - 15:02
Auther :
Shortlink :
https://www.oananews.org//node/70294
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Two firms show interest in IPIC's Fujairah refinery
Abu Dhabi - July 14, 2009 (WAM) - Abu Dhabi's government-owned International Petroleum Investment Company (IPIC) is talking to two international companies that could operate and part-own the Fujairah oil refinery project, IPIC's managing director said on Monday.
IPIC is one of the vehicles used by Abu Dhabi to invest oil export revenues. Abu Dhabi pumps most of the oil produced in the UAE, the world's third-largest oil exporter.
"We are in touch with two well-known companies to operate and own a stake in the refinery," Khadem Al Qubaisi told Reuters. He declined to name the companies. IPIC would make a decision on whether to proceed with the refinery next year, he said.
US company ConocoPhillips was initially involved in the project but pulled out in 2007 as costs rose.
IPIC saw the project as potentially viable despite a fall in oil demand this year and last, Al Qubaisi said. In the longer term, demand would grow, he added.
"This may be a tough year but maybe four years from now it won't be negative," he said, when asked if falling demand had affected IPIC's plans for the project.
The refinery would likely have capacity to process between 150,000 and 200,000 barrels per day (bpd), he said. Initial plans were for a giant refinery of 500,000 bpd, but IPIC scaled that down to save money.
The estimated cost of the plant stood at between US$4 billion and US$5 billion, but was falling, he added. Energy project costs worldwide have dipped on lower prices for raw materials, labour and energy services due to the global economic downturn.
IPIC is one of the vehicles used by Abu Dhabi to invest oil export revenues. Abu Dhabi pumps most of the oil produced in the UAE, the world's third-largest oil exporter.
"We are in touch with two well-known companies to operate and own a stake in the refinery," Khadem Al Qubaisi told Reuters. He declined to name the companies. IPIC would make a decision on whether to proceed with the refinery next year, he said.
US company ConocoPhillips was initially involved in the project but pulled out in 2007 as costs rose.
IPIC saw the project as potentially viable despite a fall in oil demand this year and last, Al Qubaisi said. In the longer term, demand would grow, he added.
"This may be a tough year but maybe four years from now it won't be negative," he said, when asked if falling demand had affected IPIC's plans for the project.
The refinery would likely have capacity to process between 150,000 and 200,000 barrels per day (bpd), he said. Initial plans were for a giant refinery of 500,000 bpd, but IPIC scaled that down to save money.
The estimated cost of the plant stood at between US$4 billion and US$5 billion, but was falling, he added. Energy project costs worldwide have dipped on lower prices for raw materials, labour and energy services due to the global economic downturn.
