Abu Dhabi Goes Ahead with Strategic Pipeline and Fujairah Projects

---

Researched by Industrial Info Resources (Sugar Land, Texas). Despite the possible withdrawal of joint venture partner ConocoPhillips (NYSE:COP) (Houston, Texas), Abu Dhabi’s International Petroleum Investment Company (IPIC) plans not only to go ahead with the new oil refinery and water treatment plant at Fujairah, but also plans to build a strategic pipeline to transport oil from Habshan in Abu Dhabi to Fujairah –a key bunkering hub for shipping departing from the Strait of Hormuz.

The UAE is the world’s sixth largest oil exporter and moves up to 2.4 million barrels per day (bpd) through the strait which can total up to 17 million barrels per day shipped through the strait by all Gulf producers. This total represents about 20% of the global oil supply and could come under pressure from Iran if the country is threatened in terms of the realpolitik of the region and its oil industry. Premiums are levied on oil shipped through the straits and the new pipeline would bypass the tense waterway and offer lower costs.

The project management services contract for the ADCOP pipeline has been awarded to ILF Consulting Engineers (Munich, Germany). The project involves the construction of an approximately 223 feet, 48-inch diameter pipeline and associated facilities with the capacity to transport 1.5 million bpd of crude oil. The project will also include storage and terminal facilities for crude export. IPIC plans to implement the pipeline project on a fast track basis and has issued Expression of Interest invitations to selected contractors for front end engineering design services and related survey contracts. ILF is also involved in the broad scope of the tender process for the Fujairah complex.

IPIC has stated that it intends to start construction work on the Fujairah complex in 2008 and is in discussions with other international companies, apart from ConocoPhillips, concerning participation in the project. IPIC, which is currently pursuing $10 billion global expansion plans, maintains that the project is viable even in the face of the rising costs, which have caused ConocoPhillips to pause.

View Project Report – 98500110

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.