Commercial bids submitted for refinery

16 March 2015

Contracts expected to be awarded in late Q2 or Q3 for Fujairah refinery

  • Refinery located at UAE’s Gulf of Oman port
  • Both packages originally tendered in 2013
  • South Korean companies in for larger package

Abu Dhabi’s International Petroleum Investment Company (Ipic) is assessing bids for two packages on the planned new refinery in Fujairah, according to sources familiar with the project.

Companies submitted commercial proposals in early March for the engineering, procurement and construction (EPC) packages, covering the process units and the offsites and utilities (O&U) respectively.

The contracts are expected to be awarded either late in the second quarter or early in the third quarter of 2015 after Ipic has completed the assessment of the proposals.

Companies submitting commercial bids for the first package – the larger deal covering the refinery’s process units – are all based in South Korea and include GS Engineering & Construction and Samsung Engineering.

The submission of technical bids was significantly delayed, with Ipic extending the deadline several times after tendering the packages in September 2013.

The company is planning to build a 200,000 barrel-a-day (b/d) facility to meet rising demand for fuels in the UAE and enable the export of oil products from the port of Fujairah on the east coast of the country.

France’s Technip completed the front-end engineering and design (feed) phase of the scheme in 2013.

Ipic was established by the Abu Dhabi government with a mandate to invest globally in energy and energy-related industries. The company is also involved in the plan to build a liquefied natural gas (LNG) import terminal in Fujairah.

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