‘The study will focus on developing the optimum configuration for the refinery, which would have capacity of 500,000 barrels a day [b/d] and serve global markets,’ the announcement said. On completion of the study, a joint venture company to be owned 51:49 by IPIC and ConocoPhillips respectively, is to be formed to own and operate the facility.

Feedstock for the refinery is targeted to be sourced from the Upper Zakum field in Abu Dhabi, for which a detailed full-field development study is under way to increase production capacity to 750,000 b/d from 375,000
b/d. The feedstock will be supplied through a 350-kilometre main oil line (MOL). Tebodin of the Netherlands is due to complete by late September a conceptual study for the MOL.

The Fujairah refinery is the second agreement signed by ConocoPhillips in recent months in the Gulf. In May, it signed an MoU with Saudi Aramco to act as foreign partner on the 400,000-b/d grassroots export refinery planned at Yanbu on the Red Sea.

Aramco and ConocoPhillips are now carrying out a detailed evaluation of the proposed facility, which is estimated to cost $6,000 million.