South Korean groups dominate bid list as delayed $3.5bn project progresses
The UAEs International Petroleum Investment Company (Ipic) has received bids from companies vying to construct its planned $3.5bn oil refinery in Fujairah.
Technical engineering, procurement and construction (EPC) proposals were submitted for the process units package (EPC1) on 10 July, according to companies close to the bidding process.
Firms bidding for the package are thought to include:
- GS Engineering & Construction (South Korea)
- Hyundai Engineering & Construction (South Korea)
- Hyundai Heavy Industries (South Korea)
- Samsung Engineering (South Korea)
- SK Engineering & Construction (South Korea)
According to reports, Daelim Industrial, another South Korean company prequalified to bid for the package, has withdrawn from the bidding process.
The submission of technical bids was significantly delayed, with Ipic extending the deadline several times after tendering the packages in September 2013.
The next stage is the submission of commercial proposals, but, according to one contractor, the commercial bid deadline has yet to be confirmed by Ipic.
Ipic 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 Fujairahs port. The EPC phase is split into two packages: process units; and offsites and utilities.
Frances Technip completed the front-end engineering and design (feed) phase of the scheme in 2013.
Ipic is also planning to build a petrochemicals complex connected to the refinery, but this is unlikely to progress until the main refining units are under construction.