Shaw Group wins Ruwais base oils deal

08 August 2010

State-refiner hopes to become an exporter of lubricants

Abu Dhabi Oil Refining Company (Takreer) has awarded the US’ Shaw Group the consultancy contract for the construction of a lubricants plant at Ruwais.

Shaw said in a 5 August statement that it will provide project management consultancy (PMC) services during the engineering, procurement and construction (EPC) phase of a base oils plant at the Ruwais Industrial Complex. The value of the deal was not disclosed.

Set for completion in 2013 the facility will process 300,000 barrels a day of heavy crude. It will produce a total of 600,000 tonnes a year (t/y) of base oils commonly used as industrial lubricants. These include 500,000 t/y of group III oils and 100,000 t/y of group II oils which are blended to make automobile lubricants.

South Korea’s Hyundai Engineering & Construction submitted the lowest bid for the EPC deal with a price of $471m in May. Second placed Samsung Engineering, also of South Korea submitted a price of $527m.

Abu Dhabi is currently a net importer of base oils and Takreer wants to use the plant to meet domestic demand and turn the emirate into a net exporter.

On 1 August Takreer approached design, management and technology contractors over plans to build more than $500m worth of new downstream facilities at the Ruwais refining complex. Firms interested in the engineering design and PMC contracts will submit bids for the deals in the fourth quarter of the year and Takreer wants to award the contract by the end of 2010 (MEED 2:8:10).

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