Abu Dhabi Oil Refining Company (Takreer) has formally awarded construction contracts worth $5.2bn to South Korea’s SK Engineering & Construction and GS Engineering & Construction for the expansion of its Ruwais refinery on the Gulf coast.

On 26 October, the South Korean firms had entered the lowest bids for the refinery deals (MEED 26:10:09).

SK won the first contract, worth $2.1bn, to build a crude distillation unit and associated downstream units. GS won the second package, worth $3.1bn, to build a residual fluid catalytic cracker unit, according to a statement issued on 4 November by the official Emirates News Agency.

The crude distillation unit breaks down crude oil into components such as the petroleum product naphtha and the basic chemical benzene. The cracker breaks up heavier oil components into lighter and more valuable products.

Takreer plans to expand the capacity of its Ruwais refining complex from 417,000 barrels a day (b/d) to 817,000 b/d by the end of 2013.

Two other contracts on the project are out to tender: an offsites and utilities contract, and a marine facilities deal. Takreer asked international engineering firms to prepare final bids for the deals by 26 October, but delayed the date until 11 November after changes to the project’s design.

The offsites and utilities package covers the construction of the infrastructure required by Takreer to expand the refinery.

The winner of the marine facilities contract will build jetties and associated infrastructure at the Ruwais site.