UAE Key Projects and Business Highlights
With the completion of Habshan – Fujairah export pipeline, Abu Dhabi Company for Onshore Oil Operations (Adco) will be able to roughly half its total production directly on the Gulf of Oman to shunt the Strait of Hormuz.
This pipeline opens the way to a wave of capital expenditure in new projects to build giant storage capacities in Fujairah and a $3 billion refinery.
Abu Dhabi is planning to increase crude oil production from the actual 2.8 million b/d to 3.5 million b/d in 2018 and therefore needs to find to routes to secure its export.
To support this production growth, the Abu Dhabi National Oil Company (ADNOC) is planning major initiatives:
– Zakum Development Company (ZADCO) to spend $4.8 billion in the Upper Zakum project (UZ750)
– Abu Dhabi Marine Operating Company (Adma-Opco) is working on the $2 billion Umm al Lulu and Sarb project
The UAE are running short of gas, as many countries in the Gulf and is prepared to import it through the Fujairah terminal if necessary.
In cooperating with new comers such as Statoil, OMV and Wintershall, ADNOC is sending the signal to its actual partners BP, ExxonMobil, Partex, Shell, Total, that the selection of the international companies to be invited to bid on the renewal of the concessions in 2014 for the onshore fields and in 2018 for the offshore licenses will be decided in respect with the new technologies to be developed in the UAE.
Through all these investments, the UAE and Abu Dhabi especially, will continue to invest in the coming years to secure their market share on the crude oil global market and to reduce their reliance on crude oil price in developing an integrated upstream–downstream business model to benefit from the whole hydrocarbon value chain.
ADNOC to boost upstream projects over downstream
This downstream project came after a long period without major capital expenditure in the UAE since the Borealis and Abu Dhabi Polymers Company $3 billion Borouge expansion in 2010.
– In June 2012, the Engineering, procurement and construction (EPC) contract for the Ruwais refinery carbon black and delayed coker toSamsung Engineering from South Korea for $2.47 billion
ZADCO to award soon Upper Zakum 750 EPC-2 project
Abu Dhabi National Oil Company (ADNOC) and its partners, ExxonMobil and Japan Oil Development Company Ltd. (Jodco), are on the point to award the second engineering, procurement and construction contract (EPC-2) for ZADCO Upper Zakum 750 project.
ZADCO stands as the Zakum Development Company (ZADCO), a joint venture created in 1977 which currently is shared between:
Abu Dhabi prepares oil and gas concessions renewal
The first oil concessions covering all the Abu Dhabi territory were awarded in 1939 to the Trucial Coast Development Company in which the majors BP, ExxonMobil, Shell and Total were part of.
Fujairah targets 13.3 m cubic meters oil storage in 2015
In a context of increasing tension with the neighboring Iran, Fujairah in the UAE is developing one of the biggest oil storage
$3 billion Fujairah refinery, IPIC calls for bid on FEED
The Fujairah refinery, should have a capacity of 10.0 million t/y or 200,000 b/d.