IPIC qualified bidders for Fujairah Refinery Phase-1

The Abu Dhabi-based International Petroleum Investment Company (IPIC) is preparing the call for tender for the engineering, procurement and construction (EPC) contract of the Fujairah Refinery Phase-1 in the United Arab Emirates (UAE).

Established in 1984 by Abu Dhabi Government , IPIC has the mission to support energy projects outside of the Abu Dhabi Emirate.

The goal is to provide the Abu Dhabi Emirate with reliable accesses to market abroad and with profitable return on capital invested.

In that respect IPIC is focusing on upstream, midstream and downstream projects that can generate synergies with Abu Dhabi Energy sector.

With the Fujairah Refinery, Abu Dhabi will get direct access to the Gulf of Oman, shunting the critical Strait of Hormuz.

With the Fujairah Refinery project, Abu Dhabi will meet a double target, to secure its export of crude oil as well as increasing the added value of its export is selling high added value hydrocarbons instead of crude oil.

In addition Fujairah will generate about 400 permanent jobs for UAE Nationals.

For these  reasons Abu Dhabi Government selected, through IPIC, Fujairah to build this large refinery and petrochemical complex.

Fujairah occupies a strategic position with its access to the Oman Gulf and because it benefits from the crude oil supply through the crude pipeline supplying the UAE Main Oil Terminal.

Technip completed Fujairah Refinery project FEED

The contracts for the project management consultancy (PMC) and front end engineering and design (FEED) of the Fujairah Refinery had been awarded to Stone and Webster in 2011, belonging to the Shaw Group at that time.

Since then Stone and Webster was acquired by Technip from France while the rest of Shaw Group activities were taken over by CB&I from USA.

In 2012, Stone and Webster– Technip completed the FEED work for the Fujairah Refinery.

From the FEED work the Fujairah Refinery should have a capacity of:

 – 200,000 barrels per day (b/d) of crude oil

 – 1.2 million tonnes per year (t/y) of polypropylene 

In addition and because of the geographical situation and power needs of the Fujairah Emirates, the Fujairah Refinery project will also include a power plant.

This power plant will supply the Fujairah Refinery and Petrochemical complex as well as the local electrical power grid.

Requiring $3.5 billion capital expenditure, IPIC is planning to implement the Fujairah Refinery project in two phases:

 – Phase-1 : Refinery and Power plant

 – Phase-2: Petrochemical complex

 Then IPIC and Stone and Webster – Technip have decided to organize the call for tender of the Fujairah Refinery in two packages:

 – EPC-1 will include the process units

 – EPC-2 will cover the infrastructures, offsites and utilities.

Six engineering companies have been qualified by IPIC for EPC contract of the Fujairah Refinery Phase-1.

They should submit the technical offer at the end of 2013 with the commercial offer to follow in first quarter 2014.

In targeting a final investment decision (FID) on second half 2014, IPIC is planning the first production of the Fujairah Refinery in 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer