Abu Dhabi's IPIC suspends plans to set up refinery in Pakistan, to review Fujairah refinery project

13-Jan-09

Abu Dhabi government-owned International Petroleum Investment Company has delayed plans to set up the planned 250,000 bpd Khalifa Point refinery in Pakistan as it is faced with problems there that need to be discussed and fundamental issues resolved. IPIC is also reviewing its Fujairah refinery project - A planned US$6-7 bln refinery with capacity of 500,00 bpd in Fujairah, UAE. IPIC is reviewing options to change refinery configuration and make it smaller to cope with the current demand-supply situation. A 370 km (229.9 mile) crude oil pipeline from Abu Dhabi to Fujairah is on track for completion by early 2010 to carry 1.5 mln bpd of crude for export from Fujairah. The storage terminal at Fujairah will have capacity of up to 12 million barrels. The storage facilities will be leased to Abu Dhabi National Oil Company or be operated by IPIC with a tariff charged to ADNOC. IPIC's new joint venture company Chemaweyaat, in which IPIC has a 40% stake, plans to invest at least US$70 bln in petrochemicals in Abu Dhabi. In the first phase, US$20 bln will be invested and more than US$50 billion will be invested in the second and third phases. The other stake holders in Chemaweyaat are Abu Dhabi Investment Council with a 40% stake and ADNOC with a 20% stake. IPIC also plans to invest up to US$2 bln in the Caspian Sea region in various sectors and will involve MAN Ferrostaal in these projects. The company may increase its stake in Austrian energy firm OMV and Spain's Cepsa after finalising a deal to buy 70% of industrial services firm MAN Ferrostaal AG, part of German group MAN.