Takreer invests US$10 bln to expand and diversify production capacity

09-Nov-10

In the framework of its persistent efforts to develop the oil refining industry, provide a robust support to on-going strategic expansion of Takreer refineries and meet the future challenges of optimal integration with petrochemical industry, the Company inked this year agreement contracts worth more than US$10 bln to execute three huge expansion projects The grand expansion projects comply with Abu Dhabi National Oil Company (ADNOC)'s policy to develop the downstream industry in the country and meet future requirements for oil and gas. The projects include signing of agreements worth US$9.6 bln with four Korean Companies to expand oil refining capacity in Ruwais. The agreements imply Engineering, Procurement, Construction and Commissioning [EPC] works for five main packages of the Ruwais Refinery Expansion Project. The agreements were signed with SK Engineering & Construction Company for the Crude oil Distillation and Associated Downstream Units Package, GS Engineering & Construction Corporation for the Residue Fluid Catalytic Cracking Unit and Associated Refining Units and Marine Facilities Packages, Samsung Engineering Co. Ltd for the Offsite & Utilities Package and Daewoo Engineering & Construction Co. Ltd for the Tankage and Associated Interconnecting Piping Package. The Project will serve three main objectives continuously pursued by ADNOC as follows: 1. Satisfying the growing demand of high quality petroleum products in the local market as well as increasing ADNOC's presence in the International Market for finished products while meeting future stringent specifications. 2. Integration with the neighboring Petrochemical Industry through exporting 1.1 mln tpa of Propylene to the Borouge Olefins Complex in Ruwais. This will result in saving investment cost and reduce operating cost to the benefit of both operating companies. 3. Development and absorption of highly qualified UAE Nationals in both Project execution phase as well as in the subsequent operation of the plant. The Project will create opportunities for young UAE Nationals to learn new technologies through interaction with various disciplines of these Engineering Companies.