Media ININ Economy We Trust
Media-In Seoul, February 27 2019,
HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Mon Jai, President of the Republic of Korea, today held a ceremony at the Blue House for the signing of an agreement to award the engineering, procurement and construction contract between ADNOC and S To build the largest single project in the world to be built to store oil with a capacity of 42 million barrels of crude oil in the emirate of Fujairah on the east coast of the state worth 4.4 billion dirhams.
South Korea’s SK Engineering and Construction will carry out engineering, procurement and construction work to build three underground storage depots with 14 million barrels of storage capacity. The world’s largest engineering, procurement and construction contract is worth around a single underground crude oil storage With an estimated value of AED 4.4 billion. More than 50% of these will be in the local economy through ADNOC’s local value added program.
The Fujairah underground oil storage facility strengthens the UAE’s position as a reliable supplier of crude oil and will provide ADNOC with greater flexibility to manage and improve delivery schedule and support its presence and active participation in trade and trading. It also establishes ADNOC’s role as one of the major trading and supply partners contributing to the Development and development aimed at strengthening the position of the Emirate of Fujairah as a global center for the storage and trade of oil and its products. ”
“In line with the wise leadership’s directives to ensure the security of energy supply, we are delighted to sign this agreement to build the world’s largest single-scale oil storage project under the leadership of Abu Dhabi National Oil Company (ADNOC) and its Group of Companies,” said Dr. Sultan Al Jaber, “The ADNOC project allows ADNOC to continue to fulfill its commitments to its customers, solidify its position as a reliable supplier of oil and support our business ambitions by enhancing our ability to respond effectively and competitively to various energy market scenarios.”
“ADNOC has a proven record of success in collaborating with Korean companies as partners in oil exploration, development and production concessions, contractors working on major projects in various fields and phases of the oil and gas sector, and customers for crude oil and refined derivatives. Strong ties between the UAE and South Korea and underscores the importance and capabilities of SK Engineering and Construction in relation to the size, complexity and value of the facility. ”
The Fujairah oil storage facility was launched in 2018 and the first phase of the project, which included the construction of an “entry tunnel”, was completed. The project will be completed in 2022. The facility will be one of the largest facilities of its kind in the world and is capable of storing three Various types of crude oil, allowing ADNOC to be more flexible to export crude through the Fujairah oil terminal, strategically located on the Arabian Sea.
With an inflow of approximately AED 2.2 billion to the local economy, this contract will provide a significant incentive for the products, services, manufacturing, assembly and infrastructure sectors in the country, as well as additional employment opportunities for citizens in the private sector.
