President of the United Arab Emirates and United Arab Emirates signed an agreement to build the largest oil storage project in the United Arab Emirates.

Seoul (WAM)

HH Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi and deputy supreme commander of the Armed Forces of the United Arab Emirates, and Mon Monae, President of the Republic of Korea, today celebrated a ceremony at the Blue House to sign an agreement to award the ADNOC E to SK Engineering and Construction, South Korea, to build the world's largest single oil storage facility with a capacity of 42 million barrels of crude oil at the Fujairah emirate in east coast of 4.4 billion dirhams.
SK Engineering and Construction South Korea will carry out engineering, supplies and construction work to build three underground storage tanks, each with a capacity of 14 million barrels. With a total value of AED 4.4 billion, more than 50% of which will be invested in the local economy through the local value-added program of ADNOC.
Fujairah's Underground Oil Storage Facility strengthens the position of the United Arab Emirates as a reliable supplier of crude oil and will provide ADNOC with more flexibility to manage and improve the delivery schedule and support its presence and active participation in trade and commerce.
The role of ADNOC in the field of trade and supply, which contributes to development and development efforts, aims to improve Fujairah's position as a global hub for the storage and trading of oil and its products.
The agreement was signed by His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of State and Executive Director of the Abu Dhabi National Petroleum Company (ADNOC) and his Group of Companies, and Ge Hyun Ahn, President and CEO of SK Engineering & Construction. "In line with the guidelines of sensible leadership to ensure security of energy supply, we are very pleased to sign this agreement to build the largest underground oil storage facility in the Emirate of Fujairah," said Dr. Sultan Al Jaber. For our customers, solidify their position as a reliable supplier of oil, and supports our business ambitions, enhancing our ability to respond effectively and competitively to different energy market scenarios. "
"ADNOC has a proven track record of collaborating with Korean companies as partners in oil exploration, development and production concessions, contractors working on large projects in various fields and phases of the oil and gas industry and customers of crude oil and refined by-products. a strong strategic partnership between the United Arab Emirates and South Korea underscores the importance and capabilities of SK Engineering and Construction regarding the size, complexity and value of this facility. "
The Fujairah oil storage facility was started in 2018. The first phase of the project, which included the construction of an "inlet tunnel", was completed. When the project is completed in 2022, the facility will be one of the largest genre in the world, various types of crude oil, allowing UD more flexibility to export crude oil through the Fujairah oil terminal, strategically located in the Arabian Sea. "The work is well underway in our ADNOC project to build the world's largest solid rock storage facility in Fujairah, and we are committed to delivering high quality project services, contributing to the UAE's local economy. we continue to develop our expertise in energy storage. "
The engineering, procurement and construction contract was awarded following a highly competitive tender which included an accurate assessment of the contribution of the contract value to support the growth and diversification of the UAE's local economy through the ADNOC program to increase local value added.
With an inflow of approximately AED 2.2 billion to the local economy, this contract will provide a significant incentive to the country's products, services, manufacturing, assembly and infrastructure sectors, as well as additional job opportunities for private sector citizens.
Storage of Adnoc crude oil in a new underground installation
ADNOC signed a memorandum of understanding (MOU) with the Strategic Petroleum Reserves Company last November to study the storage of crude Adnoc crude at a new underground facility in Padur, Karnataka state, after ADNOC delivered the latest oil consignment . Total shipments of crude oil for storage at the facility, located in Mangalore, Karnataka, earlier this month. ADNOC also stores up to 6.29 million barrels of crude oil at the Keri oil terminal in Kagoshima, southern Japan, under an agreement with Japan's Ministry of Economy, Trade and Industry. In March 2018, ADNOC established two contracts to Samsung Engineering Co. Ltd. "The first contract aims to develop the flexibility of refinement of various types of crude oil, while the second contract for the project of restoration of energy and water in the Ruwais refinery owned by" ADNOC ".
In exploration, development and production in May 2015, GS Energy of South Korea received a 3% stake in the concession managed by ADNOC, Korea National Oil Corporation (KNOC) and GS Energy (40% Al Dhafra Petroleum , which is expected to start producing crude oil this year 2019. Korean companies are among the major importers of crude oil and refined products of ADNOC, including LPG, essential oils, naphtha and fuel oil.