MEED reported that Abu Dhabi Oil Refining Company has formally awarded construction contracts worth USD 5.2 billion to South Korea’s SK Engineering & Construction and GS Engineering & Construction for the expansion of its Ruwais refinery on the Gulf coast.

According to a statement issued on November 4th 2009 by the official Emirates News Agency, on October 26th 2009, the South Korean firms had entered the lowest bids for the refinery deals. SK won the first contract worth USD 2.1 billion to build a crude distillation unit and associated downstream units. GS won the second package, worth USD 3.1 billion to build a residual fluid catalytic cracker unit.

The crude distillation unit breaks down crude oil into components such as the petroleum product naphtha and the basic chemical benzene. The cracker breaks up heavier oil components into lighter and more valuable products.

Takreer plans to expand the capacity of its Ruwais refining complex from 417,000 barrels per day to 817,000 barrels per day by the end of 2013.

Two other contracts on the project are out to tender: an off sites and utilities contract and a marine facilities deal. Takreer asked international engineering firms to prepare final bids for the deals by October 26th 2009 but delayed the date until November 11th 2009 after changes to the project’s design.

The off sites and utilities package covers the construction of the infrastructure required by Takreer to expand the refinery. The winner of the marine facilities contract will build jetties and associated infrastructure at the Ruwais site.

(Sourced from MEED)