Dubai's dependency on oil income dwindled due to decreasing production levels (Picture used for illustrative purposes only) Image Credit: Gulf News Archive

Abu Dhabi: The Abu Dhabi Oil Refining Company (Takreer) on Tuesday signed agreements worth $9.6 billion (Dh35.25 billion) with four Korean companies to expand its oil refining capacity in Ruwais by the end of 2013, WAM reported.

The agreements are for engineering, procurement, construction and commissioning [EPC] works for five main packages of the Ruwais refinery expansion project, which upon completion would increase Takreer's refining capacity by 417,000 barrels per day and nearly double its production of transportation fuels.

Takreer currently operates 490,000 barrels per day name plate refining capacity at its two sites in Abu Dhabi and Ruwais.

Agreements were signed with SK Engineering and Construction Company for the crude oil distillation and associated downstream units package; GS Engineering and Construction Corporation for the residue fluid catalytic cracking unit and associated refining units and marine facilities packages; Samsung Engineering Co. Ltd, for the offsite and utilities package; and Daewoo Engineering and Construction Co. Ltd for the tankage and associated interconnecting piping package.

The Ruwais Refinery Expansion Project is part of Adnoc's strategy to develop its downstream industry to meet future requirements.

Growing demand

It will help satisfy a growing demand for high quality petroleum products in the local market as well as boost Adnoc's presence in the international market for finished products.

"The plan to increase its refining capacity is in line with Abu Dhabi's plan to sell intermediate and finished goods to the rest of the world," Dalton Garis, Associate Professor of Economics and Petroleum Market Behaviour at the Petroleum Institute in Abu Dhabi, told Gulf News.