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Image Credit: ADNOC

Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) on Wednesday signed a Dh4.4 billion deal with South Korea Engineering Construction (SKEC) company to build the world's largest crude oil storage facility in Fujairah with a capacity of 42 million barrels.

The signing of the agreement was witnessed by His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and the president of South Korea, according to a tweet by Abu Dhabi crown prince.

Adnoc has signed three framework agreements with Korean energy companies to explore upstream exploration and production opportunities, potential downstream investments and bunkering opportunities for both crude oil and liquefied natural gas (LNG), Adnoc said on Tuesday in a statement.

The agreements have been signed with the Korea Gas Corporation (Kogas), the world’s second largest buyer of LNG, which has conducted a feasibility study on LNG bunkering at Fujairah port, the Korea National Oil Company (Knoc) as well as GS Energy.

Knoc has a 30 per cent stake in Adnoc’s Al Dhafra Petroleum company and is seeking to increase oil storage in the Republic of Korea by 24 million barrels until 2025 and GS Energy, an independent Korean energy company has a 10 per cent stake in Al Dhafra Petroleum and 3 per cent stake in Adnoc Onshore.