ABU DHABI - The Abu Dhabi Oil Refining Sector.

Abu Dhabi has a major oil refining sector which can process up to 571,000 b/d of crude oils and condensates, and the within capacity Abu Dhabi is eventually to exceed 870,000 b/d. It is producing green fuels, consisting of unleaded gasoline and very low sulphur gasoil. The emirate has two refining complexes, one on Umm al-Nar island with a nameplate capacity of 85,000 b/d now operating 90,000 b/d and one at Ruwais with a capacity of 481,000 b/d. Both are operated by the Abu Dhabi Oil Refining Co. (Takreer), a unit of state-owned Abu Dhabi National Oil Co. (ADNOC).

Takreer has put in place measures that have led to control of flaring to yield savings to the tune of Dh7.3m annually. The Ruwais refinery has four elevated flares, one each for hydroskimmer, hydrocracker, and condensate units of 211 and 411 (see background in Vol. 64, down2AbuDrefPetchJan10-05).

Takreer is launching a pre-feasibility study for a 300,000 b/d plant at Ruwais. It will be a greenfield refinery. Takreer has added isomerisation, reformer and hydrotreater units at its Ruwais refinery to produce low-sulphur gasoline and gasoil. It plans another upgrade to boost its gasoline yield by another 30,000 b/d. The International Petroleum Investment Co. (IPIC) is launching a 500,000 b/d export refinery in Fujairah as a JV with ConocoPhillips to be decided in 2007.

ADNOC for Distribution (ADNOC-FOD) buys its oil products from Takreer and retails them in Abu Dhabi and the northern emirates. Its trades include lubricants, blended in its facilities at Umm al-Nar, near Abu Dhabi City. ADNOC-FOD gasoline, diesel and lubricants are exported to regional markets. The volume of LPG produced in the emirate and mostly exported from the Gasco terminal at Ruwais is to reach 12m t/y by end-2007. Liquid and granulated sulphur is exported from Ruwais.

ADNOC-FOD is poised enter the Saudi market with a major plan which will see a number of gasoline stations across the kingdom. ADNOC-FOD has signed a memorandum of understanding (MoU) in Riyadh with Saudi-based al-Olaibi Co. to extend its services in the country. Gulf News on Dec. 29 reported ADNOC-FOD Managing Director Jamal al-Dhareef as saying the MoU will enable the company to sell and distribute its advanced products and services in one of the biggest markets in the region. He said: "We will operate state-of-the-art...[ADNOC-FOD] petrol stations in the growing Saudi market. This move comes with the company's expansion plans to develop, increase its services' quality, and extend its stations to new local and regional locations".

The move comes at a time when Saudi Arabia plans to open up the country's economy to attract increasing foreign direct investment (FDI) as well as more tourists into the country. ADNOC-FOD's entry into the Saudi market will help to serve a growing regional tourism industry which is flourishing across the GCC area.

Dhareef said: "We have completed the electronic linkage of ADNOC's smart pre-paid cards to be valid in Kuwait, Qatar, Oman and we prepare to extend the smart cards services in Saudi Arabia as well". Rashid al-Olaibi, managing director of al-Olaibi Co. who signed the MoU with Dhareef, said his company had many stations and strategic locations in the kingdom, adding: "We have strong relationships with the government authorities and a wide experience in retailing and distributing oil and petrochemicals products in the Saudi market". He said the company had many contracts with Saudi Aramco to supply gasoline, diesel, petrochemicals and lubricants produced by Saudi Aramco and other international or regional companies.

ADNOC-FOD, with its Saudi partner, will build a network of stations on the country's main roads, and on the international highway which links the GCC countries with Europe and regional countries. Al-Olaibi Co. has a fleet of 300 heavy trucks for distribution of fuel and petrochemicals. The company's annual sales exceeded one billion litres of fuel, lubricants, and petrochemicals in 2005. It has branches in Riyadh, Madina, Dammam and Qussaim.