Adnoc signs $1.2bn deal with South Korean firm to build world’s largest oil storage facility

Abu Dhabi National Oil Company (Adnoc) on February 27 signed a Dh4.4bn($1.2bn) deal with South Korea Engineering Construction (SKEC) company to build the world’s largest crude oil storage facility in Fujairah with a capacity of 42m 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.

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 February 26 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% stake in Adnoc’s Al Dhafra Petroleum company and is seeking to increase oil storage in the Republic of Korea by 24m barrels until 2025 and GS Energy, an independent Korean energy company has a 10% stake in Al Dhafra Petroleum and 3% stake in Adnoc Onshore.

This edited article first appeared in Gulf Business.

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