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Downstream construction update

Hydrocarbon Engineering,

International Petroleum Investment Co.

Ipic is voicing plans to invest US$ 6.5 billion in to two refinery construction projects. The company is seeking to construct a US$ 3.5 billion, 200 000 bpd facility in Fujairah, UAE and a 230 000 bpd facility in Duqm, Oman. The latter facility is expected to cost US$ 6 billion to construct and Oman Oil may provide US$ 3 billion towards construction.


Tebodin has been chosen by the Qaiwan Group to perform basic and detailed engineering for phase 2 of the Bazian refinery expansion project. The facility is located in Kurdistan and the expansion consists of increasing storage capacity, constructing additional loading and unloading facilities, upgrading the electrical systems and upgrading instrumentation.

Persian Gulf

Iraq is pushing forward on plans to construct new refineries in the country as the government looks to increase processing capacity by 740 000 bpd. This is just part of a plan being adopted by the Persian Gulf to increase refining capacity across the board. At the moment, Iran’s plans are focusing on expanding and upgrading existing refining facilities.


A foundation laying ceremony will be held on 25th October to initiate the construction of a refinery in the Aliaga region, Izmir. The refinery is being built for the State Oil Company of Azerbaijan (SOCAR) and will be run in conjunction with Petkim. The first unit is expected to be online in 3 years time with the rest of the facility being completed and online by 2015. The plant is projected to have a capacity of 10 million tpy and cost approximately US$ 5 billion.


Uganda has announced that it will start oil refining in 2014. This news has come after a feasibility study into building a refinery in the country was completed and confirmed that the project would be worthwhile. There are plans to construct the facility in phases, starting with a 40 000 bpd unit before expanding the facility to 150 000 bpd by 2016. Plans to construct a refinery in the country began to develop after 2.5 billion bbls of oil were discovered along the border of Uganda with Congo.

Saudi Arabia

The newly expanded Onsan petrochemicals plant was officially declared open on 20th October. The S-Oil owned facility now has double the petrochemical production capacity. The expansion project cost approximately US$ 1.1 billion. The plant can now process 1.24 million tpy of paraxylene and 2.46 million tpy of benzene along with other products.

South Dakota

Hyperion Energy has said that it could be 2013 before ground is broken for the construction of a refinery planned for Union County begins. Hyperion was granted a changed in their air quality permit to allow this extension. The facility is now expected to be complete by the end of 2017.

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