(EnergyAsia, April 28 2011, Thursday) — Abu Dhabi’s state-owned International Petroleum Investment Company (IPIC) said it will proceed with plans to invest US$3 billion in a 200,000 b/d oil refinery in Fujairah.

Expected to start up in 2016, the refinery will be linked by pipeline to a new deepwater terminal in Fujairah designed to handle and export UAE crudes such as Murban, Upper Zakum and Dubai. A number of financing options, including, but not limited to, project financing are under consideration, said IPC.

US engineering firm Shaw Stone & Webster was awarded the project management consultancy (PMC) contract for the refinery’s front end engineering and design phase in April. The project is now at the pre-front end engineering and design (pre-FEED) phase.

IPIC’s managing director, Khadem al Qubaisi, said the project is expected to create more than 750 job opportunities, with more than half for UAE nationals when it comes into operation.

IPIC said it is giving this project “high priority” as it “will create social and economic benefits for Fujairah as well as employment opportunities during the operational phase in the UAE.”