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Tuesday, 02 December, 2008, 04:10 GMT | more >>

IPIC calls to Hormuz bypass hopefuls



By Upstream staff 

Abu Dhabi's International Petroleum Investment Company (IPIC) has invited six companies to bid for the engineering and design contract on an oil pipeline to bypass the Strait of Hormuz, industry sources said today.

Over 13 million barrels of crude per day - about 15% of global supply - flows from Gulf producers through the shipping chokepoint, according to the International Energy Agency.

Analysts fear Iran could seek to impede trade through the route if Western powers resort to military action in the row over Tehran's nuclear programme.

The 1.5 million bpd pipeline would allow the United Arab Emirates to pump more than half of its 2.3 million to 2.4 million bpd of exports to the terminal of Fujairah on the Gulf of Oman, a Reuters report said.

IPIC has invited Chigago Bridge & Iron, JP Kenny Ltd, Penspen International, Technip , Veco Engineering and WorleyParsons to bid for the front-end engineering design contract, sources told the news agency.

The contract will be awarded at the end of July or in early August, they said.

The 320 kilometre pipeline would link state oil player Abu Dhabi National Oil Company's Habshan oilfields to the port of Fujairah, a major ship bunkering hub for vessels refuelling as they enter and leave the strait.

The new pipeline will also lower shipping costs for the UAE's oil exports, as shippers charge a premium due to the war risk for entering the strategic channel.

Germany-based ILF Consulting Engineers will manage the project.

IPIC is wholly owned by the government of Abu Dhabi.


Wednesday, 04 July, 2007, 10:23 GMT  | last updated: Wednesday, 04 July, 2007, 10:23 GMT

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